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

To: Rocket Red who wrote (14444)	2/11/1999 3:02:00 PM
From: .Trev	Read Replies (3) \| Respond to of 26850

Well young fellow I had a long chat with Sophie this morning and there's no doubt the road to riches is fraught with difficulties. The first one is that promotional material is not allowed to be distributed into the US of A so listen up you Americans. You're not allowed to read this post in case it might lead you into Irrational exuberance or whatever it is that traps Americans even as far up as the President. The second thing is that a digital (and therefore postable) version of the report is simply not available for the above reason. The third thing is that with my typing skills I might die of old age before I could type seven pages. The fourth thing is that with a report prepared by George Albino, who has 30 years experience in the Diamond industry, and which is put out by the largest (Ithink) Bank in the world , and which makes Kaiser's latest and best look like the work of a recent kindergarten graduate, it seems to me that the shareholders of Wsp should at least get to see the Conclusions. Too I thought that those people who might have accidentally gone short should realize that the Snap Lake project is for real. Now be sure that I am not responsible for the views expressed and that I make this post only in the spirit of Public Service for discussion purposes, so that all can see what we have been leading up to. Quote. Conclusions: from a report By Deutsche Bank. We have liked the potential of Winspear's Snap Lake property since we first saw the diamond grade and values about 6 months ago. The missing data to let us fully assess the project was mainly the microdiamond results from the mini-bulk samples. We now have those data which strongly suggest that the kimberlite in the mini-bulk samples was typical of the main north west dike, and that the other dikes at Snap Lake contain similar populations of fine diamonds. In our opinion this indicates a good likelihood that similar(ca. 1 carat/tonne), or possibly even better grades, will be found in the 6,000 tonne bulk sampling period planned for this winter. The main uncertainty would then shift to diamond value - the previously obtained #301/carat is among the highest valuation ever obtained, and we question whether such a value could be maintained. As long as the value remains over about $170/carat we estimate that an acceptable return of investment is possible, however, and if the grade upside we suspect does materialize this threshold could drop to the $150/carat range. Other (Group 2) fissure kimberlite deposits in Africa do reach or exceed these values, so unprecedented high values are not needed. In the long term we do have a major concern that the time lag to production and some of the unique challenges in financing this deposit could weigh on the stock. Even if an economic deposit does emerge, Winspear may follow the traditional trajectory of a rising share price during exploration/delineation, with a long dull period leading up to production. Recommendation Winspear has advanced Snap Lake to the point where the play has to be taken seriously. The future is in the numbers - the grade from this year's bulk sample, and equally important, the diamond values. With grade and value equating to about $185/tonne or greater we see a good probability of a mine. We feel that the data make such a value likely. Until these data are in Winspear remains a speculative stock, but in our opinion one of the best high-risk, high-reward plays in the Junior market. We rate Winspear Outperform (Speculative) Unquote My own comments.... Avid readers among you will recall that much of this analysis has been heard already from our own in thread experts , who are to be commended for their expertise and ability. Without offending any one else the two that come to my mind are Teevee and WillP. The other 6 pages make equally interesting reading. Luck everybody.