Pick of the Diamond Explorers – Top Diamond Picks Come With High Risk

Article Excerpt

Here are two promising diamond exploration stocks. Both have speculative appeal, but they are buys only for highly aggressive investors. SHORE GOLD $3.80 (Toronto symbol SGF; SI Rating: Start-up) (306-664-2202; www.shoregold.com; Shares outstanding: 182.7 million; Market cap: $694.3 million) owns 100% of the Star diamond project in the Fort a la Corne area of Saskatchewan, which hosts one of the most extensive kimberlite fields in the world. Shore Gold has completed underground bulk sampling at the Star project, which returned high caratgrades of diamonds. By the end of this year, it hopes to complete a bankable feasibility study supporting a diamond mine. The company aims to complete construction of a mine by 2012. Shore Gold also holds 60% of the nearby Fort a la Corne Joint Venture. Newmont Mining holds the other 40%, as well as 9.9% of Shore Gold’s common shares. The Fort a la Corne Joint Venture includes the Orion kimberlite cluster, where exploration is less advanced than at the Star Diamond…