RADAR: Crystal Exploration (CEI:TSX Venture) Exploring For Diamonds With $50 Million Database

Crystal Exploration Inc.
Shares Outstanding: 28,005,472

cei-chart

In the past 12 months Crystal has positioned itself as an advanced player in the great Nunavut diamond hunt.  The region was made famous by the discovery of Ekati, by Chuck Fipke, in 1998.  It became Canada’s first diamond mine, bought by BHP Billiton and now owned by Dominion Diamond.  The discovery sparked an unprecedented staking rush in the far north, as junior and major explorers quickly scrambled to assemble the most prospective land packages.

Following the market crash and recession of 2008 was a major culling of projects in the North, with companies forced to abandon highly developed properties en masse.  However with the recovery in the price of diamonds and renewed optimism in the resource sector, diamond exploration and discovery is undergoing a renaissance in Canada’s north, rivaling the first wave of successful exploration.

The following chart depicts the average price of diamonds over the past 50 years – an annual growth rate of about 14%!  How’s that for a hard asset investment idea?

historical_diamond_prices_graph

 

In October 2015 Crystal Exploration acquired the Muskox, Contwoyto & Hood River claims in Nunavut.  The total land package encompasses 1,150 square km, 400km north of Yellowknife, near the past producing Jericho diamond mine.

The Muskox kimberlites were originally discovered by DeBeers in 1996, then explored through a joint venture with Tahera Corp through to 2006.  Over $50 million was spent on the project, leaving Crystal Exploration with a comprehensive and rich database to work from.

To date, utilizing Debeer’s database, the company has produced numerous high priority targets for followup drilling.

From the corporate website, the project features:

  • Diamond bearing kimberlites and kimberlite dykes
  • Unexplained kimberlite indicator mineral (“KIM”) trains identified in glacial till
  • Unsourced kimberlite float trains
  • Unexplained geophysical targets in the vicinity of the heads of known KIM trains

Importantly, Crystal is managed by a veteran team with a track record of developing projects from grassroots to production.

Shareholders can look forward to an exciting journey as the company re-examines the vast geological data bank and continues to explore and develop this exceptional land package.

With the Great Canadian Diamond Hunt back in full swing, why not go with the explorer holding a $50 million database in elephant country?