Ann: Suspension from official quotation, page-119

Hey 1S1

And I thought I was getting a bit too optimistic!
Good to have some company, if Block 6 lives up to the potential I think it has, yes, I think a dividend is a possibility. A bit weird thinking about it, as I originally bought in for the kimberlites. I never expected to be excited about the alluvials.

But Block 6 caught my eye early for a number of reasons.

1. Massive source kimberlite
I favour L259 to be the source of the alluvial diamonds.
And it is massive, 116 hectares and counting as it is still open to the southwest. L259 is non-magnetic, and my theory is that it has lost its magnetic signature because it is a richer older kimberlite that has been deeply weathered. As it is older and partly sits within the river valley, the river had plenty of time to run through it and shave off big chunks, releasing loads of diamonds into the river.

2. Very close to source
Block 6 is only 2km downstream from L259 based on the current river location.
But it could have been even closer in the past. Based on garimpeiro diggings, it could have been as close as 1km. Either way 1km or 2km is very close in geographic terms. This increases the chance of the big heavy diamonds making it to deposition without too much abrasion. That is why they still maintain their jagged edges. Short distances and less abrasion is also good for the smaller diamonds because more will be captured.

3. Natural collection point
The location of Block 6 sits at a natural geographic collection point.
The sharp bend in the river and the tributary on the left of it is an environment that is conducive to altered flow velocity. Sandbars and potholes tend to appear in this type of environment. They make great diamond collectors.

4. Economics
Unlike a hard rock mine, nature has broken down the kimberlite and has also concentrated the diamonds together. Less volume of a hard rock mine but the grades are richer and it is very low cost to mine. Very cheap as all LOM has to do is scoop them up. Will be interesting if or when they JORC it up, the numbers could be staggering.


Conclusion
All the ducks have lined up!