This is the latest email I recieved from Maureen. As you can see at Paramount they are very helpful when it comes time for queries about the actions of PCP.
We have completed processing the current bulk sample and still have some further work on the concentrates to do. Our last quarterly report gave an update of results up to the end of June, and the Annual Report will have a more detailed report. I cannot unfortunately provide you with more details for the moment due to insider trading restrictions, but suffice it to say that the grades are lower than expected, but our belief in the Vaal River deposits from this area is as strong as ever. We are recovering good commercial diamonds at low costs (higher than expected, however, due to a clay component requiring extra treatment - but still very economical in terms of extraction and processing) and have established a good working relationship with a local operator. We would need a grade of around 0.8 cpht to be able to mine profitably, though lower grades could be economic under certain circumstances. Just to refresh your memory - The Willows is just one farm to be tested as part of our Vaal River Project. It is relatively small, as are many farms in this area. We plan to progressively work a series of deposits, and are confident that many of them will prove to be economic and provide cash flow to support our exploration programmes in the search of a pipe. We also have Slypklip North Fruit Farm to test - currently we are trying to firm up tenure. Getting tenements granted is currently causing some delays, while the Department of Minerals & Energy copes with a backlog of applications and gets to grips with the new mining legislation that has just come in on 1st May. It is just a matter of being a bit patient, and in the meantime we are getting good results from our Australian operations. We have been extremely busy, and I am currently investigating some excellent new opportunities for Paramount that I hope we will soon be able to announce.
PCP Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
