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

To: Brezlin who wrote (5421)	3/17/1998 7:58:00 AM
From: George J. Tromp	Read Replies (3) \| Respond to of 26850

Hello: I think the market is looking for more than diamond counts on the Snap Lake drilling. That area has been the best source to date., the Athena block which is further west could offer a surprise., as well as the Eastern drilling near CL25. In my opinion however., this will be the last year that the market will be interested in what Snap lake has to offer. So it is pivotal at this juncture for them to prove the economics of either the dyke system and or the existence of a pipe with acceptable diamond counts. As Marco., and others have said the downside is .50C should they strike out on both accounts. Up to this point., the prospect of 75% transparent fancy colored stones., backed by Raman Spectrosocpy and confirmed by Lakefield., and Winspear adds a value dimension which could make a very small deposit very valuable. We know a lot of preliminary things concerning those stones., what we dont know for sure if there are large stones which account for 90% of the value of the dyke system. Here are some thoughts going forward: The dyke or sill could contain 3.0 mill tons plus If large stones appear to increase the diamond count to say 5.0 carats/ton from the 3.59carats/ton already reported. If those stones were valued at say 100.00/carat The NAV of that deposit would be 1.5Bil . Could it happen., well 75% gem quality is one parameter already fulfilled. Secondly., the fancy colors., pink., greens., and yellow could easily produce 100.00/carat stones or higher. What makes this deposit interesting is the orientation., a relatively flat deposit. Most dyke systems as you probably know are relatively narrow in width and consistant in depth and quality to around 1000m as evidenced by the Bellesbank., Star., and others in S.Africa. So yes., IMO if the dyke land based portion is near surface., and a flat like plate deposit it could easily be mined without the complexities of a lake bound deposit. The 200 ton bulk sample should provide the answers to those questions concerning., grade., value., and tonnage potential. If the drilling proves a connection or continuance to the 186 anamoly then considerable tonnage could be implied. We know as well that yellow stones were present in 186. 186 is aprroximately 3000 meters N., N.E of the land based sill complex. At this point in time., with the current price of .80C., I will be hanging around til they complete the program. Next year., well that depends on what they show during this program. Sincerely George J. Tromp