Tuesday, January 22, 2008 8:39:13 PM
“Dr. Mark Hutchison Interview”
Tom Allinder of HotStockChat interviews Dr. Mark Hutchison, Consulting Geologist for Casavant Mining Kimberlite International (OTCBB-CMKM)Casavant Mining Kimberlite International (OTCBB-CMKM)
Interview and Transcript Link
Interview Date: February 21 2003
Transcript of the Interview
Company Profile
Casavant Mining Kimberlite International, Inc.
CORPORATE SUMMARY
Casavant Mining-Kimberlite International (f/k/a Cyber Mark International Corporation) is engaged in the business of diamond mining in Canada.
In November 2002, the Company made approximately eight acquisitions of which all conclusive there is 1.9 million acres of mining claims, which have been secured by the Company in the Kimberlite area in the Province of Saskatchewan, Canada, known as Fort a la Corne. The Company had been inactive since 2001.
HISTORICAL BUSINESS INFORMATION:
The Company was incorporated under the laws of the State of Delaware on June 9, 1998 to serve as a holding company for CM300. CM300 was incorporated under the laws of the Province of Ontario on January, 1996 and became the Company's wholly-owned subsidiary on the same day that they were incorporated. In April 2002, the Company was reincorporated in the State of Nevada.
· On November 27, 2002, the Company announced that there are approximately eight acquisitions of which all conclusive there is 1.9 million acres of mining claims which have been secured by the Company in the Kimberlite area in the province of Saskatchewan, Canada, known as Fort a la Corne.
· On December 3, 2002, the Company announced that its Board of Directors voted to change the company's name to Casavant Mining-Kimberlite International.
· On January 29, 2003, the Company changed its name to Casavant Mining-Kimberlite International.
Links:
Casavant Mining Kimberlite International's Info on Fort a la Corne
Interesting Info on Diamond Mining in Saskatchewan
Info on Acquisitions by CMKM
Recent Company News, SEC filings, Insider Information etc can be accessed at Yahoo Finance
Interview Transcript
Transcript of Tom Allinder of HotStockChat.com’s Interview with Dr. Mark Hutchison of Casavant Mining Kimberlite International (OTCBB-CMKM)
Tom: Hello and welcome to HotStockChat. This is Tom Allinder. Today my guest is Dr. Mark Hutchison. Dr. Hutchison is a consulting geologist for Casavant Mining Kimberlite International. Casavant Mining Kimberlite International is traded on the OTCBB market under ticker symbol CMKM.
Now, as with all companies that we interview, we want to remind listeners that you will be hearing forward-looking statements during the course of this interview. Therefore, it’s advised that everyone that listens to the interview or reads the transcript, or looks at the profile or anything else on HotStockChat.com, must do their own due diligence and make up their own minds regarding buying the stock of CMKM or any other company that we interview or profile at HotStockChat.com.
So, without further delay – Mark, how are you doing today?
Dr. Hutchison: Hi, I’m doing very well, thank you.
Tom: Can you give our listeners a brief overview of the business of Casavant Mining Kimberlite International?
Dr. Hutchison: I certainly can. Casavant Mining is a U.S. publicly-listed company based out of Nevada and it’s a fairly new company. Principal assets consist of a large mineral claim up in Saskatchewan in Canada. Its leadership involves a number of people who have been players in both mineral and diamond industries in Canada for a number of decades. Most have been private ventures. This is a new, exciting development for the people involved with the company, getting into the public forum.
Tom: Now, the company has acquired 1.9 million acres of land in the diamond district of Saskatchewan and this land surrounds the De Beers-Kensington diamond property and they have 58,000 acres. Is that correct, that the 1.9 million acres surrounds that?
Dr. Hutchison: Yes, that’s broadly correct. There’s actually two principal other players in the area as well as Casavant. The other companies are a joint venture between De Beers-Kensington and Cameco, which is called the Fort à la Corne joint venture. They hold 22,544 hectares, which is about 58,000 acres, as you say. And the other company is a company called Shore Gold, who owns slightly more than 28,000 hectares.
