Post by
schocor on Nov 28, 2017 5:05pm
Todays Price - Focus Moving Forwards - Partners
I also expected a little bump in stock price and more importantly volume on this news; it appears the heavy volume (to the extent it existed) was yesterday PRIOR to the news. No matter. This news de risked the project, but not appreciably. Everyone expected the CH6 diamonds continued at depth so there was no surprise. While that beautiful unique deep green stone is interesting (green diamonds form from contact with radioactive alpha particles) it wont add a lot of value to Ch6 as the quantities of such stones are likely very very small. Its sexy though. Here is a thought; weather at Childiak this time of year is beyond terrible (I believe the town itself was closed today). Typically, the plan with diamonds (anything really ) is to open pit mine as deep and economics allows. Because these Chidiak pipes are rich rich and small and the weather at site terrible, I wonder if they will rework the mine plan to do a shallow open pit mine and a deep deep block cave underground mine possibly with common underground workings to access other, proximity pipes to CH6. This might explain the excessive (for this stage) focus on CH6 and deep delineation drilling they undertook. Shareholders will be rewarded once we get more resources proven up. I think work on the other promising pipes should now be the focus. If we can prove up a couple of additional years of mine life, expand the throughput for the process plant things should improve for shareholders. Get that 10tph DMS unit at site and process the heck out of these other pipes I say. There MIGHT be more diamonds at Childiak than EKATI and Diavik combined (130M) On the partner discussion; we are running out of players. Dominion/Washington are not in the mix and they are just trying to figure out what the hell is going on with their existing projects (a real mess). All the other small players (stronoway, MPV) are to small or broke to take a swing at financing this. I think we are left with DeBeers, Alarosa, Rio Tinto or Lucara*. Debeers looked and passed (or they were broke at the time.nobody knows). Alarosa never invests outside of Russia. Rio Tinto may or may not be interested in the diamonds business long term. Lucara MIGHT be looking for a way to spend their cash of which they have A LOT.
Comment by
racer-x on Nov 28, 2017 5:52pm
Dominion says they will spend $50 million on exploration. Well here are the dimonds they could fund feasibility with that. These are the $200/ct ones not the $50/ct they have over there.
Comment by
mill44 on Nov 28, 2017 6:34pm
Racer, the shareholders would not be in this pain if the market would think that the Friedlands can be approached with a 50M offer. I know it's funny when you consider that that's almost the whole market cap, but that's the reason no one is stepping up or that the market is not speculating on a deal.
Comment by
racer-x on Nov 28, 2017 7:10pm
Not me North Arrow wrote it in one of their flashing adds that appear on the this web page like it was all to be spent on them, just saying Dominion is looking for more diamonds
Comment by
mill44 on Nov 28, 2017 7:38pm
I don't doubt that Dominion wants to spend money on exploration, I doubt that the Friedlands would be willing to entertain any offer under 50c/sh. And that's a very conservative number. So unless Dominion is fine with a 10% stake in Chiliak, I think they will have to bring more than 50M to the party, a lot more.
Comment by
racer-x on Nov 28, 2017 8:03pm
The price will go up if they come in with more money. What is it with Friedland was he a draft dodger America hater is that it everyone has run away! He could be on drugs otherwise I am okay with him.