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Anvil

02/24/12 8:18 AM

#22543 RE: DiamondFire #22531

I only looked at the Snowden report, not the stock. While not a geologist, I understand mining/geo reports. A couple of points.

1. What you have is a new mine, which is fine, but restarting a historical producer generally yield better results.

2. Who ever has paid for the geo work, is at least doing it the right way and not just claiming millions of ounces of gold based on nothing.

3. These guys won't have any idea of what they have until they do a drill program. So that begs the question, where will they come up with the $4-5MM to do it.

4. A drill program takes time and you would do 10-20 drill holes first and have the cores analyzed, and adjust where to drill based on those results. What I am suggesting here is that these things don't happen overnight. You are probably looking at 1.5 to 2 years to finish the drill program.

5. Then you have a good idea of what you have.Generally, this is where most junior miners sell the property or JV with one of big guys to do the pre-feasibility, feasibility and actually put into protection.

6. From where these guys are know to production, 5 years.

7. BTW, per the snowdon report, the silver samplings look decent but the gold samplings look low. Right know you really want to be at a minimum of 1.5 gpt, and really 2 gpt.

8. If the mineralization is real close to the surface, low gpt's is ok. The caveat is, these were just rock chip samplings, until they drill, no one knows what they have.

At least three gold and silver bearing volcanic hosted quartz stockwork vein
systems were discovered in outcrop in the northern portion of the prospect
between geophysical/geochemical survey lines 4 and 5.
x Composite rock chip sampling of these stockwork vein systems indicated
widths of 12 to 33 m., assaying greater than 0.3 gpt Au and 15 gpt Ag(representative of low grade open pit ore).