Now, the Casavant properties are significantly larger than these and broadly surround them. They are also directed, or concentrated towards the northwest of the De Beers joint venture area. Now, historically the De Beers joint venture was basically staked and claimed on the basis of information known to them at the time, prospecting techniques which were available to them at the time, which are slightly outdated at the moment. So obviously, like any mining company, they’ve made a focus on a particular area of interest to them. But Casavant has come along at a time where the technology is a little bit more advanced and I’ve been very fortunate in being able to access land surrounding, as you say, the De Beers and also Shore Gold. They are planning to use this technology to delineate kimberlites surrounding the De Beers and the Shore Gold properties.
Tom: All right. Now this land in the Fort à la Corne region, what is the significance of this particular region when it comes to diamonds?
Dr. Hutchison: Well, Fort à la Corne is actually internationally known as being quite an exceptional area for kimberlites and for diamonds. It’s known because it’s got an unusually large number of exceptionally well-preserved kimberlites, and these are also proven to be diamond bearing. Now kimberlites throughout the world are typically fairly heavily eroded – eroded as a result of just simply their age and erosion by rivers and also by glaciation, et cetera, but the Fort à la Corne kimberlites have been unusually well preserved and because they were in place in an area where there was a rapid accumulation of sediments, which helped preserve them, and then subsequently the result of about 100 meters or so – it varies, depending where you are – but about 100 meters of glacial overburden, which has helped to protect these as well. And, as I say, it sets up an internationally-known area for large kimberlites and kimberlites of significant size and because they’re diamondiferous, there’s a potential for very large quantities of diamonds.
At this stage, the grades of stones in the area are not particularly well known because it’s in the fairly early stages of exploration, but it doesn’t take much to work at it. If you’ve got a very large quantity of rock, you don’t particularly need a very high grade in order to get a significant quantity of diamonds out of the ground at the end of the day.
The Fort à la Corne area, actually, lends itself to the possibilities of bringing to the fore another very large-scale diamond mine of the type like Argyle in Western Australia, which at the moment is the world’s largest mine. So the Fort à la Corne area definitely has the potential for that kind of scale of kimberlite.
Tom: Okay. Now, it would seem like the kimberlite pipes, and that’s going to be my next question, but first I want to address this one. The kimberlite pipes that you’ve been describing that’s on the De Beers-Kensington property and on the other properties that you’ve been talking about, during the course of my research, I looked at the maps and whatnot and they’ve done some airborne surveys there and there’s quite a few kimberlite pipes through there. It would seem to me like that the kimberlite pipes could also extend into Casavant Mining and Kimberlite International’s 1.9 million acres quite easily, right?
Dr. Hutchison: Absolutely, and I would say that that’s almost within the realms of certainty. In fact, it’s just the case at this stage for us doing our exploration and delineating that too. When you look at a map of the De Beers claims and look at where the Casavant claims lie in association with them, you’re really talking a matter of – well the minimum is really about half a kilometer distance between a known kimberlite and De Beers area, compared to the boundary or the border with Casavant claims, so that’s really a very small distance.
Now, diamonds and diamond deposits and kimberlites in particular don’t fall quite into the realm of oil reservoirs where if you’ve got an oil reservoir claim, you can quite often be taking oil from other people’s properties because oil obviously is a liquid commodity and diamonds don’t behave in that fashion, but kimberlite pipes, although they have a surface manifestation or a near surface manifestation, they also have feeder pipes associated with them, which can occur a range of depth so with the existing known kimberlites in the De Beers area, there’s a very real possibility that there are feeder channels associated with them that are on the Casavant properties.
Now, the other point is that worldwide, in worldwide settings, kimberlites tend to be found at the surface of the earth, at the surface, kimberlites appear as linear-type trends, and also in subparallel linear trends across the region. Now, when you look at a map of the claims that De Beers and the associated surrounding Casavant properties, and also Shore Gold, there’s a very obvious linear trend to where De Beers have delineated kimberlites, and if you follow that line off the end of the De Beers properties, you get into Casavant properties, so there’s no good geological argument to suggest that there’s no good likelihood of kimberlites being found at the extension of those linear trends within Casavant properties, and also there’s no good geological argument to suggest that there’s not a good chance of finding subparallel and similar trends of occurrence of kimberlite in other areas of the Casavant property. So, it’s very much a possibility, a strong possibility, that the occurrence of kimberlites in De Beers claims and also Shore Gold claims nearby are suggestive of a strong likelihood of kimberlites to be found in Casavant claims.
