Worthwhile InformationThe below is an extract from "The Sovereign Society's Offshore Newsletter" that I receive.
Our guest comment is by Stephen Hershoff, Managing Director of
Pastor-Genève, Antwerp, Belgium, experts on colored diamonds
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COMMENT: Canadian Diamond Riches.
Dear A-Letter Reader:
Intelligent mining investors looking to profit from the growing global
demand for diamonds have focused their attention on Canadian diamond
exploration. Canadian diamond production reached 11.2 million carats
with a total value of US$1.3 billion in 2003, more than double the
country's 2002 levels. Canada is ranked 6th in the world in diamond
production. But more significantly, they are currently ranked 3rd in
the world in diamond revenue because of a higher per carat value.
It has also been reported that 3.1% of the 540 Kimberlites found in
Canada prior to 2003 were worth mining. By comparison, only 0.7% of
the 6395 Kimberlites found across the globe were worth mining. That
means Canadian mines are four times more likely to be successful.
This makes Canadian mines amongst the most profitable in the world.
Bloomberg news reported that every $1 dollar of sales from the Ekati
mine in the Northwest Territories results in 56 cents of profits!
It has long been known that when a mining company discovers diamonds,
their share price will grow significantly. However, investors have had
difficulty investing in diamond companies because privately held
DeBeers used to control over 80% of supply and new diamond discoveries
in the 20th century were in areas of turmoil, such as Congo and Angola.
But Canada offers investors the chance to profit from the enormous
growth of diamond consumption, while enjoying the political and economic
stability of an established democracy.
One of the most talked about areas is the Attawipaskat region in
Northern Ontario. DeBeers Canada and other exploration companies quietly
have invested heavily in this region and to date have discovered 21
diamondiferous Kimberlite pipes.
DeBeers main project is the Victor pipe, which is set to begin
production in 2008 and will have an estimated annual production of
600,000 carats of "high value diamonds" and a value of more than $1
billion dollars.
Another notable investor in the area is Charles Fipke, who is famous for
discovering the Ekati mine. Mr. Fipke believes the Attawapiskat region
has as much potential as the Northwest Territories.
Considering Canada's Northwest Territories produces almost 10% of the
world diamond supply and some of the highest quality diamonds anywhere,
the untapped potential of the Attawapiskat region is still within reach
of astute mining investors looking to get in on the ground floor.
The Attawapiskat region lies on the Eastern Canada shield, which has
recently seen a surge in exploration. The geology indicates strong
potential for diamond discovery based on the presence of an archaen
craton, which is a thick and cool lithosphere. There are also well
developed, deep structures favorable for the ascent of kimberlite
magma. These conditions are ideal for large-scale mining operations
and high quality diamond deposits.
Investors who act now may jointly own a part of what is rapidly
becoming the main source of diamond supply in the 21st century
and reap the benefits of the vast wealth created from diamond mining.
Stephen Hershoff, Managing Director
Pastor-Genève B.V.B.A.
Brusselstraat 51, B-2018 Antwerpen, Belgium
Tel: + (0) 32 3 244 1871 Fax: + (0) 32 3 244 1873
Web site: https://www.pastor-geneve.com
E-mail: admin@pastor-geneve.com
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COMMENT LINKS:
* Diamonds: Adding luster to the Canadian economy. LINK:
https://www.statcan.ca/english/research/11-621-MIE/11-621-MIE2004008.htm
* The Victor Project: Fact Sheet. LINK:
https://www.debeerscanada.com/files_2/victor_project/factsheet.html
* Ekati Earnings to Fall to "Historic Levels"
LINK: https://www.diamonds.net/news/newsitem.asp?num=10652