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Friday, 12/05/2003 1:21:42 PM

Friday, December 05, 2003 1:21:42 PM

Post# of 474
7 Important Diamond Mine Answers!

1) What is lower and upper total for Mt, Millions of tonnes of Kimberlite in an existing diamond mine?
Lower – 22.8 Mt Snap Lake, Thank you, Deann!
Link: http://216.239.41.104/search?q=cache:JWAoGT4PNWcJ:www.debeerscanada.com/files/snaplake_permit.pdf+ki...
Higher – 377 Mt Derived from the Argyle Mine, already processed 200 Mt, Dan
Link: http://www.mining-technology.com/projects/argyle/
Average: 147 Mt Derived, Thank you Cakpm!
Note: Pipes vary widely in diameter and some are dykes, horizontally flat, & sills, vertically flat. The size of the pipe usually has more to do with how much it has weathered down from the top.

2) What is the lower and upper cpht, Carats per Hundred Tonnes, of existing Diamond Mines?
Lower – .5 cpht For Onea Mine, but has $880 per carat, Thank you Deann!
Link: http://www.etruscan.com/lsiwebsite/news/HNR041503.htm
Higher – 600 cpht Argyle Mine, Thank you Cakpm!
Link: http://www.first-strike-diamonds.com/diamonds/mines.html
Extreme High - 600cpht Small pipe in Siberia near the Mir Diamond Mine, only lasted two years though. Thank you Shadera!
Average: 85 cpht De Beers South Africa, Thank you Deann!
Note: The cpht goes from 0cpht to 600cpht. For it to be mineable you can only have a low cpht if your price per carat is high. So, for average price per carat you need average cpht.

3) What is the lower and upper dollar amount for the Average Rough Carat Dollar Value?
Lower - $11.50 Argyle Mine, Dan
Link: http://www.diamondsview.com/ed_39_oct.htm
Higher - $872 For Oena Mine, Thank you Deann!
Link: http://www.firestonediamonds.com/press/pr03071800.html
Extreme High: $1,000,000 A carat for Argyle Mine Lamporite Pink Diamonds. And we have a Lamporite Pipe. Dan
Link; http://www.247k.com.au/products.php/argyle/
Average: $71 Thank you Ralph & A2Gems
http://www.mips1.net/MGDmds.nsf/0/4225685F0043D03842256AF0004B2240?OpenDocument
Note: The rough carat dollar amount is determined by gemologist using clarity & color. After they are cut, the price is determined by the four C’s of diamonds;
http://www.engagmentrings.net/fourcs.html

4) What is the lower and upper Costs to Initially Build a Diamond Mine?
Lower - $55,000,000 Jericho Mine. Thank you Dean!
Link: http://www.nnsl.com/ops/Mining_03/jun27_03tah.html
Higher - $1,000,000,000 Diavik Diamond Mine. Thank you Shadera!
Link: http://www.mips1.net/MGDmds.nsf/0/422567D90045460D80256890007FCFA8?OpenDocument
Average: $300,000,000 Dan
Note: This varies by type of mine: open pit, underground , & alluvial (dirt). Also by distance to road and weather conditions. And if it is under a lake you dam costs. And finally by local economy.

5) What is the lower and upper Costs to Mine a Tonne of Kimberlite.
Lower - $12 For FALC diamonds, Thank you Deann!
Link: http://www.investorsguru.com/pmar0997.shtml
Higher - $51 For the Divak Mine, Thank you Deann!
Link: http://www.aber.ca/investor/info/mar698.htm
Average: $25 Dan
Note: The varies for the same reasons as number 4.

6) What is the lower and upper Dollar Value of Diamond Mine.
Lower - $200,000,000 Derived from Marsfontein South Africa, Dan
Link: http://www.eyeworks.co.za/debeers/deb009bd.htm
Higher - $33,000,000,000 Derived From Jwaneng Mine Bostwana, Thank you Cakpm!
Link: http://www.ashton.ca/fundamentals/fundamentals.html
Average: $4,896,450,000 Dan
Note: This varies for the same reasons as numbers 1 through 5.

7) What is the lower and upper Dollar Value of a Tonne of Kimberlite.
Lower - $10 For Premier South Africa, Thank you Cakpm!
Link: http://www.first-strike-diamonds.com/diamonds/mines.html
Higher - $200 For the Kimberly South Africa, Thank you Cakpm!
Link: http://www.first-strike-diamonds.com/diamonds/mines.html
Average: $33.31 Dan
Note: This varies for the same reasons as number 6.

Note: All money is in US dollars and all weights are in metric.

Formula For Dollar Value of Diamond Mine:
(Millions of Tonnes of Kimberlite * 1,000,000 * Carats per Hundred Tonnes / 100 * Average Rough Carat Dollar Value) – (Costs to Initially Build the Diamond Mine) – (Millions of Tonnes of Kimberlite * 1,000,000 * Costs to Mine a Tonne of Kimberlite) = Dollar Value of Diamond Mine

Formula For Dollar Value of a Tonne of Kimberlite:
Dollar Value of Diamond Mine / (Million of Tonnes of Kimberlite * 1,000,000) = Dollar Value of a Tonne of Kimberlite

Example of Formula’s using the averages found on the 7 Questions!

(147Mt * 1,000,000 * 85 cpht / 100 * $71) - ($300,000,000 Cost to Build Mine) – (147Mt * 1,000,000 * $25) = $4,896,450,000 Average Dollar Value of a Diamond Mine

$4,896,450,000 / (147Mt * 1,000,000) = $33.31 Dollar Value of a Tonne of Kimberlite

Thank you for the Good Work on our Quest for the Answers to the 7 Questions. The next stock you could be in could be another diamond stock, and you would know from your knowledge posted on this board whether it was good or bad in a Flash. The average amount is Not based on upper & lower divided by two, but what seems like the average and if you think it should be different than that, let me know, and we will discuss it. The Lower and Higher values and in most cases not the Lowest or the Highest, but a good low and good high.

Put together by Dan Heilman, Copyrighted 2003.




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