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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Laflamm who wrote (3971)	11/16/1997 6:47:00 AM
From: George J. Tromp	Read Replies (3) \| Respond to of 26850

Hi Patrick: There isnt a person following Winspear that isnt disappointed with the share price or the option repricing. I am going to try and answer some questions which may clear some issues. Prior to the commencement of the drill program last January., I was informed by Sophie that the cores would have an expedited turnaround period with Lakefield labs., that special arrangements had been made to fly the cores out for quick turnaround. My view is this: If Winspear had had long intersections of kimberlite early into the program., then they in all liklihood would have expedited those cores. Why to get early results back to determine which cores warranted more drilling before moving to the next target. Kimberlite is visible in the core.. Winspear probably viewed the cores made a determination of whether to expedite or not in the field or back in Vancouever. As the program progressed enter 186. If we recall back that core was viewed in Vancouever by Winspear personnel., was sent to Lakefield as well. I do believe that from an analyitical viewpoint at that time Winspear did not know what they were dealing with., sill., dyke., or a beast of unknown origin. Sometime thru the 30 hole program., I raised the question concerning the tardy turnaround on cores. In retrospect viewing the whole program I can understand the lack of urgency . 1. The first drill holes in the dykes came back with a few cm and up to 4.1meters of kimberlite., short intersections not condusive to espendiant attention. Secondly these cores were complicated by something we may all come to love and adore., FANCYS. which included a few pinks and greens., not your everyday whites, More analysis., more verification., this time some of those stones were sent to University for analysis. What does this all mean? There are extenuating circumstances which force companies especially in this type of exploration to adjust or reformat schedules. It is my belief that prior to the commencement of the 30 hole program., it was Winspears intent IF LONG INTERSECTIONS of kimberlite were encountered early on that these cores would have been expedited per the arrangement that Winspear had with Lakefield lab. Events did not occurr to warrant that action. Pattrick: DeBeers CSO is a monopoly or cartel. It is sometimes in there best interest to talk down diamonds especially when 10% of the worlds production will be coming out of Canada. See Des post on Aber thread. The supply of larger gem quality stones will be shrinking. The most value in any diamond pipe is less than 5% of the stones., If the pipe has a population of larger stones the charts show steady increase in values. Note Debeers last year raised the price of larger stones by 7%. In the sight sales., all stones are grouped with acceptance or rejection based on the lot. Hence the movement of the small stones as well as a few select larger stones. As production approaches in the NWT., DeBeers will make several attempt at creating misinformation to stop the onslaught. As production nears in the NWT., other pipes will be nearing closure. There are around 30 producing pipes worldwide., some of which will be nearing the end of there most productive years. Debeers has done a masterful job of marketing diamonds., in asmuch will be masterful in creating other illusions as well. When you get a chance talk to Rex Mining and see whether they have had difficulty marketing their large stones. By large stones., I mean ..5 carats and above. George