ok here is the westwind may31 reportWednesday, May 31, 2006
Dianor Resources Inc. (DOR-V: $1.30) Rating: BUY
Dianor Site Visit — Leadbetter Continues to Impress Target: $2.20
Matthew O’Keefe 416.815.3087 mokeefe@westwindpartners.ca
Philip Williams 416.815.1548 pwilliams@westwindpartners.ca; Michael Daykin 416.815.3113 mdaykin@westwindpartners.ca
Insight or Development: We recently completed a site visit to Dianor’s Leadbetter
property in Wawa, Ontario. We continue to be impressed by the rapid progress the
company has made in bringing the project into the mini-bulk sample stage in just 18
months.
Analysis: The 90 minute flight to Wawa and 20 minute drive to the site (past an old
Algoma Steel iron ore mine), demonstrated the ease of access and mining history of the
area. Drilling continues to define the diamond-bearing conglomerate at depths over
600 m. A walk along strike of the northern section of the outcropping conglomerate for
500 + m (one third of the total strike length) put into perspective the enormous size
potential of the discovery (over 100 MM tonnes). Discussion around diamond quality
and a review of results to date were encouraging, as the abundance of clear octahedron
crystals recovered bodes well for value. Several of the six tonne sample pits were
observed and we were informed that about 90% of the sampling (600 tonnes in total)
has been processed. The next batch of 6–10 samples is expected in the next week or
two, but “picking” (manual sorting of the concentrate) continues to be the bottleneck.
Additional results should provide more diamond data and larger stones that will better
define the diamond population.
Conclusion: Dianor continues to represent an excellent speculative investment. The
Leadbetter discovery has the potential to be the next significant diamond deposit in
Canada — comparable to Shore Gold’s Star kimberlite in Saskatchewan. We maintain
our BUY rating and $2.20 target.
Sources: Company Reports, FactSet, Westwind Partners
All figures in C$ unless otherwise noted
$160.8
69%
Base Case Conceptual Mine Model
First Production 2009E
Tonnage (MM) 100
Grade (cpht) 70
Throughput (tpd) 12,000
Diamond Value (US$/ct) $50
Capex (US$) $150
Market Cap (MM)
Total Potential Return
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
0.4
0.8
1.2
1.6
2.0
2.4
3048
317
Volume in Thousands (max/avg)
Ressources Dianor Inc. (DOR-CA)
30-May-2005 to 30-May-2006 (Daily) High: 2.180
Canadian Dollar Low: 0.255
Last: 1.300