Attawapiskat JVWell perhaps next month we may even see some movement on the property JV with Big Red. I remember reading the Big Red news off an on over the last year or so and if it has taken them this long to verify the invoicing.... Talk about moving slowly to resolve a simple matter.
Hello Chad,
I just noticed this article from Will that came out today. Talk about a coincidence.
Cheers. Andrew.
Big Red awaits Attawapiskat answers
2007-01-15 15:56 ET - Street Wire
Also Street Wire (C-MTX) Metalex Ventures Ltd
by Will Purcell
Big Red Diamond Corp. is eager to resume work on its Attawapiskat diamond projects in Northern Ontario, but first it wants some answers from partner Chuck Fipke. Big Red's president, Francois Desrosiers, said the lack of work for the past two years stemmed from administrative problems, not geological issues. He now thinks Big Red can settle matters with Mr. Fipke and Metalex Ventures Ltd. and get back to work. Arctic Star Resources Ltd. also owns a piece of the Attawapiskat project.
The issue
"We have asked [Mr. Fipke] to validate the expenditures he has incurred since August, 2004," said Mr. Desrosiers. Big Red believes Mr. Fipke should have been doing more consultation about work plans for the shared diamond projects in the Attawapiskat region of Northern Ontario, and the company expects more information about the results from the exploration programs.
The Montreal-based management consultant said Big Red and Arctic Star had geologists and qualified personnel that worked diamond projects in a number of areas. Mr. Desrosiers believes several heads are better than one, even if that one is the co-discoverer of the Ekati diamond mine. For now, Big Red is refusing to pay its share of the costs from the last exploration programs until it gets some answers. Meanwhile, Mr. Fipke is withholding the results of that work until Big Red settles its share of the bill.
Mr. Desrosiers thinks the impasse could soon end. Big Red sent a small delegation of its qualified people out to Kelowna two months ago and they did come back with a report. Big Red's geologists believe there are some worthwhile targets on the Attawapiskat properties that Mr. Fipke has not yet investigated, and some features deserve to a more thorough check. "We raised a number of questions about that and we expect Mr. Fipke's answer within a few weeks."
Mr. Desrosiers said his company was looking forward to contributing to new work programs on the property, once Mr. Fipke responds to Big Red's queries. The company currently has a 20-per-cent interest in the projects it shares with Mr. Fipke's companies and it is responsible for that share of the costs. The company had a working capital deficiency of over $750,000 last summer, but Big Red sold over $1.2-million worth of new shares late last year to replenish its treasury.
The encouragement
Big Red originally staked many of the claims it now shares with its Attawapiskat partners, based on hopeful results from a De Beers Canada Inc. project. The diamond giant is now building a diamond mine at its Victor pipe, which contains nearly 30 million tonnes of kimberlite with an average grade of about 0.23 carat per tonne.
That would be just geological trivia if the Victor gems were not worth well over $400 (U.S.) per carat, giving the rock a gross value of about $117 per tonne. De Beers expects its operating costs will be barely $40 per tonne, giving it a healthy profit expectation from its $1-billion diamond mine.
Victor's success continues to draw interest to the James Bay lowlands and Big Red and Metalex believe Mr. Fipke remains enthused about finding a source for a swath of indicator mineral grains covering a 3,500-hectare area on one of their property blocks within 10 kilometres of the De Beers pipe. The D-6 fan was big news a few years ago, as the usually tight-lipped Mr. Fipke was briefly chatty about the mineral chemistry.
The partners did muster drill programs on their properties a few years ago, but the results yielded nothing of promotional value. A new drill program appears likely, once Big Red and Mr. Fipke settle their administrative issues.
Big Red closed up three pennies to 16 cents Friday on 88,000 shares. Metalex closed up a nickel to 60 cents on 109,000 shares.