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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@JamesKwantesThey're drilling the existing Q1-4 kimberlite; at 12.5 hectares it's the largest in the eastern Arctic. Only been delineated to 205 metres and likely goes deeper, so trying to get a better handle on size, grade & nature of the diamonds. Here's some background from the project description on website (Q1-4 resource is inferred):
Additional resource upside in the form of a target for further exploration was estimated at between 7.9 to 9.3 million carats of diamonds (from 14.1 to 16.6 million tonnes total content of kimberlite with an average +1 DTC total diamond content of 56.1 cpht (assumes 100% recovery), extending from 205m depth to 305m depth. The mineral resource estimate comprised the integration of kimberlite volumes, density, petrology and diamond content-data obtained from 5,133 m of diamond drilling, 2,714 m of reverse circulation (RC) drilling, 2.9 tonnes of samples submitted for microdiamond analysis, 257.7 tonnes of samples submitted for macrodiamond sampling with 59.2 carats of diamonds (2,054 stones) recovered from RC drilling, 7.5 carats of diamonds (205 stones) recovered from surface trenching and 2.36 carats of diamonds (69 stones) recovered from HQ diameter diamond drilling. $NAR
@AllanNot sure how meaningful $NAR resource is when most of the white stones carry a poor valuation, now the spin is well there could be a population of colored stones with a courser distribution curve. Let's assume that is the case, it would mean that they come from a separate intrusion than the white stones, a much smaller intrusion because it has much higher counts of white to colored stones. So if most of the resource is worthless why even bother talking about the resource, all that matters is determining the size of the intrusion with the colored stones. They kind of want their cake and eat it too when it comes to promoting the thing. They want to talk about the size of the resource, which is mostly worthless and would never be mined while also talking about the economic potential of what looks like a very small tonnage of what are being promoted as much more valuable stones. That small intrusion likely would never have a shot and their small sample will not help them understand more. Like I said, smoke and mirrors. But hey, Ross Beaty put money in so it must be a winner, he never gets it wrong and has tons of experience in diamonds.
@lukejacksonI'll say this: Allan doesn't seem lost talking diamonds, at all. $2 million to Beatty ain't much and he's been participating alongside Lundin & Electrum on quite a lot lately. He's known to be a good shareholder and the full warrant is attractive at this point in the cycle. I'm not reading too much into his participation. $NAR my two cents.
@lukejackson$2 million seems to be his token participation number. Proabaly an easy cheque to the right people and we know there's quite a few of the right people (the same ones involved in $KAM) involved in $NAR.
@ekimI wonder if William Lamb $LUC left the board of directors on $NAR so that they could make room for a board representative for either Ross Beaty or Electum. I think that makes sense...but sometimes you have to put the pieces together after the fact. It seemed strange that Lamb would leave the board of directors at the time. #diamonds
@ekim@allan I believe Lamb stayed as an adviser...but I see that a lot of diamond industry. Keep in touch with us and help us...but we won't pay you very much....if at all.
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@ekim@Cautiousnow I try. Paul Zimnisky is now starting to list Chidliak in his forecasts as a very viable entity - http://www.paulzimnisky.com/2017-global-natural-diamond-production-forecasted-at-142m-carats-worth-15-6b
The liberals haven't launched the infrastructure bank that is still in the works. Supposed to be officially launched htis year. I basically think it is a way for the government and private investors to group money together to help loan out affordably to infrastructure type projects in need...the private investors should be guaranteed by the government. It will be interesting to see how that unfolds. We wait. Wonder if Ross Beatty and Electrum could double dip in the diamond industry and invest in $PGD as well as $NAR. It sure would make a statement for them.
@AllanThey say if a journalist isn't pissing some people off they aren't doing their job. I got an earful from the folks at $NAR this morning. I don't think they are too happy with my commentary lately. It was a little humorous because they also said I'm mouthing off just to hear myself talk and that most people are probably not interested in my commentary. The funny part is if nobody is interested in my opinion why are they calling me.
@AllanAnd what is the distribution throughout the pipe. They are younger as per what I read on $NAR's website, which means they likely came from a different phase. How big is that phase and what is the grade of the colored stones in that phase?
@Allanrocketman, my guess is they won't give them much more helpful info and when the results come out they will have another spin. This one sounds like they are trying to keep the balls in the air to me. But who cares, I'm just another guy with an opinion, talking to hear myself talk and nobody listens to me anyway. Still don't get why the $NAR guys care when that is what they think of me. Or maybe they care because a few people listen.
