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Message: updated coverage on swy/diamond

updated coverage on swy/diamond

posted on Jan 08, 2010 10:14AM
Surplus of information on Diamonds in General, and then Stornoway, Lucero as Buy targets and Peregrine added to watch list.
Upside Potential, from estimated NAV of $1.09 a share are the following
1. Good Potential to increase overall resource further. Renard 4 and 65 have the same geological history and has not been drilled at depths. This can add huge tonnage and grade.This would add to mine life from what will be reported in the 43-101
2. Also upside potential from the Lynx and Hibou Dykes. These range 1-3 meters and run 5K. Limited testing done.
3. Should the revised PEA and Feasibility meet Cormark expectations, the increase value of Renard could move to $1.60.
4. Grades and Value may be understimated due to breakage. RC drill is known to cause diamond breakage, reducing grade by 15-38%. This again would increase the valuation by .12.
regards Jim
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