The exploration activities of Poplar Resources (PPX-V) have caught the eye of Canaccord Capital’s resident diamond expert, David James. The junior has been exploring for diamonds in Finland and Sweden, but recently broadened its focus to South Africa, where it holds interests in kimberlite fissure projects.
In a recent research report, James describes the company as “a low-priced, speculative ‘special situation’ buy,” with the caveat that more work is needed to prove-up economic tonnage on the South African properties. He also points out that mining small fissures is not without its challenges.
Through an affiliated company, Savannah Diamondfields, Poplar has an option to earn 60% of two property packages that host substantial strike lengths of confirmed and potential kimberlite fissures.
The Aardvark project, near the town of Theunissen, is on strike with the operating Star mine of Messina Diamond and the Rex mine of Rex Diamond Mining. It has five fissures with a combined strike length of more than 20 km. The Barkly West project, 45 km northwest of Kimberley, is near two producing fissures and numerous past producers.
Poplar has a third fissure, the 100%-owned Karmel project in southern Orange Free State, near the Lesotho border. It hosts a kimberlite fissure system with an 8-km potential strike length, and once produced diamonds from a small pipe and a portion of a fissure.
James is also keeping a close eye on Poplar’s Scandinavian projects, still in the early stages of exploration.
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