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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: james flannigan who wrote (1482)	10/28/2003 11:04:33 AM
From: rdww	Respond to of 16206

one of the probs at snap now is the dilution - they say that they have to take more waste ore along with the nice stuff because of the instability of the rock I think. what has been coming true is that the larger the bulks - the better the chance of finding some really big stones - ABZ for example - but till ya commit based on what ya know -those biggies are just pie in the sky stuff

To: james flannigan who wrote (1482)	10/28/2003 1:32:58 PM
From: WillP	Read Replies (1) \| Respond to of 16206

Traditional thinking was that you needed a 5,000-carat parcel to get a good idea of the diamond value from a valuation exercise. De Beers believes that it can model the value of a diamond deposit using data from much smaller parcels. That leads to your concerns. I was told that the actual valuations of the last MPV parcels was lower than the modelled value, and that would be expected. Look at the difference between the latest Fort a la Corne valuations vs. the De Beers modelled values. The modelled values are more than double the actual valuations. That's normal, and is what happened to Aber's A-154 North pipe recently -- as the market should have anticipated. What will happen with the MPV pipes, I don't know. I would personally expect that larger samples -- read production -- would produce better values, but there's not enough data in th epublic domain to base an intelligent prediction upon. I don't know the actual valuation results, for instance. I am hopeful that in production, the Hearne and 5034 would outperform the De Beers modelled values, but it's an uninformed guess, without knowing many of the details. Regards, WillP