NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

Thanks, Andy

Yes, reverse takeover by a proper business would be my good - I wouldn't mind EPD doing it, even though they have not performed so well, I have more confidence they will come good at some stage. They could be quite a good fit.
sd

also thanks takahe - the name doesn't sound to promising, as you say normally of the opposite persuasion, but he just might be right!
sd

stockdog,

Well I sincerely doubt whether it will be EPD, as thay are busy with minestart in Lesotho, and they have their own finances to sort out, as they have experienced some delays too.

To be quite honest, the only realistic JV would be a miner such as Petra/BHP, already nearby in Angola, and where economies of scale could come into play.

The favourite possibility seems to be a company not already quoted in London buying out NML in order to gain their AIM listing, saving time and legal costs.

Stockdog...as you know, the direction the company has taken is high risk/high reward. I have made my feelings on the matter clear, as I have said here, before, to the company.If they pull it off, good on them...if not, they are back to the alluvials and will be short of dosh.Healy is trying to do a Petra and I wish them good luck with it.I hope they have good judgement, as well as good luck!
It's that Aussie gambling streak!!

Or they have access to information gathered in the past. Either way the kimberlite is a likely source for the alluvials as I remember. Maybe it's not as much of a 'gamble' as some assume............

High risk...........very high reward if it comes off.

Certainly worth a punt at least?

stringy,

They don't, as yet, have a licence to mine the kimberlite.

Only around 1% of the kimberlites in the world are commercially viable, so it certainly IS a gamble, IMHO!

Worth a punt?

IMHO, Not until they have financed IMO, as dilution is possible, even likely I would think, and the recent weakness suggests a placing could be discounted, so patience may pay off for anyone considering a gamble.

Personally I think there are better AIM diamond juniors around, albeit offering less potential reward, but certainly offering existing PRODUCTION, and therefore, less risk.

My personal favourites are Firestone Diamonds (FDI), BDI Mining, European Dimaonds (EPD), and Mano River.

Andy,

Watching EPD very closely. Undervalued imo.

I believe this kimberlite will be shown to be diamond bearing. I don't have the figure for the ratio of diamond bearing kimberlite to economically viable kimberlite to go on though. The ratio you've provided I am aware of.

Only have a small stake here. Tempted to top up but it would break my rules of risk exposure and i have only ever done that to my cost so far.

stringy,

Very wise! (IMO)

The kimberlite may well be diamond bearing, and even commercially viable, but as yet, nobody has a licence to mine it, and others are watching with covetous eyes apparently!

I agree EPD looks undervalued, although i'm currently out until they too sort out their finances, which I believe they will.

stockdog, stringy,

I have extraceted a couple of paragraphs from a post on another BB, that emphasise the risk involved here IMO.

---------------------------------------

September 16, 2005, 13:45

De Beers, the diamond giant, says it wants to move quickly to sample potential diamond bearing rocks in Angola. It has, nonetheless, warned that it will take years to begin production, less than a month after re-opening its office in the war-torn country. "It's very difficult to say how long it's going to take," Charles Skinner, the general manager of De Beers Angola, has said.


The country's rivers contain massive alluvial diamond deposits that have been washed over several millennia. However, geologists have yet to find major gem deposits in shafts of volcanic rock, known as kimberlites, that originally carried the stones up from where they are formed deep underground.

Drilling rigs

De Beers is bringing in several large exploration drilling rigs to begin sampling the kimberlites, but first they will have to dig through some 200m of sand, Skinner said. Aircrafts with special detection systems are looking for more kimberlites, he added. "Normally, only one in 100 kimberlite pipes is a mine," Skinner said. "But in Angola, it's probably a lot higher. The rivers are flush with diamonds and they must have come from somewhere."

---------------------------------------

"However, geologists have yet to find major gem deposits in shafts of volcanic rock, known as kimberlites"


I would imagine some Petra holders may find that statement interesting!

Does anyone have a figure for the ratio of diamond bearing to commercially viable kimberlite sources?

I'm sure I found it once but can't remember the figure........not being lazy, just time at a premium at the mo.

stringy..this article gives it as 1%
"kimberlite is a likely source for the alluvials "...lol..sure you understand this business ?