Tom: Okay. Now, we’ve mentioned the word – both of us have talked quite a bit here and we’ve mentioned the word kimberlite pipe. Can you tell us – I think that this is very fascinating. I’m sort of an amateur geologist myself; I’ve got a lot of books on geology. Specifically for the listeners, what is a kimberlite pipe and what’s its origin?
Dr. Hutchison: Let’s start with kimberlite. First of all, kimberlite is a volcanic rock and in a broadly similar fashion to a basalt, which is a sort of common volcanic rock that you see around the world, and it forms volcanoes, the kimberlite forms volcanoes just in a similar way to the classic explosive volcanoes of the type of Krakatoa, for example, and there is presently active in Japan and around the Pacific Rim, the Aleutian Islands of Alaska is another example. The difference between a kimberlite and a normal volcanic rock is that the volcanic rock or the magma, which makes up the kimberlite, ultimately comes from much deeper than say Japanese volcanoes or whatever, and because of that depth of origin it gives a potential for diamonds, which form deep in the earth to be carried up within that kimberlite and magma, just as a passenger, if you like, and brought up to the surface. Now a kimberlite pipe is simply the interior part of an old kimberlite volcano and typically with the kimberlite pipes in Africa and other parts of the world and also in northwest territories in Canada, for example, the tops of those volcanoes are typically eroded away so all you see is a relatively narrow, maybe a kilometer wide if you’re lucky, pipe of kimberlites.
Now, in the Fort à la Corne area, because you’ve got such exceptional preservation, you’ve actually got preserved the upper reaches of the volcanoes so the surface manifestation below the glacial overburden in Fort à la Corne is much, much wider. You’ve got almost a champagne glass-type cross section of the kimberlites in that area so you’ve got much more kimberlite, much more material to deal with in terms of extracting diamonds at the end of the day. And ultimately a larger mine.
Tom: Something in excess of 75% of the kimberlite pipes on the De Beers-Kensington properties have been found to be diamondiferous. In fact, the Fort à la Corne property, which your property borders and surrounds, is at the top of the De Beers development list, as far as developing properties. Can you comment on this?
Dr. Hutchison: Yes, that’s my understanding as well. People get very excited about kimberlites in general, but the fact is that worldwide, a fairly small percentage of kimberlites are actually diamondiferous or diamond bearing. Having such a high proportion of it for our field is particularly exciting.
Of course, the next stage is that you want to find pipes which have sufficient quantities of stones or diamonds and an appropriate quality to be economic and that’s the next stage. Now, at the moment, De Beers and Shore Gold are getting themselves involved with a prospecting program where they are using large diameter drilling in order to look at not only the fact that they’ve got diamonds there, they knew that already, but in what sort of quantity and in what sort of quality, and It will give them an answer in terms of what the economic potential of the pipe is.
But I would say the commodity we’re looking for is diamonds unless you’ve got a large proportion of pipes which have diamonds, then that’s very much in the interest of any company that’s involved in an area like this.
Tom: Now, during the course of my research I read a lot of Internet articles, read a lot of articles specifically about diamonds and exploration for diamonds, and on one of the Internet sites I read that the valuation of the De Beers-Kensington property, and this is in diamonds, could be somewhere on the order of $40 to 80 billion, U.S. dollars, and that’s just for that 58,000 acre area that they have there. Is this true? Have you heard anything about this?
Dr. Hutchison: Yes, well it very much could be true. It’s very hard to put a dollar figure on a property which is in such an early stage of exploration as the De Beers claims at the moment, and also Shore Gold, and similarly with Casavant. Casavant, although we have a very good area in terms of kimberlite potential, we’re a little short at this stage of actually putting a dollar figure on it. However, it’s true to say, certainly, that should a mine develop on the Fort à la Corne area, it will be a large mine almost certainly, and a large mine, a world-scale mine, absolutely, is of the order of that kind of figure -- $40 to 80 billion that you’re quoting. My prediction of these potential values are not far off the mark. There needs to be a good statistical backing to support these ultimately, but that’s the kind of information that comes from a good exploration program and that’s the kind of program that Casavant are going to be putting in place as we speak, pretty much, so I would say that those kind of figures aren’t far off the mark, should an appropriate mine be forthcoming on the site.
