CRD or Crown Diamonds.Websitehttp://www.crowndiamond.com.au/1....

CRD or Crown Diamonds.

Website
http://www.crowndiamond.com.au/

1. Was originally "Majestic" but a reverse takeover took place in May 2003 and the name was changed to CDR. A capital reconstruction took place and "Star Mining" from South Africa and other sources then held 73% or 125 mill shares. Two other Drectors held 5 mill. shares each.

Of the 135 mill, 101.2 mill shares will be in escrow until 30 June 2004. Thereafter, 50.6 mill will be in escrow till 30 June 2005. After an issue the final picture is:

Shares: 178.8 mill CRD shares (current price 14 cents). 28.6 mill. Aug. 2004 CRDOA options (4.5 cents to pay, current price 10 cents; 40.9 mill. Conv (1:1) CRDG Nov. 2005 11% Notes, current price 18.5 cents. Also 1.07 mill. 8% Febr. 2004 Conv. Notes.

2. Reverse takeover.
2.1 Mines.
Star Mining handed over 2 South African mines: Star Mine: 841,000 tonnes of Proven and Pprobable reserves and 604,000 tonnes of Inferred reserves, grading 44 cpht (carats per 100 tonnes).
The Messina Mine: 449,000 proven and probable reserves and 391,000 tonnes of Inferred Reserves, grading 28 cpht

From Jan-Dec 2002, 31,600 carats were produced but the intention is to increase that to 100,0000 carats by 2006. (Messina: 28,000 c.; Star mine: 72,000 c.).

The Valuation was $A40.2 mill. and 135 mill.shares were issued for 20 cents as wel as one deferred payment of $1.5 mill. and 2 payments, of which $1.45 mill. in 2006 and in 2007; total cash: $4.4 mill. CRD also raised $7.5 mill. later to be used in the mines to increase output.

Ninety percent of these stones realize an average of $US175 per carat. Sometimes, the price can exceed $US200 due to some larger diamonds being present. They say that at present $230 per carat can be obtained due to some expensive diamonds.

On 28 Nov. CRD mentioned that they could buy another SA mine, the "Helam". ( cpht not known yet) This extends to 700 m below ground level. If bought, the total production of the 3 mines could run to 250,000 carats per year by 2006. A revised Star Mining schedule could bring this up to 300,000 carats, all up.
This will require some expenditure in the Mines.

The 9 Dec. Roadshow summarizes some of the above mentioned mining statistics.
http://stocknessmonster.com/news-item?S=CRD&E=ASX&N=251799


NB: CRD will be making a takeover offer for Helam, a SA diamond company. This will call for an increase in shares. Therefore this report is incomplete.

Gerry
Don't hold.
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.