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

To: Famularo who wrote (2237)	1/5/2005 3:09:30 PM
From: VAUGHN	Respond to of 16205

Hello Frank As previously stated, ACA has proven to be promotionally adept and that alone has always done wonders for early birds, and yes, mining costs will be lower at the Renard cluster than they are in the NWT. I eventually expect ACA to pop based on progress (and promotion); it’s just that I do not anticipate that progress as early or as potentially significant as I do with the plays I referenced. Many ACA late comers have been burned over the years and I suspect it will take more to pop the shares 2 to 3x this go round. Re: MTX, unless your sources are clairvoyant, they couldn't know whether MTX has pipes or dikes as of yet, as field operations are not contracted, are under lock and key and no hard rock source has been found (or suggested by mag/EM) for the various KIM/Kimberlite clay fans that have been intersected. Local mag/EM is extremely noisy and while management sees a number of undrilled subtle circular targets, they really can't distinguish very much and have had to rely on the time honoured method of working backwards from down ice sampling in effect repeating what CF did in the late 80's before he found Point Lake, et all. Economic pipes are found in clusters, that has been the pattern worldwide which has held up here in Canada as well witness Ekati's six pipes, Diavik's four and Kennedy's four. Even ACA's Renard shares this emplacement pattern. DB's Victor is an orphan, and MTX holds the key ground that should produce its parents. That is the real promise of this play. SWY's price is probably where it should be considering management found several (smallish) pipes with promising economic potential and partnered with majors on large land packages with very promising KIM and mag/EM targets. It is also reasonably well held by a number of institutions although nowhere near as deeply as MTX. I don't dislike SWY, it’s a good speculation. Its simply already been appreciated to the degree that I don't anticipate as large a % pop this spring as I do from SRM which is in effect its sister play. More to the point, Eira and Pam both presented at the Geoscience Forum in YK this past November. Based on what was released and my review of available data, I believe SRM have more and larger mag/EM targets with more trains of exceptional KIM chemistry than does SWY. SRM's problem hasn't been finding pipes,... its been that they've found so many! The dilemma is magnified because if you recall, one of Ekati's best pipes literally had no KIM's to recommend it, so SRM is forced to test each pipe for fear of ignoring what is perceived to be barren but which may in fact carry a grade like Koala's... SRM collected so much data and took so many KIM and core samples last summer and fall that they still have only publicly released about half if memory serves. So between now and March/May we should be getting a great deal more data and perhaps some exciting micro/macro counts from a one or more cores. If SRM only appreciated or popped to where SWY currently trades, shareholders would realize a very healthy % gain even before management commences its 2005 field season. No guarantees of course, but that’s where my chips have been placed. Good luck. Vaughn