Since you like picking bill's posts apart, here's another one you can work on:
De Beers & Economic Diamond Mines in the FALC
By: bill19336
15 Aug 2004, 09:14 PM EDT
Msg. 12644 of 12660
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***BASHERS. here's some facts for you.***
Part I.
Read the article below and follow the links to get an idea of what the future holds for us.
"De Beers extends support"
The StarPhoenix (Saskatoon) 2004
June 29, 2004
Here's the link to the entire story: http://www.realestateappraisals.com/News/FLC0604.PDF
Below are some highlights from the article:
The president of Kensington Resources Ltd. Robert McCallum says that De Beers has committed $6 million in exploration activity from now until March 31.
Furthermore, he sees an increased interest by De Beers in finding out how many other, high-quality kimberlite bodies exist near the four bodies that have already been partially drilled during the past five years by the joint venture. He sees De Beers shifting priorities and possibly going in a completely new direction.
(I will speculate on the reasons for this change in part II.).
The four main kimberlite bodies identified by the joint venture already contain an estimated 369 million tonnes at an average modelled grade of 10 carats per hundred tonne, according to information De Beers has supplied to Kensington.
(CMKX has hundreds of anomalies.)
He says there are enough huge kimberlite bodies within the land the Fort a la Corne joint venture has staked that it could be possible for a central processing plant to be fed from three to four giant open pits, where the total tonnage of kimberlite could approach a billion tonnes.
(CMKX owns millions of acres of newly surveyed land.)
Using De Beers' computer-modelled estimates of $146 per carat from the 79-million-tonne kimberlite deposit, McCallum says each tonne of kimberlite in that deposit could be worth about $26 Canadian.
On the cost side, he says open-pit methods such as those used in the Fort McMurray tar sands could easily be kept around the $15-per-tonne mark. Considering the huge size of the deposit, an operating margin of $10 a tonne would make for a highly profitable large-scale diamond mine even if the grades are low by Canadian standards, McCallum said.
(Open pit is the fastest, cheapest and cleanest way to mine for diamonds).
As great as the above referenced material sounds, it's important to realize the constraints Urban and Roger are under. As I said in post 12589 (click on http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB00206&read=12589 ), Urban has to maintain the perceived scarcity of diamonds. De Beers has been hugely successful as a result of their "benevolent manipulation" of the diamond market. Thus, the last thing we need is for someone to "flood" the market with diamonds.
If Urban's ultimate plan is to transform the diamond industry from a cartel-controlled to a free market structure, we will need to be patient. I'm not saying we will not do well in the short term, I'm just saying that we will do incredibly well in the long term.
Good Luck
N O T E S:
1. Just for kicks, take a look at the map that compares CMKX's, De Beer's and Shore Gold's holdings in the FALC region.
2. Then consider each company's holdings in the FALC region.
CMKX = 2 million acres...............De Beers =58,000 acres................ Shore Gold = 30,000 acres
3. Now extrapolate some numbers from the figures De Beers has published.
4. It's about long term VALUATION, not OS, not Naked Shorts!!!
5. Don't allow bashers to confuse and frighten you, review the facts that the true longs have posted and decide for yourself.
6. The Punchy Palooka has no facts, he only promises to give us facts and has said he will apologize if he's wrong.
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB00206&read=12644
By: bill19336
15 Aug 2004, 10:31 PM EDT
Msg. 12648 of 12660
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***Some more facts for bashers***
Part II
De Beers extends support part II.
Why do you suppose that De Beers just invested another 6 million in the Fort a La Corne Region?
In my opinion, it's because they know the center of the diamond universe will soon be located in the FALC region. I outline a few of the reasons for the shift from Africa to Canada below:
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First, read the transcript of a radio interview with Dr. Mark Hutchison, the world renowned geologist.
*Dr. Hutchison: (quote) ""Well, Fort à la Corne is actually internationally known as being quite an exceptional area for kimberlites and for diamonds. And, as I say, it sets up an internationally-known area for large kimberlites and kimberlites of significant size and because they're diamondiferous, there’s a potential for very large quantities of diamonds"". (end quote).
-In my opinion, it is well known that many of De Beers older African mines appear to be on the brink of being "mined out".
http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=50759
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Below are some of the advantages that will turn Canada's Fort a La Corne region into the capital of the mining world:
*A stable political situation in Canada is a major savings since there is no need to appease petty dictators. Additionally, the need for extreme security measure to prevent attacks by political dissidents is not necessary.
-The African nations continue to suffer the instability of war and a fluid political situation (e.g., Sierra Leone, Botswana, etc.)
Follow the link below to read about De Beers current problems. http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=64937
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*The Canadian government is currently attempting to lure mining companies to it's mineral rich areas in an effort to create jobs. Some companies have even been able to receive tax concessions from the regulatory authorities.
-The African nations continue to be an obstacle to the mining companies working there.
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*The necessary infrastructure already exists (i.e., roads, housing, airports, etc.)
-In remote locations expensive support networks must be built from scratch.
Follow the link below and read about the city De Beers built. http://edwardjayepstein.com/diamond/chap2.htm
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*Canada is right next door to the largest diamond market in the world, that is, the United States.
-The shear distance from Africa to the largest target market adds an expensive layer of cost to the distribution system.
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*The diamonds from Canada can be certified to be "conflict free".
-The world has been made aware of the suffering caused by illegal "blood diamonds".
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*Since Canada has always had an abundance of experienced workers, the operating costs in Canada can be kept competitive while at the same time providing a living wage and decent working conditions to it's workforce. Additionally, it has always been difficult to lure the best and the brightest to the remote regions of the African continent where mining is done.
-The inhuman conditions some mining companies force upon their workers in Africa are an abomination to mankind.
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*Canada's central location will make the movement of foodstuffs and equipment to the site much cheaper.
-Shipping costs become a consideration when everything must be shipped to a remote site (e.g., housing, heavy equipment, food, labor, etc.)
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*Canada's FALC region is rich in other minerals.
-I bet Urban hasn't forgotten this fact.
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Last but not least, don't forget that little old CMKX has hundreds of surveyed and filtered anomalies on the claims it controls. Patience is the only missing ingredient!!!
Good Luck and it's all speculation
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB00206&read=12648
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