Diamond Cap Share Discussion Threads

[energyi] 06/3/2006 12:23

John Kaiser also tracks...

Grizzly Diamonds
Forest Gate
Archon
Snowfield
Dianor
Vaaldiam

[rambutan2] 01/3/2006 00:39

worthwhile piece in ft (pg10) on tues - wide ranging interview with De Beers soon to retire md gary ralfe - headlined "Diamond Profits Are Not For Ever".

[energyi] 28/2/2006 19:52

GGL Diamond's Doyle sill has gem-quality diamonds


2006-02-14 20:04 ET - News Release

Mr. Raymond Hrkac reports

GGL DIAMOND CORP.: DOYLE SILL INCLUDE GEM QUALITY DIAMONDS

GGL Diamond Corp. has released diamond results from the Doyle kimberlite sill.

A 45,526.5-kilogram (45.526-tonne) sample was taken from the Doyle kimberlite sill to evaluate its diamond potential. The sample was taken from a single surface pit located at the northeastern edge of the kimberlite at the suboutcrop of the sill. The Doyle kimberlite sill has been traced for a strike length of two kilometres and down-dip for 820 metres, the kimberlite remains open to extension.

The sample was analyzed by Ashton Mining of Canada at its North Vancouver laboratory, where it underwent standard crushing, washing, dense media separation (DMS) and recovery of commercial-sized diamonds. Portions of each DMS treatment and diamond recovery procedure were observed by Howard Coopersmith, PGeol, diamond consultant and qualified person for GGL Diamond.

The 45.5-tonne kimberlite sample was divided into three subsamples. The following table was provided by Ashton's laboratory and summarizes the DMS diamond results by subsample, expressed in Tyler Sieve distribution.


DOYLE DIAMOND RESULTS

Number of diamonds
+0.85 +1.18 +1.7 +2.36 +3.35
-1.18 -1.7 -2.36 -3.35 -4.75
mm mm mm mm mm

DMA sample: 11104
Measured weight (kg): 16,142.5
6 19 6 0 1

DMA Sample: 11105
Measured weight (kg): 15,740.5
2 14 9 0 1

DMA sample: 11106
Measured weight (kg): 13,643.5
3 20 7 2 0

Total
measured weight (kg): 45,526.5
11 53 22 2 2

DOYLE DIAMOND RESULTS

Total Est.
No. No. diam-
of of Total ond
dia- diam- carat cont-
monds onds weight ent
+4.75 +1.18 +1.18- (+1.18)
-6.7 -6.7 6.7 (cpht)
mm mm mm (i)

DMA sample: 11104
Measured weight (kg): 16,142.5
0 26 2.355 14.59

DMA sample: 11105
Measured weight (kg): 15,740.5
0 24 2.020 12.83

DMA sample: 11106
Measured weight (kg): 13,643.5
0 29 1.780 13.05

Total
measured weight (kg): 45,526.5
0 79 6.155 13.52


(i) Cpht equals carats per hundred tonne

Howard Coopersmith stated that the sample results reported are of high integrity and are believed to accurately represent the sampled kimberlite from the Doyle kimberlite sill. He also reported that diamond recovery results returned a composite total of approximately 6.2 carats of commercially sized diamonds from 45.5 tonnes of sample material, for a calculated grade of 0.135 carat per tonne. Mr. Coopersmith reports that the largest diamonds are a 1.25-carat offwhite industrial stone and a 0.83-carat colourless clean tetrahexahedral crystal of high gem value. The bulk sample from the Doyle kimberlite sill produced a modest grade of diamonds and significant commercial stones from a small tonnage.

Although the diamonds have not been valued, it is unlikely that the material tested is economic. However, the presence of gem-quality diamonds from one location within the extensive, two kilometres by approximately one kilometre, sheet of kimberlite would suggest that further evaluation may be necessary

@:

[energyi] 09/2/2006 06:36

Dwyka's shares jumped more than ten per cent on 6th February after the company announced the recovery of a nice little parcel of diamonds from its Bosele exploration project near Kimberley. It's not easy to imagine that any stones have been left unturned (or unfound) in that region as De Beers' dominance there is almost total. Diamonds in and around Kimberley made De Beers what it is today. But the clue to the potential at Bosele lies in the name of Kimberley itself. The town and the diamond-hosting ore kimberlite were both named after John Wodehouse, first earl of Kimberley, at the latter end of the nineteenth century. In the subsequent 120 years no kimberlite in the vicinity of Kimberley has escaped De Beers's attention. But Dwyka thinks it's found a lamproite, and that's another matter. Lamproite is the other main host ore for diamonds, and though much rarer than kimberlite, it has the potential to be just as rich.

