Will Purcell (sigh )YOU GO PETER .....
Patrick Evans's Mountain Province Diamonds Inc. (MPV), down three cents to $5.65 on 32,000 shares, has begun shipping equipment to start construction of the Gahcho Kue diamond mine, 250 kilometres northeast of Yellowknife. The company and its co-venturer, De Beers Canada, have an impact benefit agreement with the Yellowknives Dene First Nation. The Indians get training and jobs and priority for supplying equipment, goods and services. Chief Edward Sangris says the agreement will provide "fair participation in opportunities" -- not to be confused with fair participation in the risk of building a $600-million mine in the Arctic. Not to worry, Mr. Evans's shareholders are convinced opportunities abound at Gahcho Kue. The 45 million carats technically have a modelled diamond value of barely $100 (U.S.) per carat but the intrigue surrounding Mr. Evan's carefully crafted promotion suggests a much higher value is possible. The appraised value of the Gahcho Kue gems was closer to $200 (U.S.) per carat, thanks to a few large and particularly high-quality stones. Although the modellers at De Beers and WWW International Diamond Consultants Ltd. deemed the recovery of those stones a bit of a fluke, Mr. Evans and his loyal shareholders believe the modellers are conservative. The profitability of Gahcho Kue should determine who is right.