THE DIAMOND PAGE — LETTERS TO THE EDITOR — Premature

Editor’s Note: The Sarnoff controversy (see Aug. 2 issue) and our ensuing editorial have generated a healthy flow of letters to the editor; so many, in fact, that we’ve decided to run the overflow in this space.

The past couple of months have seen much discussion and editorializing about the Canadian diamond exploration industry. Everyone is getting into the game of second-guessing the junior and major exploration companies, diamond exploration geology and philosophy, the diamond market and, most importantly, the share market.

These masterful commentators have been newsletter-writers, stock analysts, shareholders and journalists. Suffice it to say that enough poor information and misinformation exists already; we do not need more.

A few distinct points do need clarification. First, no company has diamond assays or reserves to report. No company (in North America) is yet at that stage. Only a few grab samples have been taken. In base or precious metal jargon, some of these may be significant “geochemical anomalies,” no more and often less. It is premature, and often misleading, to be releasing data at such stages of programs. Investment analysts and shareholders have clearly shown that they do not know how to interpret or discern these preliminary results. And yes, to the geologists who do understand these results, keeping them confidential for competitive reasons does make sense. It is not in the shareholders’ best interest to release information that might advance the program of competitors, in this or any endeavor.

Some of the results released to date are very significant in terms of diamond exploration geology. Important discoveries are being made. It may be time to stop second-guessing the diamond geology and pay more attention to the engineering and economics aspects of these discoveries.

This has turned into a highly speculative and temperamental investment climate. This must not affect the serious and demanding business of diamond exploration and development. Investors should choose their vehicles based not only on perceived results but on competent, experienced and knowledgeable management whose job it is to make the correct decisions based on their reliably obtained data. Let these companies do their job.

Economically important diamond exploration and development in North America and elsewhere will continue, as will a sound diamond market. Many companies are in the business to ensure simply that.

Howard Coopersmith

President

Diamond Company N.L.

Fort Collins, Colo.