Hello All,
I haven't really been keeping a close eye on Snowfield the last month or so. I consider it a write off in my stock portfolio, but hang on, because who knows what could happen. Yesterday though, I noticed that the volume of trading was quite high.
I phone up the office, and talked with Graham for several minutes and he gave the following insights:
- with the current lawsuit they hope to receive $3 million. Now since I haven't been following much, I had no idea about this. Apparantly the reason why there were only tidbits of diamonds found in the bulk sample was because the dynamite company buried their dynamites too low. This caused an explosion and distruction of the diamond sample. This explains why there were good core samples, but a poor and I mean poor bulk sample report.
- they will be doing a consolidation of the stock, perhaps a 12:1, they will come out with further news in March. This will bring the outstanding stock to 10 mil, and raise stock price.
- they are putting the diamond search on hold for a while, since the diamond market is slow and they are going to focus their time on the gold plots they have, 3 areas. They hope that these 3 areas will bring Snowfield back to life.
Only time will tell, and if this lawsuit is true, there still may be a bright future after all.
FS