There's only one major producing lamproite mine in the world, Rio Tinto's Argyle Mine in Western Australia. Intriguingly that's a mine that Dwyka non-executive Ed Nealon worked on in the 1980s. At the Kimberley Club in Kimberley on 5th February – ahead of this year's Indaba - Dwyka gave a presentation to major investors, analysts and the press, in which Mr Nealon stated quite clearly that: "the geology on Bosele is the same as Argyle". There's a long way to go yet on Bosele, of course, though the following Monday an announcement about the diamonds discovered there woke up the market, which has been fairly apathetic towards Dwyka's shares over recent months. Dwyka was up 12 per cent to 32.5p on the day. Bosele caught the imagination of those present at the Kimberley presentation too, and more questions were asked about potential there than about Dwyka's other operations, all of which are less glamorous, but in their own way – given the statistics on discovering economic pipes - much more viable.

Over the years Dwyka chairman Melissa Sturges has certainly put in the work to keep the company going. Delays on one project or another have kept her up late into the night on numerous occasions, reassuring anxious moneymen in several different time zones. There was the failed deal over fissure specialists Crown Diamonds too – Crown's now part of Adonis Pouroulis's growing empire. But Dwyka soldiered on. With production from its core Nooitgedacht project increasing to 120,000 carats per year, and recent acquisitions Blaauwbosch, New Elands and Newlands all now on stream Dwyka is now, in the rather hushed and awed words of Williams de Broe salesman James Pettman, "beginning to look like a real company". Throw in around $5m in sales from the Supermix brick-making division, and a likely 60,000 carat per annum production boost from the company's De Beers joint venture to re-treat tailings, and for a small Aim quoted diamond miner, Dwyka's future cash flow looks second to none. Detailed research from Ambrian analyst Richard Chase is due out within the next couple of weeks - part of a larger Ambrian survey of the industry as a whole.

Prior to Mr Nealon's brief assessment of Bosele, new chief executive Nick Griffin had been giving the pesentation. He wasn't overly keen to talk up Bosele, and remarked that it wasn't in Dwyka's plan to go big game hunting for any more new diamond pipes. Advanced stage projects are of more interest, ones similar to the De Beers joint venture and last year's acquisitions. Subsequent to the presentation a tour of Nooitgedacht and the De Beers Tailings joint venture elicited approval from the institutional investors present, with several remarking on significant progress since previous visits, and most expressing general approval of the new chief. At a dinner in the evening, though, it was remarked that Mr Griffin seemed overly fond of the word "potential". Concensus was that "potential" was no longer of the utmost importance. What investors want to see now is delivery.

[energyi] 20/1/2006 22:41

Good.
It is a better buy with the placement out of the way

[andy] 20/1/2006 21:45

energyi,

They had a £4.5 million placing this week.


African Diamonds PLC
16 January 2006


African Diamonds PLC

African Diamonds plc is pleased to announce that it has finalised a placing of
7,125,000, new ordinary 1p shares at a price of 63p, raising a total of
£4,488,750 from institutional investors.

The funds will primarily be used to continue and expand the exploration and
development activities of the Company in Botswana.

Application has been made for the new shares to be admitted to AIM and it is
expected that admission will take place and dealings will commence on 19 January
2006.

[skiboy10] 20/1/2006 21:44

Yes they raised £4.5M on Monday from institutions



The broker note was released today/yesterday

[energyi] 20/1/2006 21:36

AFD with a new brokers report... hmmm

Could there be a financing coming soon?

[bitterlemontart] 20/1/2006 21:22

Subject: AFRICAN DIAMONDS 74p BUY target 120p Drilling results from diamond pipe indicate potential for new diamond mine



> AFRICAN DIAMONDS 74p BUY target 120p Drilling results from diamond pipe indicate potential for new diamond mine

> No previous recommendation Market cap £46m
>
> African Diamonds continues to report impressive diamond grades from its bulk drilling program in Botswana. The latest results report the recovery of 789 macro diamonds weighing 61.34 carats out of a 284tonne sample of kimberlite ore from the AK6 diamond pipe. The pipe being tested is located relatively near to the Orapa diamond mine which is operated by De Beers and is recognised as one of the world's richest diamond mines.
>
> Originally the AK6 diamond pipe was seen by De Beers as too small to be of great interest despite its location near to such rich diamond producing mines as Orapa and Jwaneng. However, it appears that a large, intrusive calcrete sill had masked the true size of the kimberlite pipe and that the scale of the pipe may enable economic diamond mining in future years.
>
> So far the results obtained from the latest bulk sampling drilling program appear sufficiently consistent and the grade of 21.5 carats per hundred tonnes from this latest wide-diameter drill hole indicate potential for economic extraction in future years depending on the average value per carat obtained.
>
> We are impressed by the results obtained to date and will continue to follow the results closely. Our target price is a medium term, subjective estimation and does not represent an estimation of the potential value of the eventual mine which could be far higher than our target price might suggest.
>
> ANALYSTS: JOHN MEYER / SIMON BEARDSMORE

NUMIS STOCKBROKERS

[rambutan2] 11/1/2006 11:36

hated in canada, not traded on aim, 12% purchased by bhp at way above current share price, and with 2 world class sets of assets - congo land and angolan project - as well as other promising stuff in canada and africa. balance sheet not the best, but not the worst. production potential within 12-18mths perhaps. sounds like a good time to buy some. imho a better bet than petra!

