Ann: Quarterly Activities Report, page-28

So they won't find a commercial pipe at Lulo but should have just kept it and not diversified???
If the kimberlite is at the current surface or near you don't need to test deep initially as kimberlites are usually homogenous throughout the pipe. Only if the pipe significant overburden would you need to go deep initially. The fact that kimberlites in the area appear near surface and diamonds have been transported alluvially suggests at surface bulk sampling will provide the information if a kimberlite is diamond bearing, only after that do you need to test at depth for the kimberlite parameters.

As for calling the addition of Merlin a mistake! Diversifying into a known resource of high quality diamonds, with a team that has technical knowledge of the resource with rising diamond prices, at low initial cost would seem like a prudent business decision.