CMKM Diamonds Inc. (fka CMKX)

[bluediamonds]

CMKM VALUATION AND REGIONAL GEOLOGY

Great Houston Post
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Another great post by Houstontex1110. Here is the link:

http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=78489

CMKM VALUATION AND REGIONAL GEOLOGY


I just read a post that cited a valuation of 1.4 trillion sounds insane. Why? Don't you dare bring up the valuation of Microsoft. At one time in the past the heavy industries ruled the market in terms of valuation. Folks, Microsoft is a very recent occurrence, and Rockefeller's net worth surpassed Bill Gates' net worth by a factor of ten times or more. And what industry was Rockefeller's choice? Oil...a natural resource. CMKM's choice? Diamonds...a natural resource.

REGIONAL GEOLOGY

One of the principles of striking an elephant size gold deposit is to lay claim to land adjacent to an existing mega tonnage gold deposit. Mineral deposits are not evenly distributed throughout the world, and there is a logical reason for that. Where is the world's greatest oil reserves? The middle east, and how come? The geological forces and the necessary plant, animal and sediment deposition which created one pool of oil extended over the entire region. Where was the greatest gold resource discovered? In the tip end of Africa, South Africa. How come? Those regional geological forces impacted that entire area. And what about Texas and the Gulf of Mexico? At one time a huge pool of oil and gas extended across that region until mankind poked holes into the ground and extracted the treasure. The Gulf of Mexico reached as far as central Texas, and resulted in the deposition of sediments, animal and plant life, creating this resource.

Do you realize where the second largest oil pool in the world is located? Take a guess. Did you point towards the middle east? If so, you should have pointed towards Canada. The oil is trapped in what they call oil sand, and according to estimates the resource is valued at approximately 10 trillion dollars! The original oil/gas resource in Texas and the Gulf of Mexico would easily have exceeded a value of one trillion, and the gold fields of South Africa if left dormant would certainly meet or beat one trillion. And the oil of the Middle East? Well over 90 trillion in its original state. You see the common thread? Geological forces are not small and impotent. These forces exert their effects over areas that sometimes are as large as the state of Texas, and create stupendous wealth.

Mining entrepreneurs learn this early in their careers, and whenever the word gets out that a mining concern brought up some rich drill cores, there is a modern day gold rush to the area. Let's see, who could this wisdom apply to? Uh, Bill Gates? Nope, Urban Casavant got this one right, I wager it wasn't accidental. He figured the forces behind the diamond creation just might extend throughout that part of Canada including Sask. and he responded appropriately. And what forces brought about this diamond field? Large numbers of volcanoes brought up the diamonds which formed in the earth's interior. Fortunately for CMKM investors, the volcanoes were numerous and their sizes dwarf the typical volcano.

Casavant essentially leased up a large section of the Sask. region and as the previous examples manifested, a trillion dollar valuation is not outside of a realistic estimate. Bear in mind, diamonds are quite valuable, and we have almost monopolized the Sas area. If just one 4square miles kimberlite proves to be economic, as Dr. Diamond's calculations demonstrated, this could add 750 billion dollars to our net worth. What about the additional 200 kimberlites? Throw in the possible gold, silver, and uranium deposits, and a net worth of 1.4 trillion is reasonable.

This reasoning assumes 1.9 million acres. I am 99% certain that CMKM has quietly been leasing additional acreage. We just picked up another 500,000 acres for a paltry 75 billion shares...what a screaming bargain that was. In spite of that, just last week shareholders exhibited near panic after discovering another 300 billion shares might have been recently issued.

What does it take to drill a simple truth into your thick skulls? Urban Casavant is a genius at striking bargain deals on mineral rights. Some of you question every move he makes. The man just monopolized this diamond area right under the nose of the great and famous Debeers. He outmaneuvered their entire management pool, and you nevertheless question his ability to make the right choices? For the vast majority who know we have a Donald Trump deal maker in the mining industry, my thick skull analogy does not apply to you.

A bit of psychology 101 is relevant to this topic. Remember years ago when no one had broken the 4 minute mile. Even the so called experts opined it was impossible for a human to accomplish that feat. The principle here is that people when confronting a never before situation, routinely conclude it is therefore impossible. That is faulty reasoning people. The past reality does not in and by itself prevent the future occurrence of that event. Yet people regularly draw that conclusion.

In the case of CMKM, a regional resource exceeding one trillion dollars has occurred on numerous occasions, and some of you persist in applying that impossible attitude. I hope that this brief treatise on regional geology has fulfilled just one goal of mine. If CMKM's land package exceeds one trillion in valuation, those who have read this, will exclaim, "I am not surprised, that is no big deal when compared to the 90 trillion oil fields of the middle east." Granted, discovering trillion dollar resources is rare, but is possible as the lessons of history has taught us.

Is there supplemental evidence that appears to back this conclusion? SGGM's 5% interest in CMKM as of today amounted, I believe around 1.4 trillion. Several months ago, I predicted that soon the Big Money would come knocking on CMKM's door, and SGGM's principles are some of the mining industries movers and shakers. They have proven their expertise in the mining industry, and recently entered into a diamond deal with Debeers, BHP, etc for a 10% stake. Their 10% stake amounts to 70 million dollars, and one brother donated 50 million to the college he attended. Does the above sound like they are successful in the mining industry? And what door did they knock on? CMKMs.

Finally, Debeers places a value of 40 to 80 billion on their 58,000 acres. If we assume CMKM owns 2 million acres divided by 58,000 acres, the result is 34.5 rounded. Then multiply 34.5 times 40 billion and the result...1.38 trillion dollars. Coincidence? The industry and the market is willing to bestow the lower end of Debeers estimate on their acreage to CMKM. And why not? The word has leaked out about the magnetic survey results. It is plainly impossible to keep that type of information under wraps. Too many eyes saw that the final map displaying the hundreds of kimberlite bodies and at least several of gigantic proportions.

In conclusion, Urban Casavant just locked up another regional mineral discovery valued at least 1 trillion and the market is slowly recognizing that fact. What can Urban expect? More knocks on his door. The Big Money realizes Urban is a man who is willing to cut a deal where both parties win. At the races, his basic psychology has come across as a caring and giving person. This is the type of man that other business men seek out to conduct business with. And even if they personally dislike him, WE GOT THE GOODS.

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