Canadian Diamond Discoveries - New Game, New Rules

The Northwest Territories (NWT) of Canada has emerged as a major new province for diamond mineralisation in less than three years. This is primarily the product of a diligent search in the form of a scientifically based exploration effort. However other factors, including positive aspects of the business and the legal environment have also been identified as assisting the exploration process. In my view these have increased the likelihood of diamond mining becoming a major new industry for Canada. The supportive role of various government agencies has been important. In addition, the character of many of the joint venture deals that have been done has provided an attractive setting for the capital intensive evaluation and development work that is now required to bring the diamond discoveries into production. Perhaps of equal importance is that with the recognition that is being given to the success of the NWT diamond ventures, Canadian explorers are continuing to attract new risk capital for further exploration. This paper attempts to model and quantify the probability of exploration success translating into successful mine development.