Star DIAM Mentioned (Tue, 04 Jan) - Summary by Will PurcellStar Diamond trades like a going concern thanks to enthusiasm for rough diamond prices at its FalCon project in Saskatchewan. Ken MacNeill and Ewan Mason's Star Diamond Corp. (DIAM) rose 1.5 cents to 32 cents on 977,000 shares. With the new accord between the company and Rio Tinto Exploration Canada (RTEC), Star's co-venturer at FalCon in central Saskatchewan, comes optimism that a feasibility study of the Star-Orion South kimberlite complex will warrant a positive production decision.
There is much that could generate disappointment at the feasibility stage -- lower than hyped grades, higher than projected capital and operating costs, the banishment of inferred resources and the like -- each carrying a greater chance for downside than improvement. Rough diamond values are, however, one crucial area where the market thinks an improvement is more likely than not -- and RTEC appears to be betting on that possibility.