De Beers, the diamond giant, says it wants to move quickly to sample potential diamond bearing rocks in Angola. It has, nonetheless, warned that it will take years to begin production, less than a month after re-opening its office in the war-torn country. "It's very difficult to say how long it's going to take," Charles Skinner, the general manager of De Beers Angola, has said.

De Beers, which is 45% owned by London-listed miner Anglo-American, pulled out of Angola in 2001 after the government demanded it renegotiate its concessions. Skinner said De Beers is moving fast to complete exploration in its concession area. "You've got to build a team from scratch. But if I have anything to do with it we're going to do it in record time," he said.

Rising global diamond prices, limited supply and the end of Angola's 27-year civil war, has sent exploration companies flocking to Angola. Already sub-Saharan Africa's second-largest oil producer, Angola is also seen as potentially one of the world's biggest gem producers.

The country's rivers contain massive alluvial diamond deposits that have been washed over several millennia. However, geologists have yet to find major gem deposits in shafts of volcanic rock, known as kimberlites, that originally carried the stones up from where they are formed deep underground.

De Beers holds a concession to explore 3 000sqkm of Angola's diamond-rich north east, all the government would allow it to keep out of a pre-2001 concession totalling 66 000sqkm. Skinner was, however, optimistic that De Beers would find what it was looking for. "We went for the area where we knew we had 50 kimberlites," he said.

Drilling rigs
De Beers is bringing in several large exploration drilling rigs to begin sampling the kimberlites, but first they will have to dig through some 200m of sand, Skinner said. Aircrafts with special detection systems are looking for more kimberlites, he added. "Normally, only one in 100 kimberlite pipes is a mine," Skinner said. "But in Angola, it's probably a lot higher. The rivers are flush with diamonds and they must have come from somewhere."

It would probably take two to three years to complete surveying the concession area and then another two years or so to clear the sand to create a firm base for mining operations, Skinner added. "Nobody has ever done this before," he said. "No-one's ever gone looking for, or tried to mine, kimberlites under 200m of sand. We'd love to find some shallower, but until we do we're stuck with what we've got."

De Beers will own 49% of exploration and mining operations and the rest will belong to state diamond firm Endiama. Battle damage and neglect has left Angola's road and rail network all but destroyed, leaving communities isolated, food shortages rife and commercial agriculture in ruins.

If De Beers found a mine, it would likely have to help rebuild the road network to the diamond rich Lunda provinces, Skinner said. "Oil is basically an offshore industry," Skinner said. "It's mining that is going to contribute most to the development of Angola's interior." - Reuters

Stringy,

It is extremely low, Botswana has a higher chance of success, and the article above suggests Angolan kimberlites have a better chance too.

takahe,

I suggest you read my question again.

I have already stated that I'm well aware of the ratio of commercially viable kimberlites to non.

My question was what percentage/ratio of DIAMOND BEARING kimberlites are commercially viable.

Gold star for the most interesting thread of the day (give us a break from SEO, streuth!) Thanks for the thoughts and info Andy, Takahe, Stringy.

sd

stringy,

Don't worry, I understood what you meant!

It's one percent, although they THINK there's a better chance than that in Angola, as the De Beers quote from the article suggests;

----------
""Normally, only one in 100 kimberlite pipes is a mine," Skinner said. "But in Angola, it's probably a lot higher."
----------

So even De Beers aren't sure at this point, and it's interesting that even Petra haven't declared the grades for their nearby kimberlite!

stockdog,

Thanks, it's nice to have a proper exchange of views, after all the market needs both bulls and bears.

Still no answer then?

So far all I have found is this piece-

"De Beers' current 47 million carats of diamonds a year are now sourced entirely from South Africa, Namibia, Botswana and Tanzania or bought from Russia's state-owned diamond company.

Recent exploration in Angola had also shown the presence of more than 60 shafts of kimberlite, the volcanic rock that pushes diamonds close to the surface, she said. On average, experts say one in 10 kimberlite pipes can be mined."

So 1 in 10 for Angola. I wonder what percentage of diamond bearing kimberlites in Angola are economically viable?

Answers on a postcard please!

stringy....I understand your question. I had to ask about it myself recently and Andy ,and an article I've read ,say it's about one per cent. I know that seems very low...but that's what it seems to be.For Angola, it may be higher but no real idea because it is in its 'infancy' after all the wars etc...

Stringy..some interesting info here..http://www.mbendi.co.za/indy/ming/dmnd/af/an/p0005.htm