[energyi] 11/1/2006 07:25

Meanwhile in the Diamond sector, SouthernEra, listed on the TSX under SDM and on AIM under SRE has closed its private placement with BHP Billiton, raising US8 million and giving BHPB a 12% holding in the company and thus becoming the largest shareholder. Half of the proceeds will be used to fund exploration for primary diamonds and all other minerals within Southern Era's 13,000 square kilometres of permits in the Democratic Republic of the Congo. Once these moneys have been fully utilised, BHPB will fully fund exploration up to and including the completion of a pre-feasibility study, thus earning a 50% interest in the project. Full funding of a bankable feasibility study will earn BHPB a further 15%, although SouthernEra will keep the rights to all alluvial diamonds. The remaining $4 million will be used to support Southern Era's global exploration and development programme and for general corporate purposes.

[energyi] 09/1/2006 21:53

Firestone (FDI) tends to make bottoms at the turn-of-the-year

[energyi] 06/1/2006 09:13

How a broker values Petra...

Sum-of-the-Parts Valuation
Value of Assets--------------- (£m) Per Share (p)
South African Producing Assets 46.8 : 31.6
Kono Near-Production Assets... 25.4 : 17.2
Alto Cuilo.................... 66.5 : 44.9
Kalahari...................... 11.9 :. 8.0
Total Value of Assets........ 150.7 :101.7
Total Cash Position............ 8.1 :. 5.4
Total Debt Position........... (3.7): (2.5)
Total Value of Equity........ 155.0 :104.6
Total No.Shares (m,Undiluted) 148.1
SotP Value per Share..... (p) 104.6

Notes:
As a benchmark for comparison, we have taken a market-accepted
valuation range of US$200-400 per square kilometre of tenure, which
has been calculated from various joint venture earn-in requirements,
sales and previous independent expert reports. The table below sets
out the value range for Kalahari¡¦s tenure in Botswana.

Market Accepted Valuation for Kalahari Tenure
Tenure Area (km2) @US$200/km2 @US$400/km2
Botswana.. 77,000 : US$15.4m : US$30.8m

For Angola, and specifically the Alto Cuilo project, we believe that it
is sufficiently advanced, with the definition of a 115Mt deposit, to be
able to build a DCF model. Although no grades or values of stones
have been announced for this initial discovery, sampling on a
kimberlite some 500m away, with a 125 hectare footprint, returned a
grade of 47cpht and a stone value of between US$200 and US$295
per carat (this sample included a high-value 9ct stone). Using this as
a guide, we calculate the initial discovery to be worth US$113m net
to Petra,

[energyi] 02/1/2006 10:33

CHEMICAL COMPOSITION: . . . . . . SHARE OF TOTAL VALUE
of the Earth's Crust: . . . . . . of Mined Production*
===================== . . . . . . ====================
Zinc-- .. 0.0081% ... . . . . . . Metals---------- 35%
Copper .. 0.0050% ... . . . . . . Coal------------ 33%
Lead-- .. 0.0013% ... . . . . . . Aggregates------ 10%
Tin--- .. 0.00016000% . . . . . . Industrial min'ls 9%
Silver .. 0.00000650% . . . . . . Diamonds--------- 3%
Gold-- .. 0.00000035% . . . . . . *recent averages
per:Billiton Minerals

per: "The Ultimate Gold stock trader", 2005 PBS Publishing

[energyi] 13/12/2005 16:40

WORLD DIAMOND PRODUCTION (2004)
.............. Weight Rank : Value Rank : Average
============== Mn.Ct. ==== : $mn.s ==== : per ct.
Botswanna..... 31.1 , # 2. : 2,573, # 1
Russia........ 37.0e, # 1. : 1,860, # 2
Canada........ 11.8 , # 6. : 1,345, # 3
South Africa.. 13.7 , # 5. : 1,154, # 4
Angola......... 8.0e, # 7. : 1,120, # 5
Congo (DRC)... 27.0e, # 3. : 1,080, # 6
Namibia........ 1.9 , # 8. : 0 576, # 7
Australia..... 20.6 , # 9. : 0 270, # 8
Other.......... 6.0e, # 4. : o 630, # 9
TOTAL======== 157.0 ,..... :10,600, ... :

source: The Search for Diamonds, Bram Janse.
in Analysis, pg.46-47, World Mining Stocks, Nov.2005, #3

[energyi] 01/12/2005 15:35

Peregrine
Dentonia (v.DTA): 46340
..
Kettle River (v.KRR): 47475
..
Horseshoe Gold (??)

[energyi] 01/12/2005 14:34

(thnx to Amomolous- Nov.2005)