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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: DIAMOND JIM who wrote (4444)	3/14/1998 3:28:00 PM
From: chummer	Read Replies (2) \| Respond to of 7966

DJ, I enjoyed reading your calculations. It might be a bit premature, but it's still fun. Are you taking gem quality into account here? What if we're conservative and assume 20% gem quality, or even 40%? How would that affect the 1.575 billion? Bill

To: DIAMOND JIM who wrote (4444)	3/14/1998 4:33:00 PM
From: Jesse	Read Replies (1) \| Respond to of 7966

Hi DJ-- hoping for even better numbers than that. For one, as you've pointed out, higher value coloured diamonds would raise value/tonne. Also, it appears that we have more good-sized quality clear stones in samples thus far, which skews the value per carat higher. And I'm hoping for grade (cpht) to be higher too (in the larger samples). If you consider mining costs in AB are est. to be around $15/t (almost 1/3 of NWT), we can look at value above that as gross profit. If we can prove a larger gem-stone population in the tonnage, we might see values at $100/ct or higher, which could be very profitable, even with a less than spectacular cpht count. For example, If the value of stones avg $100/ct @ a grade of 50cpht, that's a value of $50/tonne, and a profit of $35/t. Multiply the $50- figure by the estimated tonnage for gross value. Multiply the $35- figure by the estimated tonnage for profit value. -That's how we can arrive at an economic deposit calculation. --I believe, as you did, estimated deposit value is usually presented without first subtracting extraction costs. :) There are many variables to consider, of course, which is why 1,000's of carats are appraised as part of the feasibility study. - Just trying to offer more speck data to consider! - Cheers, -j :> PS, one more thing to consider is that mining costs are coming down, as technology is making extraction methods all the more efficient. PPS, fancies fetch substantially more per carat: white-diamonds.com Also, Fancy Diamond Intro: colored-diamonds.com Price Graphs: colored-diamonds.com Fancy Diamonds photos: colored-diamonds.com