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 Mon Sep 13, 1999
Excerpt from Bottom-Fish Action for week of September 6-10, 1999
    Publisher: Kaiser Research Online
    Author: Copyright 1999 John A Kaiser

 Excerpt from Bottom-Fish Action for week of September 6-10, 1999

Major General & Ascot

The market reacted negatively to the micro diamond results for the Victoria Island Snowy Owl pipe of Major General Resources Ltd (MGJ-V: $0.15) and Ascot Resources Ltd (AOT-V: $0.23). Although the counts were high compared to most NWT pipes, they were considerably lower than those of the Snap Lake and Kennady Lake kimberlites. In particular, Snowy Owl compares very poorly in the 0.5-1.00 mm square mesh bracket. In order to be optimistic about a high grade and good size distribution in a future mini bulk sample, we want to see good numbers in this micro diamond size bracket. De Beers has not yet indicated whether it plans to conduct a mini bulk sample next winter. Results from four more kimberlites are still awaited, including two new kimberlite bodies found last winter. That Snowy Owl would not stack up well against the NWT's flagship kimberlites was not unexpected based on results from last year's 88 kg sample. The hope was that a larger sample more representative of the Snowy Owl pipe than last year's shallow hole would produce better numbers. On the bright side, De Beers does appear to have smashed a larger stone into 417 fragments just as Ashton did in 1997 on K14. There have been cases where a kimberlite has a diamond population with a size distribution curve truncated at the small end, with the result that micro diamond analysis would be discouraging. It is also possible to have a blend of two distinct populations, one of which has high micro diamond counts that tail off sharply as the size increases, while the other has a size distribution curve that shows up only with macro diamonds. De Beers may have the science to predict this, but the rest of us prefer to be surprised by a mini bulk sample than grasp at straws. Victoria Island still needs a flagship discovery, just as does northern Alberta. On Friday Major General announced a private placement of 6.7 million units at $0.15 to fund work on its Despinassy, Spider Lake and Newfoundland properties. Work on Victoria Island is funded by De Beers and Dia Met.


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