IIE:CA V.IIE

IIE Update

[GDAWG77]

Iciena waits on weather to start Brazilian gem hunt 2008-02-13 14:57 ET - Street Wire by Will Purcell Under new management and with its stock flatlined at a nickel, Iciena Ventures Inc. hopes a big drill program will spark interest in its Paranatinga diamond project in Brazil. The work will not start until drier weather returns to the Mato Grosso district, likely in April. Mato Grosso translates to "thick jungle" so it is no surprise that heavy rains are a problem. The plan Iciena will have a 90-per-cent interest in the property once it completes its spending requirement. Chuck Fipke's Kel-Ex Developments Ltd. is operating the project and has a 10-per-cent-carried interest. Nobody ever accused Mr. Fipke of being a cheap date on an exploration play, so with his company in charge of exploration, Iciena should easily fulfill its spending requirement. A big geophysical survey was one of the bigger expenses so far. That work produced plenty of top targets and Iciena expects to test at least six and probably 10 of the features. Although planning is incomplete, the Iciena property will likely see Kel-Ex drill up to 25 holes. Rainy weather will be a minor impediment to Northern explorers used to howling blizzards, short days and fragile ice roads. During the four wettest months, central Mato Grosso averages 90 centimetres of rain, comparable to that which Vancouver averages during its wettest four months. Fragile infrastructure is the real issue. The Paranatinga property is a 385 kilometre drive from Cuiaba, much of it over dirt roads in rough shape at the best of times. The transport of heavy equipment by road during the rainy season is difficult, but Brazil's hardy road warriors insist the muddy trek "is not impossible." Unlike Vancouver's cool rains, daytime temperatures routinely top 30 C during the Mato Grosso rainy season when mosquitoes and malaria flourish. There are no environmentalists here, just soybean farms and brush. Brazilian exploration is cheaper than in Canada and Iciena thinks it can complete each hole for less than $15,000. As a result, the drilling budget will likely be $500,000, or less. Mr. Fipke's crews have already spent over $1.1-million of Iciena's cash, so the company thinks it can reach the $2-million spending target later this year. At the start of October, Iciena had $1-million in working capital, so it could produce promotable news before selling more shares. The encouragement Iciena has favourable geophysics, location and history to provide encouragement, but all are tough touts with speculators. The surest sign of diamonds in Brazil is the sight of local miners, called garimpeiros, trundling up and down the streams and rivers crossing your property. A garimpeiro is the Portuguese equivalent of a sourdough, and their diamond liberation activities are legal in Brazil, at least until the property owner sets up a mine. Garimpeiros are working Iciena's ground and they have been finding diamonds. In fact, the Paranatinga area produced some large stones over the years, with finds of up to 300 carats. The diamond parcels collected by the local miners typically sell for between $90 (U.S.) and $120 (U.S.) per carat. Both De Beers and Rio Tinto PLC hunted kimberlites in the area. They did discover kimberlites, but they contained few hints of the alluvial gems found by the locals. De Beers did find some some alluvial diamonds, but the best kimberlite yielded just a few stones. Although De Beers and Rio Tinto moved on, Mr. Fipke has other ideas. Iciena closed unchanged at a nickel Tuesday on 1.11 million shares