+ and what will be the returns? +, page-16

"I believe that stage 1 needs to be upgraded to twice the amount before investment becomes attractive. They are talking about stage 2 but this also requires further investment and thus will lock out dividends. "

Great piece of analysis -- except, you've concentrated most of it on stage one operations when, IMO, the real thrust behind this whole project is stage two.

Granted, the strongest evidence to date that there is significantly more diamonds to be found, as released by the company, is in the form of an aerial survey. How accurate this "spectrem 2000" technology really is, I don't know, but to me it's anything but rock solid proof.

Where my faith IS coming from however, is from the words one James Picton (in the WH Ireland broker report). If he says there's 2m carats, grade 20cpht, in the ground, possibly 3m, then that's good enough for me. He estimates the project has a net worth of about $120m, so you'd think a substantial (50m+) market cap is reasonable. I know I risk sounding like a fool acting on an outside source of information but hey, this guy is (supposedly) one of the world's foremost diamond analyst with plenty of years of experience and impressive credentials, not some fly by night hotshot analyst.

I think judging from the massive gains lately on the share price most holders are also placing their faith on a huge stage 2 operation. It's built on a pretty shaky foundation, but time will tell if it was well placed.

IMO Whether you consider NDC to be an attractive investment will depend on how much weight you give to Picton's words....