IIE:CA V.IIE

Kaiser likes Iciena's neighbor Pele in Wawa

[tkelly]

John Kaiser mentions "very cheap juniors involved in the Wawa region" and suggests investors watch Wawa juniors closely. Kaiser also mentions Chuck Fipke's analysis of Iciena's Wawa diamond-bearing rocks in the following write-up: Excerpt from Kaiser Bottom-Fish Tracker 2002-29 Copyright 2002 John A Kaiser October 15, 2002 Pele Mountain a top priority bottom-fish buy in the $0.20-$0.29 range for its Wawa play While we are on the topic of how helpful properly reported micro diamond results can be in evaluating new kimberlite discoveries, I do need to mention the Festival project of Pele Mountain in the Wawa region of Ontario. Ever since Al Shefsky abandoned longest dimension micro diamond reporting last year and adopted the full-blown sieve system I have been plotting the micro diamond results for the various showings on the project. The Wawa area is dominated by Archean aged breccias that appear to be metamorphosed volcanic complexes of kimberlitic origin that have been shuffled around since their emplacement more than 2.5 billion years ago. Some of the units have very high micro diamond counts, which when reported in the longest dimension format encourage predictions of Diavik style grades. But when presented in a proper sieve format, it is clear that the frequency drops sharply as size increases. Like Victoria Island, the market has dismissed the Wawa diamond play as yet another science project that wastes investor capital pursuing a non-existent quarry. The curves were generally discouraging, but last summer some began to show up that looked interesting, including the Mumm and Don Perignon outcrops. One that stood out was Genesis. Pele Mountain recently excavated 4.5 tonnes from the Genesis showing and ran it through a crude on-site processing facility that managed to recover 0.52 carats for a recovered grade of 0.12 ct/t at a 0.8 mm bottom screen with the largest diamond weighing 0.085 carats. AMEC has modeled a grade of 0.3 ct/t using the caustic fusion and mini bulk sample data. This is substantially better than the 0.02 ct/t recovered early this year from a 100 tonne sample taken from the Cristal showing, and modeled by De Beers at 0.06 ct/t. The difference between the Cristal and Genesis outcrops shows up clearly in the sieve based micro diamond plots, which you can view at the following link: https://www.diamondplay.com/s/Education.asp?ReportID=43355.. Pele Mountain now has a powerful micro diamond tool to map the diamond potential of the complex Wawa rocks which Chuck Fipke has interpreted as ancient metamorphosed kimberlite. The Wawa rocks are believed to be part of a giant Archean volcanic complex, some of whose magma flows may have contained diamond populations with a coarse distribution that has commercial potential. Unlike the traditional pipe hunt, the Wawa diamond play is similar to a volcanogenic massive sulphide play where the original mineralized units have been moved around through post deposition folding and faulting. The big hope for the Wawa play is that 50-100 million tonne zones at the surface grading 0.2-0.3 ct/t and valued at $100 plus per carat are intermingled with the lower grade zones. This potential has not yet been demonstrated, but Pele Mountain's sieve based reporting is showing that the quest is coming tantalizingly close to a breakthrough that transforms the Wawa play from science project status into a serious play with world class potential. Should this breakthrough happen, namely demonstrating that these ancient Archean rocks have large stone potential with 0.2-0.3 ct/t grade within large tonnages, the equivalent of the Fort a la Corne kimberlites without a hundred metres of overburden hampering exploration, the implications could be staggering. With an implied project value of only $6 million reflecting about 30 million shares fully diluted, and 100% ownership of a key part of the Wawa play, Pele Mountain is very cheap. Although a definitive breakthrough has not yet been achieved, we are so close that I have to declare Pele Mountain a top priority bottom-fish buy in the $0.20-$0.29 range. Even if you do not want to bite quite yet, watch this play closely, because there are several other very cheap juniors involved in the Wawa region which would coattail on breakthrough news from Pele Mountain. Pipe exploration is beyond the capacity of the typical prospector, but peeling back the moss and prospecting Archean aged diamondiferous outcrops is about as traditional as you can get, especially if samples as small as 5 kg can give a good indication whether or not you have hit the jackpot. If the code distinguishing the micro diamond loaded Wawa rocks from those that carry macro diamonds can be cracked, Ontario and Quebec will be crawling with prospectors. Cracking the code of the commercially diamondiferous Wawa rocks When I said the implications of Wawa breakthrough would be staggering, I was not just referring to Pele Mountain's price appreciation potential, but to the entire approach to diamond exploration in the Superior craton. The preceding is an excerpt from a recent Tracker put out by John Kaiser of the Kaiser Bottom-Fishing Report. It has been excerpted for redistribution with John Kaiser's permission. [No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer to buy or sell the securities mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy thereof, nor the statements contained herein. Kaiser Trackers are available through an annual subscription to the Kaiser Works by Email at US$199/year or by Fax at US $499/year. To order contact Canspec Research at PO Box 6456, Moraga, CA, 94570-6456. Tel: [phone]. Fax: [phone]. Email: [e-mail]. Archived copies available at www.canspecresearch.com.]