Turning 100K into 1K

How to turn $100K into $1K and be ecstatic about it?

In the frigid North of Canada, there exists rock that is very old. 100 to 200 million years old...or even older. This rock called kimberlite came from old volcanoes and many of them contain diamonds.

How does one evaluate this kimberlite to determine if it can support a diamond mine?
Once it is determined that the kimberlite body does contain diamonds and there is a good estimate on total tonnage of material and total amount of diamonds, the missing piece is the valuation of those diamonds. Valuations of diamonds is more of an art as there is so many permutations that can occur in a diamond population.

To determine the value, a bulk sample of the kimberlite must be taken to extract enough diamonds to evaluate.

The end result is get close to 1000 carats of diamonds. 1 carat = 0.2 grams of mass.
So, the end result is to get 200 grams of diamonds.

The cost of a big bulk sample program from site to lab could reach into the $10 to 20 million range.

@$20 million and 200 grams....that works out a cost of $100K per gram of material

For a bulk sample program to be successful, a good valuation is needed that will be used in conjunction with grade and tonnage to determine how feasible a mine is.

In the case of CH-7 (kimberlite at Chidliak), a value of $200 per carat would be excellent and contribute very positively toward a positive mine decision.

1 carat = 0.2 grams of mass. $200 per carat equates to $1000 per gram or $1K per gram.

A positive result in this case would be...however counter-intuitive....spend $100K for $1K of value.

That would be a success story.

Specific to CH-7, the end result will be coming up in the next 6 months as the ~200 grams of diamonds is on it's way to a lab to be extracted out and then it will be forwarded for valuation.