GREY:PGDIF - Post by User
Post by
Kidlapikon Nov 17, 2016 1:31am
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Post# 25473237
The Diamond Business
The Diamond BusinessIf you have to ask why do another bulk sample for CH-6 you truly have no idea what the diamond business is all about and you should sell all your shares today.
The Diamond business is all about the law of averages. This is not Gold, or silver or any other mineral. This is completely subject to the law of averages.
Right now we have a parcel of diamonds taken from a parcel of rock, and in the grand scheme of diamond projects it is a relatively SMALL parcel. As Diamonds are not a mineral and were created through lava intrusions the "proof" of a grade/value of the diamonds in a kimberlite is 100% based on the law of averages. a 2.58carat per ton model on 500tonnes is less certain than a 2.58carat per ton model on a 10,000tonnes model.
That is the diamond industry. That is exactly why I buy on rights offerings and buy on dips. So far CH-6 has been 2.58carats/ton at $185/carat and we have never gotten a diamond bigger than a few carats. And the CH-7 sample was smashed to hell and STILL gave us a $100+/carat model. For comparison look at KDI at $58ish/carat if you want to see other comparible projects.
The history of this project looks like a horror story of things gone bad. You can see this and say this will never get off the ground its terrible blah blah blah for me, living up here I think, its an absolute inevitability. ANd given the smashed CH-7 results I almost believe its a set up. This will be at worst case scenario another SWY with tons of shares added and a billion dollar valuation that still represents a $1.00 value some day. But if you look at the tiiming of the schedule and releases it is clearly looking at the deep sea port creation date as a milestone for scheduling in construction matierals.
In my opinion. Maintain your % ownership now, wait for the next funding announcement. If you see a severe dip, add to your position again and again and again, this will be a mine. It will be a 20+ year mine on a 100% owned diamond district that is on the same scale as Gatcho Kue. Iqaluit wants it, Nunavut wants it, and the Management has HUGE skin in the game which means if they make "dumb" decisions you have to understand they can only "hurt" themselves. If they spook retail investors off its only to buy it up for themselves (see Eric and Roberts Rights offerings purhcases and the lower stock options given to management).
2.58carats per ton, $150+(smashed CH-7 parcel, CH-6 undervalued small statiscal sample) to only a minimal depth. Compared to Stornoway which is over double the depth of the CH-6 pipe. It is is very very easy to see the upside potential. Anyways since we seem to be stating our positions I have 600,000 shares and I have a budget rdy to take advantage of the "sell off" that happens if it is either a PP at a discout or take advantage of a rights offering. I plan to have over 1,000,000 shares before 2017.
GLTA