Diamond stocks for the highly aggressive

Article Excerpt

Here are two of the most promising early-stage diamond stocks. Both have speculative appeal, but they are buys for highly aggressive investors only. DIAMONDS NORTH RESOURCES $0.18 (Toronto symbol DDN; SI Rating: Start-up) (1-866-802-2010; www.diamondsnorthresources.com; Shares outstanding: 86.9 million; Market cap: $15.2 million; No dividends paid) has interests in seven exploration projects covering over four million acres in Nunavut and the Northwest Territories. Its prospects range from early- to advanced-stage exploration. The company funds its exploration programs with its $2.9 million of cash holdings. Diamonds North’s leading prospect is its 100%-owned Amaruk project in Nunavut. To date, the company has discovered 25 kimberlites at the site. Kimberlites are cone-shaped mineral deposits made up of magma (molten rock) and rock that volcanic activity carries to the surface from depths greater than 150 kilometres. Diamonds form at those depths, under a mix of extreme pressure and high temperatures. The rock in the kimberlites may pick up diamonds on its way to the surface — sometimes…

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