Tom: Okay. Now what is the next step for the company? Where are we with determining the amount, size, et cetera, of the diamonds that are potentially on the Casavant property? In other words, where are we at in the exploration phase of this?
Dr. Hutchison: Well, first we have to identify kimberlites on the property and there have been some other companies that will be working historically in the area and kimberlites are very much known from the area and absolutely it’s the case in the De Beers region, which Casavant claims are surrounding, and so this is the first stage.
Now, I mentioned a little bit earlier that we are in the fortunate position of being at the forefront of some good technology and having access to the forefront of good technology in terms of aerial-based prospecting. Particularly, we are going to be putting forward a plan for doing some aerial surveys – both aerial surveys, which are called resistivity surveys, and the traditional survey, which is an aeromagnetic survey.
Now the aeromagnetic survey is the type which has been used by De Beers and Shore Gold historically for finding their claims but this new sort of aerial technique, and the resistivity survey gives the opportunity of finding kimberlites, which are hard to find by traditional techniques. So we will be implementing that process and my understanding is that the contracts are being signed with a contractor to get into the air within a matter of a week or so and at the same time, we are ready on the basis of historical aeromagnetic data, we’ve already delineated a few targets on the ground, which are worth looking at in more detail. We’ve got a ground crew, which we have together, which are going to be moving into the field very shortly and will be looking at these targets. As the aerial data start coming on stream, we’ll be able to refocus our ground-based surveys and so, for example, if something very exciting comes up on the airborne survey within the next couple of weeks, we can send someone into the ground to look at them immediately.
And the third stage, which is going to be concurrent with the other two I’ve just mentioned, is a drilling program. Our drilling is basically the last thing that happens, once you’ve got a good detailed ground survey and have delineated something that looks like it’s probably a kimberlite. We already have some targets which are appropriate for our drilling at the moment, and we anticipate that, as I say, it to come forward from the aerial and also from the detailed ground surveys, we’ll be delineating more targets which we can drill for those.
It’s a three-stage process and that’s the three-stage process which is essentially happening all at once. The reasoning behind that is that we have to fulfill obligations to the Canadian authorities in order to maintain our claims and from the point of view of our shareholders and ourselves, there’s no reason to hang back. We want to see some results and there’s no reason not to be implementing that as soon as possible.
Tom: All right. Now, obviously this is potentially huge for the company and its shareholders. When can we expect to hear something maybe in the form of a news release or something like that, regarding the exploration of the property, and I know that you just finished telling me that things look like they’re happening pretty quickly as far as the exploration phase goes. So, can you be as specific as possible and tell us maybe when we might hear about the next step through the newswires?
Dr. Hutchison: Yes, well my understanding is that we should be hearing very soon. I mean, the exploration plan is being implemented essentially as we speak. I would imagine that the airborne survey is probably going to commence within a week or so and slightly farther down the line for the drilling, and that kind of time scale also for the ground-based surveys. It’s my understanding and my feeling that there will be news reports going out on basically a weekly basis from the company. My own personal point of view certainly is that the best way to keep people on board and people interested is to update them and to inform them of what’s going on. I would say certainly within the next couple of weeks we should be getting a wire out and also we’ll be updating the website, the company will be updating its website as I understand it, on a weekly basis, to keep people informed.
Tom: Okay. All right, Dr. Mark Hutchinson, we want to thank you very much for the time on the interview today. Certainly very interesting information.
Dr. Hutchison: Not at all. Thank you.
