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

To: average joe who wrote (11669)	1/12/1999 2:11:00 PM
From: Chad Barrett	Read Replies (2) \| Respond to of 26850

Ok aj, you say there isn't enough kimberlite to make the mine profitable, right? First of all, they have examined the possibility of mining just the small proven reserves and have found it to be economic. Yes, this would be a small operation, but with the economics of it they would likely proceed (but the small operation wouldn't justify the huge share prices people here are hoping for, and I doubt that there would be a buyout of the company by a larger diamond producer). The bottom line is that with the small resource, if the diamond values hold up it is profitable! On the other hand..... and this is more important!! I see NO indications that WSP has found the boundaries of the kimberlite dyke(s)? DO YOU?? Please share them if you have this info!!!? WSP has also indicated that they plan on proving up 10 million tonnes with the current program!! That is the size of many of the kimberlite pipes in the NWT. Once again taking into consideration the high values of the diamonds WSP has, this would be a very profitable mine! Finally, keeping in mind that the dyke(s) are still open in all directions (except where they surface I guess?).... after they prove up the 10 million tonnes during this program, they could continue proving up more? Please correct me if I am wrong with any of these observations (and please use available FACTS to support you answer - I don't want to hear something like "they don't have that much kimberlite!"... explain to me why they don't have that much!!! Please refer to the drill maps if possible!) I would agree with you in saying that there isn't enough kimberlite to make a worthwhile mine if I had some reason to believe that the edges of the kimberlite dyke(s) were just outside of the known drill holes... but when they haven't found the edges yet... ? .. that seems to indicate there is potential for a larger dyke area. Also, you must consider that the "resource" as it stands now is just including the heavily drilled area... it doesn't extrapolate the tonnage out to all of the scattered holes that were testing the extent of the dyke...