Well Bill: As I have said so many times before., look at the amount
of economic pipes worldwide that have pure classic kimberlite signatures. Out of the economic sources classify how many of those
sources are economic lamphroites. There are anomalies all over the
world., thousands upon thousands. The first requirement in my book
is to search areas with the 2 to 2.5 Billion cratons which lend support
to the proper temperature and pressure condusive to diamond formation. Again I will repeat the following cratons exhibit this geological stabil;ity for high grade high gem quality deposits.
You have the Kalahara Craton., evidenced by the Orapa., Jwaening.,
Venetia pipes. Moving over the the slave craton., we are all aware
of those pipes., with Aber., Diamet thus far as well
pipes discovered like Cross Lake., being a fringe area has proved
uneconomic. Now moving over to W. Africa., we have the Sierra Leonne area as well a stable 2.0billion year old craton., highly diamondiferous., high gem quality but highly eroded leaving alluvial
deposits., evidenced off the coast of Nambia., and the dyke deposits
and pipes of Sierra Leonne. The mirror image of that craton appears
to be the Reguaton to the North in Mauritania. Off craton borderline
you have the Mali pipes., not centered over craton but off craton.,
and thus far low diamond counts., and gem quality.
You have as well Angola with a rich history of high quality stones.,
and S. Africa as well. So simply put I personally will not invest one
dime in a Diamond Play that doesnt exhibit my requirements that being. 1. Centered on Archaen Cratons of 2 Bil years and stable
2. Classic kimberlite signatures such as G-10., G-9 garnets.,
Sodium rich indicator miners., spinels., Chrome Diopsides. High G-10
and G-9 counts relative to the mix of indicator minerals.
Hundred upon hundreds of targets have been drilled off craton., in
various parts of the world., and guess what., only a few have ever
proved economic. The lamphroites of the world are many., and even
less potential for economics. So what in the world would compell me
to look anywhere else.? In reviewing Maurum., remember as well the
pipes in Sasketewaan., British Columbia., everyone wants an economic pipe., but the odds being off craton., enhance the chances
for low grade., low gem quality. There seems to me., the proven
economics of existing pipes., are centered on Archaen Cratons.,
so that is where my investment dollar is geared. I dont day trade stocks so my goal is to invest dollars where I think there is long term
potential for an economic discovery. The following areas of the world
meet that requirement. Australia., Sierra Leone., Angola., NWT.,
S.Africa., Botswana., Nambia., Brazil. Thats it., I look no further.
Lost opportunity., I dont think so. Trading opportunity possibly., but
that remains to be seen.
So to put this in perspective., Maurum may present trading opportunities to those so inclined., but my dollars wont be invested
in an area., yet to be proven economic., or high gem quality. The
numbers dont mesh.
For a long term perspective as well, one should be aware that only
the high gem quality., high dollars/ton ore bodies will be brought
to production if raw diamond prices slide. The Indian rough will deteriorate in price., only the highest gem quality will be in demand.
Think about which deposits., will be marginally economic in the worst
scenario of sliding prices. So my hedge is to invest in the best quality
deposits worldwide. 112,000,000 carats are produced annually out of
that total around 10,000,000 carats are high gem quality and large
stones.,
I would suggest all of you read Luc Rhombouts and Marcel report
presented to the Mining Analysts of London on Feb 24 on Rex Diamonds website. Some interesting points can be gleamed from
the supply and demand worldwide., taking into consideration if a slide
continues over an extended period of time.,. I want to be positioned
in the best companies., that will be producing regardless of demand
for lessor stones.
Sincerely
George J. Tromp |