End
Transcript produced by AngelaCotton.com
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Tradersnation
Tom Allinder - Guest Host Interviews
Dr. Mark Hutchison, Consulting Geologist for
Casavant Mining Kimberlite International (bb: CMKM)
http://www.tradersnation.com/cmkm.shtml
Tom Allinder of HotStockChat interviews Dr. Mark Hutchison, Consulting Geologist for Casavant Mining Kimberlite International (OTCBB-CMKM)Casavant Mining Kimberlite International (OTCBB-CMKM)
Interview and Transcript Link
Interview Date: February 21 2003
Transcript of the Interview
Company Profile
Casavant Mining Kimberlite International, Inc.
CORPORATE SUMMARY
Casavant Mining-Kimberlite International (f/k/a Cyber Mark International Corporation) is engaged in the business of diamond mining in Canada.
In November 2002, the Company made approximately eight acquisitions of which all conclusive there is 1.9 million acres of mining claims, which have been secured by the Company in the Kimberlite area in the Province of Saskatchewan, Canada, known as Fort a la Corne. The Company had been inactive since 2001.
HISTORICAL BUSINESS INFORMATION:
The Company was incorporated under the laws of the State of Delaware on June 9, 1998 to serve as a holding company for CM300. CM300 was incorporated under the laws of the Province of Ontario on January, 1996 and became the Company's wholly-owned subsidiary on the same day that they were incorporated. In April 2002, the Company was reincorporated in the State of Nevada.
· On November 27, 2002, the Company announced that there are approximately eight acquisitions of which all conclusive there is 1.9 million acres of mining claims which have been secured by the Company in the Kimberlite area in the province of Saskatchewan, Canada, known as Fort a la Corne.
· On December 3, 2002, the Company announced that its Board of Directors voted to change the company's name to Casavant Mining-Kimberlite International.
· On January 29, 2003, the Company changed its name to Casavant Mining-Kimberlite International.
Links:
Casavant Mining Kimberlite International's Info on Fort a la Corne
Interesting Info on Diamond Mining in Saskatchewan
Info on Acquisitions by CMKM
Recent Company News, SEC filings, Insider Information etc can be accessed at Yahoo Finance
Interview Transcript
Transcript of Tom Allinder of HotStockChat.com’s Interview with Dr. Mark Hutchison of Casavant Mining Kimberlite International (OTCBB-CMKM)
Tom: Hello and welcome to HotStockChat. This is Tom Allinder. Today my guest is Dr. Mark Hutchison. Dr. Hutchison is a consulting geologist for Casavant Mining Kimberlite International. Casavant Mining Kimberlite International is traded on the OTCBB market under ticker symbol CMKM.
Now, as with all companies that we interview, we want to remind listeners that you will be hearing forward-looking statements during the course of this interview. Therefore, it’s advised that everyone that listens to the interview or reads the transcript, or looks at the profile or anything else on HotStockChat.com, must do their own due diligence and make up their own minds regarding buying the stock of CMKM or any other company that we interview or profile at HotStockChat.com.
So, without further delay – Mark, how are you doing today?
Dr. Hutchison: Hi, I’m doing very well, thank you.
Tom: Can you give our listeners a brief overview of the business of Casavant Mining Kimberlite International?
Dr. Hutchison: I certainly can. Casavant Mining is a U.S. publicly-listed company based out of Nevada and it’s a fairly new company. Principal assets consist of a large mineral claim up in Saskatchewan in Canada. Its leadership involves a number of people who have been players in both mineral and diamond industries in Canada for a number of decades. Most have been private ventures. This is a new, exciting development for the people involved with the company, getting into the public forum.
Tom: Now, the company has acquired 1.9 million acres of land in the diamond district of Saskatchewan and this land surrounds the De Beers-Kensington diamond property and they have 58,000 acres. Is that correct, that the 1.9 million acres surrounds that?
Dr. Hutchison: Yes, that’s broadly correct. There’s actually two principal other players in the area as well as Casavant. The other companies are a joint venture between De Beers-Kensington and Cameco, which is called the Fort à la Corne joint venture. They hold 22,544 hectares, which is about 58,000 acres, as you say. And the other company is a company called Shore Gold, who owns slightly more than 28,000 hectares.
Now, the Casavant properties are significantly larger than these and broadly surround them. They are also directed, or concentrated towards the northwest of the De Beers joint venture area. Now, historically the De Beers joint venture was basically staked and claimed on the basis of information known to them at the time, prospecting techniques which were available to them at the time, which are slightly outdated at the moment. So obviously, like any mining company, they’ve made a focus on a particular area of interest to them. But Casavant has come along at a time where the technology is a little bit more advanced and I’ve been very fortunate in being able to access land surrounding, as you say, the De Beers and also Shore Gold. They are planning to use this technology to delineate kimberlites surrounding the De Beers and the Shore Gold properties.
Tom: All right. Now this land in the Fort à la Corne region, what is the significance of this particular region when it comes to diamonds?
Dr. Hutchison: Well, Fort à la Corne is actually internationally known as being quite an exceptional area for kimberlites and for diamonds. It’s known because it’s got an unusually large number of exceptionally well-preserved kimberlites, and these are also proven to be diamond bearing. Now kimberlites throughout the world are typically fairly heavily eroded – eroded as a result of just simply their age and erosion by rivers and also by glaciation, et cetera, but the Fort à la Corne kimberlites have been unusually well preserved and because they were in place in an area where there was a rapid accumulation of sediments, which helped preserve them, and then subsequently the result of about 100 meters or so – it varies, depending where you are – but about 100 meters of glacial overburden, which has helped to protect these as well. And, as I say, it sets up an internationally-known area for large kimberlites and kimberlites of significant size and because they’re diamondiferous, there’s a potential for very large quantities of diamonds.
At this stage, the grades of stones in the area are not particularly well known because it’s in the fairly early stages of exploration, but it doesn’t take much to work at it. If you’ve got a very large quantity of rock, you don’t particularly need a very high grade in order to get a significant quantity of diamonds out of the ground at the end of the day.
The Fort à la Corne area, actually, lends itself to the possibilities of bringing to the fore another very large-scale diamond mine of the type like Argyle in Western Australia, which at the moment is the world’s largest mine. So the Fort à la Corne area definitely has the potential for that kind of scale of kimberlite.
Tom: Okay. Now, it would seem like the kimberlite pipes, and that’s going to be my next question, but first I want to address this one. The kimberlite pipes that you’ve been describing that’s on the De Beers-Kensington property and on the other properties that you’ve been talking about, during the course of my research, I looked at the maps and whatnot and they’ve done some airborne surveys there and there’s quite a few kimberlite pipes through there. It would seem to me like that the kimberlite pipes could also extend into Casavant Mining and Kimberlite International’s 1.9 million acres quite easily, right?
Dr. Hutchison: Absolutely, and I would say that that’s almost within the realms of certainty. In fact, it’s just the case at this stage for us doing our exploration and delineating that too. When you look at a map of the De Beers claims and look at where the Casavant claims lie in association with them, you’re really talking a matter of – well the minimum is really about half a kilometer distance between a known kimberlite and De Beers area, compared to the boundary or the border with Casavant claims, so that’s really a very small distance.
Now, diamonds and diamond deposits and kimberlites in particular don’t fall quite into the realm of oil reservoirs where if you’ve got an oil reservoir claim, you can quite often be taking oil from other people’s properties because oil obviously is a liquid commodity and diamonds don’t behave in that fashion, but kimberlite pipes, although they have a surface manifestation or a near surface manifestation, they also have feeder pipes associated with them, which can occur a range of depth so with the existing known kimberlites in the De Beers area, there’s a very real possibility that there are feeder channels associated with them that are on the Casavant properties.
Now, the other point is that worldwide, in worldwide settings, kimberlites tend to be found at the surface of the earth, at the surface, kimberlites appear as linear-type trends, and also in subparallel linear trends across the region. Now, when you look at a map of the claims that De Beers and the associated surrounding Casavant properties, and also Shore Gold, there’s a very obvious linear trend to where De Beers have delineated kimberlites, and if you follow that line off the end of the De Beers properties, you get into Casavant properties, so there’s no good geological argument to suggest that there’s no good likelihood of kimberlites being found at the extension of those linear trends within Casavant properties, and also there’s no good geological argument to suggest that there’s not a good chance of finding subparallel and similar trends of occurrence of kimberlite in other areas of the Casavant property. So, it’s very much a possibility, a strong possibility, that the occurrence of kimberlites in De Beers claims and also Shore Gold claims nearby are suggestive of a strong likelihood of kimberlites to be found in Casavant claims.
