In my opinion, CMKX's diamondiferous kimberlite was a very carefully orchestrated scam from the start. Here's why:
The stock was dying in .0001 land, mostly because of no money for exploration, and the shady history of management. The well is dry - too many con jobs to attract interest, Suddenly, a "long-time" investor appears with deep pockets. That investor is a heavy equipment owner who already has lost tons of money on this dog.
A scheme is hatched: the large investor is offered a chance to make his money back. CMKX increases its A/S to 500 billion shares. In return for billions of shares, he will supply a drill and excavating equipment, which CMKX will pass off as their own. Since all other exploration programs have failed for lack of funds, targets, etc., what will they drill?
CMKX goes to longtime friend Rick Walker, who operates a number of small, albeit legitimate exploration companies on the Canadian TSX Venture Exchange. One of his companies had aquired a small kimberlite body in the 1990's near Smeaton, Saskatchewan. The reason it was available is that the previous operator, Saskatchewan Diamond Syndicate, dropped the property.
Why would anyone drop a diamondiferous kimberlite? Well folks, there are hundreds of them in the world, and if you knew the percentage of the ones that were actually mineable, and the money it takes to put them into production, you probably wouldn't be investing in them. The Smeaton kimberlite, known as the Smeaton RS-1, has such poor diamond geochemistry, diamond grades and preservation, and small overall size, that the SDS doesn't think it deservees a second look.
This doesn't stop Rick Walker though, and through United Carina, he does more geophysics and drills 4 holes with large diameter casing. The mini-bulk sample is sent to the lab with results promised "as soon as they are available". This was 1998. The results still have not been released, but were filed with Industry and Resources. It's now apparent that the Smeaton RS-1 body is not mineable, although it does contain a few poorly preserved microdiamonds. The property is again mothballed.
A plan is hatched by CMKX: make a deal with Walker to re-drill the Smeaton RS-1 kimberlite, re-name it the "Carolyn Pipe" and pass it off as a new discovery. The USA is full of naive investors that know nothing of his shady past, let alone anything about G10's and diamond geochemistry. For good measure, dump 100's of $thousands into a race car with CMKX's name on it.
We're at the next stage: Put out a news release saying that the lab has confirmed diamonds are present in the core. Well technically true, the release says more for what it leaves out. They already knew there were diamonds, and had this planned from the start. More suckers are drawn in. They know nothing about the size, grade, preservation, and quality of the diamonds. And the CMKX printing press is off to the races again (sorry - play on words).
Do I think it's a scam? ...well duh! Will it go higher? Probably. just be ready to bail.
Northern Saskatchewan Fire:
