Diamonds North Resources Ltd V.DDN

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Diamonds North Resources Ltd

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Post by Ogre2on Dec 01, 2009 4:48pm

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Post# 16542240

Analysis

Here is some analysis for all of you who had the patience to continue with the stock:
A salient comparison is with respect to previous samples from the Amaruk field, and how the share price responded.
Quick points before the charts
1. This is the first diamond recovered on the 1.7 mm sieve on any previous kimberlite results, and the diamond is estimated at only 40% size due to percussion breakage.
2. Only 2 diamonds were recovered in any previous kimberlites on the 1.18 mm sieve, this sample had 9 diamonds which are fragments only, so they are likely at least 1.7 mm size.
3. They did not check for diamonds below 0.6 mm for cost effectiveness, so if there are approx 67 diamonds on the 0.6 mm sieve, based on past samples in this field, there would be around 3500 diamonds in this sample below the 0.6 mm in this bulk. Not relevant for the test here, but would be commercially additive in mining (similar to silver credits in gold mining).
4. Geophysical parameters and theory were correct, the signature of this pipe yielded results. It was a gamble that the company geologists and geophysicist took, and it paid off, and should yield more effective future exploration - more bang for their buck.
5. The total diamond/tonnage is excellent, even though it looks like only 1.1 diamonds per ton, as the smaller diamonds are disregarded. If we compare this to Tuktu-1, which saw a share price increase of 265% after news, Tuktu-1 had an effective diamond/tonnage of 6.73, which looks a lot more until you factor in the smaller diamonds not tested for. In fact, Beluga-3 has effectively >31 times the diamond count if we look only at larger diamonds.
6. Expect in this market not such a huge relative jump as the old Tuktu results used to give, as the market is not the same overheated one jumping at crumbs in 2007, but I would say these are very good results.

OK, enough quibbling, here are some charts for you:
The top row shows the sample size in kg, and sieve sizes. Last column is diamonds/kg.
Beluga-3 is at the bottom. Notice that the empty columns mean nothing found for most samples at or above 0.6 mm, except for Beluga-3. Also, if we assume a statistical mean of 0.6 mm diamonds to smaller diamonds not tested for, we need to add about 3500 diamonds on the smaller sieves to Beluga-3, so the diamond/kg goes way up.
Cheers, and enjoy your vacation.
Ogre

	kg	0.106	0.15	0.212	0.3	0.425	0.6	0.85	1.18	1.7	Tot & /kg
Tuktu-1	81.75	269	158	73	37	11	2				550
	D/kg	3.29	1.93	0.89	0.45	0.13	0.02				6.73
Tuktu-1B	412.15	1693	695	270	83	70	33	6			2850
	D/kg	4.11	1.69	0.66	0.20	0.17	0.08	0.01			6.91
Tuktu-2	107	222	239	101	26	15	4				607
	D/kg	2.07	2.23	0.94	0.24	0.14	0.04				5.67
Tuktu-2B	551.95	1528	780	340	136	84	39	2	2		2911.00
	D/kg	2.77	1.41	0.62	0.25	0.15	0.07	0.00	0.00		5.27
Tuktu-3	37.85	81	76	41	16	4	1				219
	D/kg	2.14	2.01	1.08	0.42	0.11	0.03				5.79
Tuktu-4	66.4	3	1	0	1	0	0				5
	D/kg	0.05	0.02	0.00	0.02	0.00	0.00				0.08

Q1 - MK	332.15	130	86	34	21	6	0	277
	D/kg	0.39	0.26	0.10	0.06	0.02	0.00	0.83
Q1 - SMKB	644.6	102	60	29	8	5	2	206
	D/kg	0.16	0.09	0.04	0.01	0.01	0.00	0.32
Qavvik-2	71.2	2	3	2	0	2	0	9
	D/kg	0.03	0.04	0.03	0.00	0.03	0.00	0.13
Qavvik-3	72.8	94	51	28	6	3	1	183
	D/kg	1.29	0.70	0.38	0.08	0.04	0.01	2.51
Qavvik-4	65.7	73	28	21	5	1	1	129
	D/kg	1.11	0.43	0.32	0.08	0.02	0.02	1.96
Qavvik-5	103.4	72	35	19	2	1	1	130
	D/kg	0.70	0.34	0.18	0.02	0.01	0.01	1.26
Qavvik-6	107.7	62	39	8	7	2	0	118
	D/kg	0.58	0.36	0.07	0.06	0.02	0.00	1.10