@AllanDoing some more homework rocketman on $NAR. The last sample they processed 1353 dry tonnes returned 384.28 carats. Those carats were then separated into into three parcels, yellow, dark-yellow and a non-yellow parcel. The non-yellow parcel is the one John Kaiser on my show said looked like boogers and earwax. The dark-yellow parcel, which WWW still only gave a value of $46 per carat because they have issues. Yield being a big one from the stones I looked at in their run-of-mine parcel on their website. Those dark-yellow stones only make up 24.49 carats of the 384 carats. The 384 carats are low-grade, the 24 carats really really low-grade. Now in order to get a reasonable idea on valuation you need around 1000 carats, so to get 1000 carats of those dark-yellow stones they would need to do a sample around 40 times larger than the last sample. That sounds like 50k tonnes to me, by my country math I don't think $5 million gets them that much rock. What are their plans for 4-5k tonnes? Like I said before this new work won't answer much more than we have already know from the earlier sample. I was challenged to do more homework and was told I don't know what I'm talking about from the $NAR guy, but these numbers just ain't adding up to this old country reporter and certainly aren't changing my opinion.
@Allanrocketman, a lot of those stones in the 1000 carats fall into the boogers and earwax category for $NAR. The dark-yellow which are the focus of the big promotion will add up to less than 100 carats in the new sample. So what more can they learn from around 100 carats than from 24. The easy answer is not f'n much.
@ekimI would have to say at least $NAR has been able to bring in $$'s. Look at $KDI 's recent proposed financing.. They are asking the shareholders for a handout -- "Shareholders seeking further information about participation in the placement should contact the company. " That $KDI deal is not a done deal and they have bills and bills to pay for money already spent.
@Allanjames, the $NAR guy pissed me off today, and challenged me to do more homework, so that's what I'm doing. I'm able to do homework, commentate and run my companies. You know why. Easy answer because this country reported is a hard worker. Not some lazy blogger.
@GEMOILThere is an old saying "bet on the jockey not on the horse". There is a whole stable of jockeys at NAR that have made a lot of money for investors over the years. Smart speculative money knows where to place their bets.
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@AllanI got called out by James on here and he brings up my companies when he does because I question his pick $NAR. Then I get calls from $NAR people yelling at me and swearing at me, and questioning my integrity and reporting. All because I called it a smoke and mirrors show. Yet they are the ones promoting a diamond play based on the potential of dark-yellow stones that returned 24 carats from 1300 tonne sample. That is an extremely low grade of diamonds. If it walks and talks like smoke and mirrors, well you know the rest.
@ekim@gemoil Just looking at the reserve statement...they are trading at an undiscounted NAV of 1.35 billion US or about 1.8 CAD billion (undiscounted). Plus the big diamond they haven't sold...so maybe $CAD1.9 billion undiscounted (No tax) NAV. When you add a discount and subtract some tax....the current market cap of CAD$1.2 billion is probably a sign that Lucara is fully valued. If you want a speculative upside stock...Lucara is probably not the place.
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@GEMOIL@ekim the point I was trying to make is grade is secondary to value. As far as speculation goes if a stock does not pay a dividend (in my opinion) it is a spec stock. I'm only speculating in 2 non-dividend paying stocks, NAR (2,000,000 shares) is one of them and TLO (4,000,000 shares) is the other. The rest of my holdings are actual investments and comprise 5 Canadian bank stocks that paid dividends during the worst economic downturn times. With the two spec stocks I'm betting on management as much as property and when I sell or they get bought out the money will purchase more Canadian bank stocks.
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@ekim@gemoil can't agree more. Value should be the focus. Both victor and lucara know that full well. Kdi is full on advertising grade as well as Dvi. NAr value has upside with the yellows. Maybe that is the confusion in diamond investing. In gold investing grade and value is the and thing.
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@JamesKwantesHere's a Vancouver Sun feature on $ICG CEO Stephen de Jong that I wrote two years ago. It was the bear market, stock was trading in the .30s & Integra had just picked up the Sigma-Lamaque mill.
“When the money disappears in the industry, it’s the exploration that gets turned off first, then the development. The pipeline of projects that everyone relies on has sort of faded away. There are no real exploration discoveries being made right now, because there are so few exploration dollars actually being spent.”
There are links to a couple of the other stories I wrote here as well, including Gren Thomas $NAR$SBW$WHN & Mike Jones $PTM$WKMhttp://www.vancouversun.com/Young+drives+Quebec+gold+project+forward/11031235/story.html
@ekim$NAR is not the only ones with fancy orangey/yellow diamonds. $KDI and Dr. Rory Moore have just confirmed today that they officially have fancy Yellow stones in the Faraday 2 deposit in the macro sizes. #diamonds
@JamesKwantesCouldn't help but notice $KDI's largest 3 stones -- 4.72c, 4.28c & 3.45c -- in that latest NR very comparable in size to 3 largest from $NAR's Naujaat (4.42c, 4.16c, 3.53c). Kennady's parcel was twice the size (carats) of $NAR's as well #diamonds