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 : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: 1st.mate who wrote (1242)	4/27/1999 7:46:00 PM
From: russet	Read Replies (3) \| Respond to of 2402

I'm not sure what you folks have heard, but my face to face discussions with these guys (CNB and SWG) indicate that all the diamonds projects are very much exploration plays. There is no guaranteed commercial production yet. The most advanced project is Rio do Sono alluvial project (CNB and PVF) and they have only done preliminary sampling (by panning and trenching) of gravels in several areas of the river and recovered small diamonds. They are relying on historical records in this area and have been looking for large beds of potentially diamondiferous gravels along the river that have not been worked before. Considering the area has been worked for 200 years, it is hoped, but not certain, that by using bulldozers and loaders and a modern diamond processor they can get enough gravel, of high enough diamond concentration and value ($/carat) to make a good profit. They will spend the next year bulk sampling each of the areas they have chosen as highly prospective. There are no guarantees. It is my understanding, the other properties JV'd with PVF in Brazil (Macapa, North Bahia) are on hold for the next year. SUF will be a joint operator in the other highly prospective Brazilian property, and long-term I think this is the more interesting one, with the potential to uncover bigger diamonds (historically), lots of fancies, and more gravels in a more extensive river system,...a lot more river systems to explore,...and lots of hard rock parents sources already delineated (500) by geochemical and geophysical means. There are already several small alluvial operations on these rivers and SUF has the right to explore and develop these as well. SUF is the bulldog of diamond exploration and they don't give up easily. This is a huge area to explore and SUF wants to diversify its SAf holdings and shake DeBeers grip on its earnings very badly. The Ontario projects are very early exploration projects. They are following indicator mineral trains and geophysical evidence back to parent hardrock sources. Kennecott tends to be a cautious, deliberate explorer IMO. They are ruled by a strong corporate parent that demands results before committing large sums of money. Expect the exploration to be slow, meticulous and deliberate. They will study lots of initial data before they get into more expensive drilling,,...and eventually bulk sampling. Don't expect any serious drilling for a year or more. My two cents,...don't expect much in share price or results for at least a year, unless they get very lucky in a Brazillian project. This is a medium term hold (1-2 years) and you will be well rewarded. Relax guys,....management is very good and work hard for us. Keep working the day jobs or enjoy the retirement and forget about this stock for a year. One day these guys will make us rich. russett