Tom: Okay. Now, we’ve mentioned the word – both of us have talked quite a bit here and we’ve mentioned the word kimberlite pipe. Can you tell us – I think that this is very fascinating. I’m sort of an amateur geologist myself; I’ve got a lot of books on geology. Specifically for the listeners, what is a kimberlite pipe and what’s its origin?
Dr. Hutchison: Let’s start with kimberlite. First of all, kimberlite is a volcanic rock and in a broadly similar fashion to a basalt, which is a sort of common volcanic rock that you see around the world, and it forms volcanoes, the kimberlite forms volcanoes just in a similar way to the classic explosive volcanoes of the type of Krakatoa, for example, and there is presently active in Japan and around the Pacific Rim, the Aleutian Islands of Alaska is another example. The difference between a kimberlite and a normal volcanic rock is that the volcanic rock or the magma, which makes up the kimberlite, ultimately comes from much deeper than say Japanese volcanoes or whatever, and because of that depth of origin it gives a potential for diamonds, which form deep in the earth to be carried up within that kimberlite and magma, just as a passenger, if you like, and brought up to the surface. Now a kimberlite pipe is simply the interior part of an old kimberlite volcano and typically with the kimberlite pipes in Africa and other parts of the world and also in northwest territories in Canada, for example, the tops of those volcanoes are typically eroded away so all you see is a relatively narrow, maybe a kilometer wide if you’re lucky, pipe of kimberlites.
Now, in the Fort à la Corne area, because you’ve got such exceptional preservation, you’ve actually got preserved the upper reaches of the volcanoes so the surface manifestation below the glacial overburden in Fort à la Corne is much, much wider. You’ve got almost a champagne glass-type cross section of the kimberlites in that area so you’ve got much more kimberlite, much more material to deal with in terms of extracting diamonds at the end of the day. And ultimately a larger mine.
Tom: Something in excess of 75% of the kimberlite pipes on the De Beers-Kensington properties have been found to be diamondiferous. In fact, the Fort à la Corne property, which your property borders and surrounds, is at the top of the De Beers development list, as far as developing properties. Can you comment on this?
Dr. Hutchison: Yes, that’s my understanding as well. People get very excited about kimberlites in general, but the fact is that worldwide, a fairly small percentage of kimberlites are actually diamondiferous or diamond bearing. Having such a high proportion of it for our field is particularly exciting.
Of course, the next stage is that you want to find pipes which have sufficient quantities of stones or diamonds and an appropriate quality to be economic and that’s the next stage. Now, at the moment, De Beers and Shore Gold are getting themselves involved with a prospecting program where they are using large diameter drilling in order to look at not only the fact that they’ve got diamonds there, they knew that already, but in what sort of quantity and in what sort of quality, and It will give them an answer in terms of what the economic potential of the pipe is.
But I would say the commodity we’re looking for is diamonds unless you’ve got a large proportion of pipes which have diamonds, then that’s very much in the interest of any company that’s involved in an area like this.
Tom: Now, during the course of my research I read a lot of Internet articles, read a lot of articles specifically about diamonds and exploration for diamonds, and on one of the Internet sites I read that the valuation of the De Beers-Kensington property, and this is in diamonds, could be somewhere on the order of $40 to 80 billion, U.S. dollars, and that’s just for that 58,000 acre area that they have there. Is this true? Have you heard anything about this?
Dr. Hutchison: Yes, well it very much could be true. It’s very hard to put a dollar figure on a property which is in such an early stage of exploration as the De Beers claims at the moment, and also Shore Gold, and similarly with Casavant. Casavant, although we have a very good area in terms of kimberlite potential, we’re a little short at this stage of actually putting a dollar figure on it. However, it’s true to say, certainly, that should a mine develop on the Fort à la Corne area, it will be a large mine almost certainly, and a large mine, a world-scale mine, absolutely, is of the order of that kind of figure -- $40 to 80 billion that you’re quoting. My prediction of these potential values are not far off the mark. There needs to be a good statistical backing to support these ultimately, but that’s the kind of information that comes from a good exploration program and that’s the kind of program that Casavant are going to be putting in place as we speak, pretty much, so I would say that those kind of figures aren’t far off the mark, should an appropriate mine be forthcoming on the site.
