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 : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Digger who wrote (14032)	2/8/1999 12:13:00 PM
From: John Paquet	Read Replies (2) \| Respond to of 26850

Spence; Mineman will become one of our director in that DIAMOND NORTH RESOURCES. wE ARE PLANNING to list in three major Stock Exchanges in Canada.; namely, TSE, VSE, and ASE. We are preparing company prospectus, completing a listing statements, filing supporting documents, and we will sign a listing agreements ammong all the Exchange. Then we will undertaking private placement to raise SEED money. It is estimated along .35 a shares plus two warrants. This seed money is insiders' money, very high class money, very high potential earning power money. If you are interested in this PP, do not hesitate to let Mr. John Paquet know. Then We will acquire a good and very potetial Diamond exploratio0n in NWT. We expect that $120 million from New York New York Institution Investors, and another $100 million from Tronto Bay street especially that First Marathon which I have connection with it and maybe that AGF Mutual money managers. By the time Diamond North Resources Listed in three Exchanges, ouw WSP will be .35 to say the least. I am not kidding at all. Be smart in making your investing decision. Good luck to you Buddy. John Paquet

To: Digger who wrote (14032)	2/8/1999 12:27:00 PM
From: chummer	Read Replies (4) \| Respond to of 26850

A worthwhile post from stockwatch- Author: WillP -- Date:1999-02-08 08:50:10 Subject: Diamond Analysis OK, all...chew on this for awhile. We know the sizes of the four largest stones: Just under 11 carats, 8.4 carats, 6 carats and 5 carats. There are 21 other stones larger than 1.0 carats...weighing 37.44 carats. A total of 1387 diamonds were recovered that didn't fall through a 1x9 millimetre screen. Recovery of stones below 2 millimetres seemed to be very sloppy. So...it's fairly easy to construct a diamond distribution curve...and here is one. The weight categories were selected to match the raw diamond value chart I sent earlier. The value is the average value of a gem of equivalent quality to the three largest diamonds, based on the value chart. The four largest stones sizes are known...they don't appear in the table. The purpose of this exercise is to determine the valuation of the remaining stones. This isn't rocket science. Number .. Size Range . Avg.Wt. Value Total Value ... 2 ..... 3.00-3.99 .. 3.30 ... 1552 .. $10,243 ... 4 ..... 2.00-2.99 .. 2.30 ... 1328 ... 12,218 ... 6 ..... 1.50-1.99 .. 1.65 .... 930 .... 9,207 ... 9 ..... 1.00-1.49 .. 1.15 .... 830 .... 8,591 ... 4 ..... 0.90-0.99 .. 0.93 .... 556 .... 2,068 .. 13 ..... 0.68-0.89 .. 0.75 .... 423 .... 4,124 .. 29 ..... 0.46-0.67 .. 0.53 .... 340 .... 5,226 .. 21 ..... 0.38-0.45 .. 0.41 .... 249 .... 2,144 .. 66 ..... 0.25-0.37 .. 0.29 .... 183 .... 3,503 .. 82 ..... 0.18-0.24 .. 0.20 .... 141 .... 2,312 . 257 ..... 0.10-0.17 .. 0.12 .... 108 .... 3,331 . 652 ..... 0.05-0.09 .. 0.06 ..... 83 .... 3,247 . 238 ..... 0.02-0.04 .. 0.03 ..... 43 ...... 307 The total value of all of these stones...assuming they were all of the exact same quality as the three largest...would be $66,521. Now, we know that the value of all of these stones, totaling about 196 carats, was approximately $16,750, or one quarter the value of the total parcel. So...if you deal with just one value class...average, each diamond was worth $85 US per carat. However...if you use two quality classes...crap and equivalent to the top three stones...you easily compute that fully 25% of the stones had to be in this category. That is, 49 carats were so classified. Now if you add in the 25 carats from the top three stones...74 carats out of 226 or just under 33% would account for all of the value. Now some of you are going to whine...but there are 5000 different classes of diamond valuation. So what...mathematically? If the sample is large enough...you get the same result. I can simulate as large a bulk sample as you want. It yields the same result mathematically. Go ahead, try it with three classes...with five...with seventy-four. So now, as I have alluded...it is an easy exercise to generate a bulk sample...either with statistics or by iteration on a computer. Using the lowest, most conservative values throughout...diamond distribution curve based on 1.14 carats per tonne, gem quality at 25% not 33%...I consistently generate a value per carat of between $145-$175 US with the median at $160 for a 6,000 tonne sample. The median largest gem contained in these parcels was 31.7 carats. Now remember...these numbers were generated with many conservative assumptions: #1. There is a real and high probability that the average grade will be 20-50% higher than 1.14 carats per tonne. #2. In assessing gem quality...the entire contribution of the three largest stones was ignored. That's not realistic. #3. I artificially deflated the distribution curve at larger sizes. This is my own personal safety hedge. A simple way to consider it all is...there were 4 large stones...three of gem quality. These 3 contributed on average 25% each to the value of the parcel. There should have been only one...statistically. So the value per carat should be halved...to $150 per carat. This is a good conservative number to play with...not the 85 US per carat that totally ignores the fact that the stones existed. And a final thought...remembering all the theory of diamond formation...transportation...and destruction... Do you really wish to base your investment decisions on the principle of ignoring something that was duly found and assessed by at least 4 independant diamentaires? I think 3 of four stones over 4 carats being fine gems was a bit of a fluke. But quite possibly it's not. I don't know enough about diamonds. But the more astute of you out there will realize...I know a little bit! What I do know alot about is life...and one lesson I've learned is it never pays to ignore reality...and the fact that three stones weighing 25 carats were worth over $50,000 US...is reality. :-) Cheers!