Post by fastwalker on Sept 20, 2004 21:12:44 GMT -5
Charles Fipke
Geologist Charles Fipke sparked Canada's first great diamond rush in 1991 when he discovered what would become the rich Ekati Diamond Mine in the Northwest Territories.
More than a decade later, there is speculation that Mr. Fipke has another blockbuster find in the works -- talk that has sent the share price of his exploration company soaring and that generated considerable buzz at this week's Prospectors and Developers Association of Canada convention, which ended yesterday.
"Chuck Fipke has a stealth program in Attawapiskat and there are a swirl of rumours that he has found the holy grail of the Canadian diamond industry," John Kaiser, publisher of Kaiser Bottom-Fishing Report, an investment newsletter, said in a presentation at the PDAC show in Toronto.
The rumours centre around the possibility of a diamond find that could result in a mine much bigger than either of Canada's two existing diamond mines, he said. said.
The Attawapiskat region, just west of James Bay in Northern Ontario, has attracted Mr. Fipke and a host of other diamond hunters, including the Canadian arm of giant De Beers Group.
De Beers first discovered diamond-bearing kimberlite pipes in the region in the 1980s and recently began a feasibility study for its Victor project.
Mr. Fipke is chairman and chief executive officer of Metalex Ventures Ltd., a TSX Venture Exchange-listed junior that has a controlling interest in a parcel of claims in Northern Ontario collectively known as the Attawapiskat property.
Another junior, Arctic Star Diamond Corp., holds a minority stake in the project, and a private company controlled by Mr. Fipke also owns part of the play.
Metalex was a penny stock trading in the 50-cent range last fall until talk began about what Mr. Fipke was up to in Ontario. The stock began to climb and broke through the $5 mark last month.
Yesterday, it dropped 25 cents to close at $4.20 on the TSX Venture Exchange. Arctic Star gained 10 cents to $1.18.
Mr. Fipke was unavailable for comment yesterday.
Metalex has not yet released drill results and analysts say that without much solid information investors are simply betting that Mr. Fipke can strike riches twice.
Mr. Fipke, renowned for his dogged pursuit of minerals around the world, held on to a 10-per-cent stake in Ekati, which is 80 per cent owned by Australian mining conglomerate BHP Billiton Inc. and went into production in 1999.
After years of paying off loans and taxes, Mr. Fipke is believed to be in line to reap the benefits -- in cash or gems -- from his portion of Ekati, which produced $491-million (U.S.) worth of diamonds last year.
While his prospects may be attracting a lot of investor attention, there are other reasons to be excited about Canada's booming diamond patch, Mr. Kaiser said.
He pointed to the onset of production at Diavik, co-owned by Toronto-based Aber Diamond Corp. and British miner Rio Tinto PLC,and stepped-up exploration and testing programs in several regions in the country.
Saskatoon-based Shore Gold Inc., for example, "is putting Saskatchewan to the test" with a bulk sampling program at its Star Diamond Project.
The project is in the Fort à la Corne diamond field in central Saskatchewan, another region that is drawing interest from exploration companies and investors.
Canada accounts for about 10 per cent of the world rough diamond market, and some observers, including Mr. Kaiser, say that could increase to more than 20 per cent in the next decade.
Geologist Charles Fipke sparked Canada's first great diamond rush in 1991 when he discovered what would become the rich Ekati Diamond Mine in the Northwest Territories.
More than a decade later, there is speculation that Mr. Fipke has another blockbuster find in the works -- talk that has sent the share price of his exploration company soaring and that generated considerable buzz at this week's Prospectors and Developers Association of Canada convention, which ended yesterday.
"Chuck Fipke has a stealth program in Attawapiskat and there are a swirl of rumours that he has found the holy grail of the Canadian diamond industry," John Kaiser, publisher of Kaiser Bottom-Fishing Report, an investment newsletter, said in a presentation at the PDAC show in Toronto.
The rumours centre around the possibility of a diamond find that could result in a mine much bigger than either of Canada's two existing diamond mines, he said. said.
The Attawapiskat region, just west of James Bay in Northern Ontario, has attracted Mr. Fipke and a host of other diamond hunters, including the Canadian arm of giant De Beers Group.
De Beers first discovered diamond-bearing kimberlite pipes in the region in the 1980s and recently began a feasibility study for its Victor project.
Mr. Fipke is chairman and chief executive officer of Metalex Ventures Ltd., a TSX Venture Exchange-listed junior that has a controlling interest in a parcel of claims in Northern Ontario collectively known as the Attawapiskat property.
Another junior, Arctic Star Diamond Corp., holds a minority stake in the project, and a private company controlled by Mr. Fipke also owns part of the play.
Metalex was a penny stock trading in the 50-cent range last fall until talk began about what Mr. Fipke was up to in Ontario. The stock began to climb and broke through the $5 mark last month.
Yesterday, it dropped 25 cents to close at $4.20 on the TSX Venture Exchange. Arctic Star gained 10 cents to $1.18.
Mr. Fipke was unavailable for comment yesterday.
Metalex has not yet released drill results and analysts say that without much solid information investors are simply betting that Mr. Fipke can strike riches twice.
Mr. Fipke, renowned for his dogged pursuit of minerals around the world, held on to a 10-per-cent stake in Ekati, which is 80 per cent owned by Australian mining conglomerate BHP Billiton Inc. and went into production in 1999.
After years of paying off loans and taxes, Mr. Fipke is believed to be in line to reap the benefits -- in cash or gems -- from his portion of Ekati, which produced $491-million (U.S.) worth of diamonds last year.
While his prospects may be attracting a lot of investor attention, there are other reasons to be excited about Canada's booming diamond patch, Mr. Kaiser said.
He pointed to the onset of production at Diavik, co-owned by Toronto-based Aber Diamond Corp. and British miner Rio Tinto PLC,and stepped-up exploration and testing programs in several regions in the country.
Saskatoon-based Shore Gold Inc., for example, "is putting Saskatchewan to the test" with a bulk sampling program at its Star Diamond Project.
The project is in the Fort à la Corne diamond field in central Saskatchewan, another region that is drawing interest from exploration companies and investors.
Canada accounts for about 10 per cent of the world rough diamond market, and some observers, including Mr. Kaiser, say that could increase to more than 20 per cent in the next decade.