Tom: Okay. Now what is the next step for the company? Where are we with determining the amount, size, et cetera, of the diamonds that are potentially on the Casavant property? In other words, where are we at in the exploration phase of this?
Dr. Hutchison: Well, first we have to identify kimberlites on the property and there have been some other companies that will be working historically in the area and kimberlites are very much known from the area and absolutely it’s the case in the De Beers region, which Casavant claims are surrounding, and so this is the first stage.
Now, I mentioned a little bit earlier that we are in the fortunate position of being at the forefront of some good technology and having access to the forefront of good technology in terms of aerial-based prospecting. Particularly, we are going to be putting forward a plan for doing some aerial surveys – both aerial surveys, which are called resistivity surveys, and the traditional survey, which is an aeromagnetic survey.
Now the aeromagnetic survey is the type which has been used by De Beers and Shore Gold historically for finding their claims but this new sort of aerial technique, and the resistivity survey gives the opportunity of finding kimberlites, which are hard to find by traditional techniques. So we will be implementing that process and my understanding is that the contracts are being signed with a contractor to get into the air within a matter of a week or so and at the same time, we are ready on the basis of historical aeromagnetic data, we’ve already delineated a few targets on the ground, which are worth looking at in more detail. We’ve got a ground crew, which we have together, which are going to be moving into the field very shortly and will be looking at these targets. As the aerial data start coming on stream, we’ll be able to refocus our ground-based surveys and so, for example, if something very exciting comes up on the airborne survey within the next couple of weeks, we can send someone into the ground to look at them immediately.
And the third stage, which is going to be concurrent with the other two I’ve just mentioned, is a drilling program. Our drilling is basically the last thing that happens, once you’ve got a good detailed ground survey and have delineated something that looks like it’s probably a kimberlite. We already have some targets which are appropriate for our drilling at the moment, and we anticipate that, as I say, it to come forward from the aerial and also from the detailed ground surveys, we’ll be delineating more targets which we can drill for those.
It’s a three-stage process and that’s the three-stage process which is essentially happening all at once. The reasoning behind that is that we have to fulfill obligations to the Canadian authorities in order to maintain our claims and from the point of view of our shareholders and ourselves, there’s no reason to hang back. We want to see some results and there’s no reason not to be implementing that as soon as possible.
Tom: All right. Now, obviously this is potentially huge for the company and its shareholders. When can we expect to hear something maybe in the form of a news release or something like that, regarding the exploration of the property, and I know that you just finished telling me that things look like they’re happening pretty quickly as far as the exploration phase goes. So, can you be as specific as possible and tell us maybe when we might hear about the next step through the newswires?
Dr. Hutchison: Yes, well my understanding is that we should be hearing very soon. I mean, the exploration plan is being implemented essentially as we speak. I would imagine that the airborne survey is probably going to commence within a week or so and slightly farther down the line for the drilling, and that kind of time scale also for the ground-based surveys. It’s my understanding and my feeling that there will be news reports going out on basically a weekly basis from the company. My own personal point of view certainly is that the best way to keep people on board and people interested is to update them and to inform them of what’s going on. I would say certainly within the next couple of weeks we should be getting a wire out and also we’ll be updating the website, the company will be updating its website as I understand it, on a weekly basis, to keep people informed.
Tom: Okay. All right, Dr. Mark Hutchinson, we want to thank you very much for the time on the interview today. Certainly very interesting information.
Dr. Hutchison: Not at all. Thank you.
End
Transcript produced by AngelaCotton.com
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Tradersnation
Tom Allinder - Guest Host Interviews
Dr. Mark Hutchison, Consulting Geologist for
Casavant Mining Kimberlite International (bb: CMKM)
http://www.tradersnation.com/cmkm.shtml
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