To: Chas. who wrote (43 ) 2/23/1999 11:51:00 AM From: teevee Read Replies (2) | Respond to of 177
uthor: teevee -- Date:1999-02-23 08:43:42 Subject: apples and orangeites I believe Mr. Kaiser's comments deserve a comment . "Mr. Kaiser's general assessment of the Deutsched Bank Securities report is that it is "pretty good." He does have some strong reservations asbout some claims, however. In particular, he points to a statement appearing on page four of the report: "It is our experience, however, that getting lucky with one diamond is possible, but that with three stones each carrying a substantial part of the parcel's value the likelihood that the very high valuatiion obtained for the Snap Lake diamonds is grossly inflated is we believe, small." Mr. Kaiser says, "that is complete nonsense." He notes that diamond populations have a random distribution....." I suspect Mr. Kaiser is confusing Diatreme facies Type I kimberlite with hypabyssal Type II kimberlite (orangeite). Typical diatreme facies develope under extreme phreatomagmatic conditions. These conditions generally result in variable and significant dilution from country or host rock, diamond breakage, resorption etc. The explosive mixing with country rock does lead to random distribution of diamond within diatreme facies, and different diatreme pulses. In sharp contrast, the emplacement process of hypabyssal type II kimberlite, whether South African style, near verticle dykes, or shallow dipping ring dykes (cone sheet) at Snap Lake, geologically infers rapid cooling, comparatively less dilution, much less diamond breakage and resorption, and grade continuity. CF results idependently support grade continuity. In fact, it is the very consistant grade continuity of Type II kimberlite dykes in South Africa which allows mining and development with a high degree of confidence once grade and value per carat is established. regards, teevee