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 : MINK MINERAL RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: average joe who wrote (493)	6/19/1998 3:33:00 PM
From: George S	Read Replies (1) \| Respond to of 637

The joint venture between Mink International and Ashton Australia is centered around MADE (Mali Diamond Exploration) and independent company owned jointly by Mink International (49%) and Ashton Australia (51%). The primary reason for the creation of MADE is that the Mali government grants concessions only to individual companies and not joint ventures. MADE's charter is in the Netherlands which is the choice of Ashton Australia. The MADE agreement covers the responsibilities and duties of both parties in regards to the exploration of diamonds in the Kenieba Diamond Concession in Mali, West Africa. The agreement is divided into two separate phases of exploration: The Mink Phase and the Ashton Phase In the Mink Phase it is Mink's responsibility to explore and discover kimberlite bodies (pipes or dykes) and then to deliver to Ashton Laboratories in Perth Australia, 500 kgs of kimberlite material from each kimberlite body discovered. Upto this point 100% of the responsibilities, duties and costs are carried by Mink. Upon Ashton receiving the 500 kg of kimberlite material from an individual kimberlite body that particular body reverts over to the Ashton Phase. All future costs and responsibilities for that particular body is then covered 100% by Ashton, upto and including a mine feasibility study. The Ashton Phase consists of the following steps: 1. Process the 500 kg sample delivered by Mink 2. 25 tonnes of sample from the pipe is taken 3. 1,000 tonnes of diamond bearing samples are taken 4. Sampling to produce 5,000-1000 carat valuation parcel. 5. Feasibility Study for mine Upon completion of the feasibility study a new company will be formed to develop and operate the diamond mine. Participation of the new company will be as follows: Mink International 39%, Ashton Australia 51%, Government of Mali 10%. The above process is repeated for each individual kimberlite body. This joint venture agreement is unique in that Mink takes on the initial risk of discovering kimberlite pipes and Ashton takes on the main portion of exploration costs which is in the bulk sampling stages. The risk would be high for Mink if it was not known if the property contained kimberlite pipes but Mink has minimized it's risk factor by proving it is able to discover large quantities of kimberlite bodies and will continue to do so in the future. In the entire exploration process, from indicator mineral sampling to bulk sampling and on to feasibility studies, Mink's contribution to exploration costs is minimal. I guess one could argue about size of Mink's final 39% interest in a diamond mine but to that I would say that Mink has only to give a little in order for it to get back a lot. Also I'm sure that Ashton has no problem what so ever with owning 40% of the Argyle mine in Australia. A great weekend to all! Regards George S.