Sabina files a feasibility study on Back River. [Sabina Gold & Silver] A great project waiting for its time. Now at 5.3M oz Au (28Mt @ 5.87 g/t Au [M&I]) – mostly open pittable. A resource is worthless without a promoter with the horsepower and skill to move it along; Bruce McLeod seems to have made a real difference since taking over last winter. Now – if he can just get the $!%@ stock back up to where I bought it….
“Patrick Evan’s Kennady Diamonds Inc. (KDI), up four cents to $2.89 on 80,000 shares is wrapping up its 2015 drill program at Kelvin and Faraday, 10 kilometres northeast of Gahcho Kue. The company has upped its tonnage target yet again, this time to between 13 million and 16 million tonnes, based on the results of the drilling to date. Most of the kimberlite lies within the Kelvin pipe, which produced another in a string of lengthy drill hits just before the company pulled out its drill ahead of the winter freeze. Drilling at Kelvin’s sister pipe, Faraday, continues to yield less substantial intervals; the latest hits running between 10 and 30 metres. Ice is not a concern at Faraday, so the drilling will continue until the days grow unworkably short around the end of November.
With a grade potentially topping two carats per tonne, Kennady could be looking at over 30 million carats in the two pipes. Unfortunately, the recently calculated diamond valuations raise questions about whether Kelvin and Faraday can support a mine on their own. The nearly 1,000 carats recovered from Kelvin so far have an average modelled value substantially less than the $118 (U.S.) per carat derived at Gahcho Kue. Kennady’s diamond appraisers, WWW International Diamond Consultants Ltd., say the value of the diamonds in Zone A of Kelvin are worth $56 (U.S.) per carat and those in Zone B are modelled at $70 (U.S.) per carat. For the tiny parcel of Zone C diamonds, WWW gave only an appraised value: $123 (U.S.) per carat. That appraisal was inflated by a few good gems.
Larger samples could bring higher valuations for the two other zones as well but proving the point will take larger samples — and that will take a lot of cash. Kennady’s sister company, Mountain Province Diamonds Inc. (MPV: $x.xx), and De Beers Canada collected several bulk tests of the Gahcho Kue pipes from the late 1990s until the mid-2000s before they found the two exceptional gems that boosted appraised parcel valuations by about 50 per cent. (That work took many millions of dollars and for a time De Beers’s faith in Gahcho Kue seemed wobbly at times.) Mr. Evans is already planning another mini-bulk test at Kelvin next year and his backers are undoubtedly hoping an exceptional gem turns up sooner rather than later. Unless the diamond values improve, Kelvin and Faraday may wind up as feed late in the life of Gahcho Kue — perhaps not until the 2030s.”