Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 5 www.resourceworld.com 23 b r o k e r ' s p i c k s S h a y n e N y q u v e s t J oint Venture partners, Canterra Minerals [CTM-TSXV] and Margaret Lake Diamonds [DIA-TSXV] have dis- covered a 1.0 by 1.0 by 1.4 mm off-white, modified octahedral diamond, as well as several anomalous indicator minerals on the Marlin property located about 220 km northwest of Yellowknife, Northwest Territories. (See related article page 30) Finding a diamond in a till sampling program is a very rare occurrence and may indicate there is a diamond-bearing kimberlite nearby. This is an exciting development for both companies who are focused on diamond exploration in the area between the Gahcho Kué and Snap Lake Diamond deposits. I believe there are only a handful of companies well positioned for the next big diamond discovery in the Northwest Territories and Canterra Minerals and Margaret Lake Diamonds are two of those companies. Canterra is led by Randy Turner whose notable career achievements include guiding Winspear Diamonds from the dis- covery of the Snap Lake diamond deposit through to its sale to De Beers for $305 million. Canterra (formerly Diamondex) inher- ited an extensive library of valuable exploration data from Winspear Resources after it was acquired by De Beers in 2000. Canterra has spent 15 years amass- ing a large proprietary data set covering much of the southern portion of the Slave Geological Province. A re-analysis of this data, using new advances in technology and techniques has been used to acquire properties that host numerous, very prom- ising, diamond targets near the Gahcho Kué and Snap Lake diamond deposits. Over 26,000 till samples make up part of this valuable database. Turner states that to his knowledge, only three diamonds have been found in these till samples, and one of them comes from the Marlin property. Margaret Lake Diamonds is led by Mining Engineer, Analyst and Investor, Paul Brockington, who has over 50 years in the mineral business and was one of the first analysts to value Dia Met, prior to its Ekati diamond discovery. Brockington has a knack for identifying and acquiring large positions in early-staged companies. His successes included Dia Met Minerals, Aber Resources and more recently Lucara Diamond, Mountain Province and Kennady Lake Diamonds, all of which have returned handsome returns for early inves- tors. At the age of 71, Brockington had no need to become the CEO of a public com- pany, but nevertheless he was enticed to Margaret Lake Diamonds after realizing the opportunity the company's namesake property presented. Buddy Doyle also joined the Margaret Lake team and sits as Director and VP of Exploration. Doyle led the team that dis- covered the Diavik diamond deposits in 1994-1995 and is recognized by his peers in the exploration industry as an author- ity on diamond exploration and kimberlite geology. Together, the Canterra and Margaret Lake management teams have been involved in the discovery of three of Canada's four producing diamond mines; Snap Lake, Diavik and Ekati. Those are the kind of people I am excited to bet on. The 26,000-hectare Marlin property lies along the north and west margins of Kennady Diamond's property which hosts a number of high-grade, diamond-bearing, kimberlite pipes. Glacial ice directions indicate the diamond found on the Marlin property was not sourced from any of pipes on Kennady Diamond's property. In addition to an extensive till sampling program, exploration on the northern portion Marlin property has included a detailed HeliFALCON gravity gradiometer survey combined with an airborne mag- netic survey. These methods have proven very effective in identifying kimberlite targets and were instrumental in the dis- covery of the Kelvin and Faraday diamond pipes on Kennady Diamond's property. Additional results from the till sampling program, as well as the airborne gravity survey are expected in the fourth quarter of 2014. The partners anticipate that the compilation of the subsequent data will identify and prioritize potential drill tar- gets for future exploration programs. Canterra and Margaret Lake currently have market capitalizations of just $6.7 million and $5.0 million, respectively. Any new diamond discovery in the region should have a significant impact these companies. n The information in this article does not con- stitute a research report. This article is solely the work of its author, Shayne Nyquvest, a registered Investment Advisor at Jordan Capital Markets Inc., a member of both the Investment Industry Regulatory Organization of Canada ("IIROC") and the Canadian Investor Protection Fund ("CIPF"). The views (including recommendations) expressed in it are those of the author alone, and are not necessarily those of Jordan Capital Markets. The information contained herein is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the author or Jordan Capital Markets assume any liability. At this time the author does own shares in Canterra Minerals and Margaret Lake Diamonds. Canterra and Margaret Lake well positioned for diamond discoveries

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