Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: VAUGHN who wrote (2532)	2/25/2005 8:56:30 AM
From: james flannigan	Read Replies (1) \| Respond to of 16206

Vaughn,you are correct.How can you make money mining diamonds at @ C$ 20.00 per ton? And remove 100mtrs of over burden even before you start.Answer you cant.Investors are about to learn a hard lesson in valuing low grade deposits and high grade deposits like MPV.I have seen this unbridled hype before to name a few Bre-X,the Gold bull market of 1996 when every jr explorer was the next Bre-X before the bust,and the internet bubble of 1999.It never fails the promotion dept of a company hypes what a reasonable man would think is foolish,then convinces brokerage houses to jump on board and pump the stock or they will miss the boat.Then cash out before the realization of the rest of the market catches that the deposit is uneconomic to mine even though the numbers were in public for everyone to see.I hope my take is wrong and it works out for SGF shareholders in the end.But I have seen too many situations like this before.Warren Buffett says the stock market will try to sell your grand mother swampland in Florida all day long. Iam not trying to bash SGF nor short the stock,just I do not see the numbers as the way people do that are buying the stock at these inflated prices James

To: VAUGHN who wrote (2532)	2/26/2005 11:40:02 AM
From: Famularo	Respond to of 16206

A partial Writeup and JK insight.....frank The Saskatchewan Diamonds make it to the Olympics Synopsis: Saskatchewan's Fort a la Corne diamond play has received significant news on two fronts which turn it into the most important advanced diamond project in the world: De Beers has approved a $26 million budget for 2005 on the FALC JV and Shore Gold has confirmed that the Star diamonds fall within a modeled range of $110-$162 carats per tonne. Both developments signal that the Fort a la Corne diamond field is in a world class league and possibly of enormous strategic significance to the world's major diamond producers. As Shore Gold Inc (SGF-T: $5.09) busies itself with the task of proving that it has sufficient tonnage at the indicated US $22 per tonne rock value to justify mine development and a valuation higher than the current $5 stock price, the market's attention will shift to Kensington Resources Ltd (KRT-V: $1.50) which along with equal partner De Beers is embarking on an unprecedented exploration drilling campaign to identify the precise location of higher grade kimberlite units within their multi-billion tonne cluster. This work will include drilling right next door to the Star kimberlite, a "significant portion" of which De Beers believes to be on its ground. Given that Kensington and De Beers have more than enough "kimberlite room" to find their target of 70 million carats in higher grade units, and may by the end of 2005 have demonstrated that their portion of the Star kimberlite may be as big as that controlled by Shore Gold, it is hard to avoid the conclusion that the greater upside potential during the near term lies with Kensington. In the spirit of the bottom-fishing rule of selling some too soon and some too late I am issuing a 25% Partial Sell for Shore Gold, leaving a Spec Cycle 75% Hold recommendation in place. Anybody hoping to spin this into a "Shore Gold Sell by Kaiser" should note that the bottom-fishing strategy involves buying juniors when they are unloved by the market and taking profits as the market falls in love with them. Shore Gold is now an institutional stock for which I hear at least one "top diamond analyst" is calling for an $11 target. That is how I wish the bottom-fish universe would always unfold. Bottom-fishers who bought Kensington when I issued a top priority bottom-fish buy in the $1.00-$1.25 range on February 1 when the stock was trading at $1.06 should hold their positions 100% in anticipation of a new trading level developing in the $2-3 range as the market adjusts to the new credibility of the Fort a la Corne diamond play. To view the full express click the link below: kaiserbottomfish.com