Issue link: http://resourceworld.uberflip.com/i/460990
22 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 5 PDAC Convention Booth # 2730 BUILDING A LANDPLAY FOCUSED ON CHILE Revelo Resources is a Canadian based exploration company focused on the acquisition and exploration of world-class mineral systems in Chile. www.reveloresources.com favourable diamond indicator minerals and hopefully (but rarely) diamonds. The next stage of encouragement is an initial bulk sample with diamonds – but not just micro diamonds. They need to be of sufficient size and quality to make them of economic interest. The next stage of obtaining a large bulk sample is critical as it must deliver diamonds of quality, size and in sufficient numbers to make mining, processing, cut- ting and polishing a viable operation. In addition to the four operating dia- mond mines in Canada, there are two diamond mines in the development/con- struction phase; Gahcho Kue in the NWT and Renard in Québec. Both are well financed and geared to production in 2016 and 2017 respectively. Gahcho Kue is a Mountain Province/DeBeers JV and Renard is 100% owned by stornoway Diamonds [SWY-TSX]. From an investment standpoint the Gahcho Kue Project has generated a staking rush in the vicinity of the deposit, 300 km northeast of Yellowknife. shore Gold Inc. [SGF-TSX] recently received environmental approval for its advanced $2 billion Star-Orion South dia- mond project at Fort à la Corne, 60 km east of Prince Albert, Saskatchewan. Feasibility study highlights include probable reserves of 279 million tonnes grading 12.3 cpht at US $242/carat for 34.4 million carats. Post- Tax & Royalty NPV (7%) is $1.3 billion with an IRR of 14% over a 20-year mine life. The company is considering ways to improve these numbers. Whereas the current producing diamond mines are all located in remote parts of Canada, the Shore Project has all year access and in-place infrastructure. Although of low-grade, the diamonds have a high carat value giving the project potential in light of forecasted diamond demand. Schiller notes that to assess a company involved in diamond exploration one needs to look at their project or projects in terms of published data on the dollar value of diamond quality and quantity as well as their ability to execute an exploration pro- gram to find a mineable deposit. Once a company has completed a PEA or feasibility study, it can be evaluated like other proposed mining projects. n