Dianor Resources

Ok, at my first glance, this one has a lot of optimism behind it, but for those of us who are optimists:

What I like:
1. The market hasn't realized what has been happening making this very under valued in 'theoretical terms'.
2. It's local.
3. Potentially huge
4. Really cheap
5. It is already near the low's, so not much to be worried about in terms of losses
5. Given the above, a potential buy-out

What I'm concerned about:
1. Further dilution to an already big pot of shares.
2. Volume is very low, so getting in is one challenge, getting out is another
3. Time frame may be long

Here are a couple of links to stimulate the imagination... keep in mind, this is the CEO and he wants you to invest your $.

http://agoracom.com/ir/DiamondsNorth/forums/discussion/topics/431598-dianor-makes-history/messages/1412295

http://www.microcapmarkets.com/forums/penny-stocks/430-dianor-resources-set-sparkle-worlds-largest-ever-bulk-sampling.html

Nothing going on with DOR at the moment. It has been an extremely speculative stock over the past few years as there simply is no funding to progress at this point, and very little in the way of getting any in the future.

They have potential to make a bit of money by selling their iron ore reserves... but this has a number of limitations: 1. There is no money to drill and prove the size and scope of the resource; 2. The existing resource estimates are from very old drilling and not in accordance with any form of current compliant estimate standards; 3. The ore which was formerly mined by Algoma Steel has impurities (arsenic) that make it difficult to process due to environmental problems; 4. The ore contains recoverable amounts of manganese (good), but its quality in terms of iron content - although good grade - is slightly below many of the current iron ore developments going on around the world. This all being said, the ore body is very large which gives some potential to sell it to someone interested in this deposit. (This is the current rumor). However Essar is likely not very interested as I have personally spoken with the former CEO about potential re-development, which was completely ruled out due to uncompetitive extraction costs and environmental concerns.

Realistically the only thing I see happening for this company is a reverse split followed the issuance of more shares to finance a DMS to prove the economic viability of the diamond extraction. I may well be wrong as there hve been no news releases in a long time and shareholders have no idea what is going on. There wasn't even an update from the Aug. AGM. I'm holding my shares in case something happens, but I'm not expecting anything in the near future.

Sidebar question here, I have been looking a lot at diamonds recently and wondering what is the future for retail diamond pricing if the economy worsens. Do you think there is the possibility of huge discounts if I hold out for economic disaster or are they subject to the same market forces that prop up gold during recession?

Also, where is the best place to buy a high end diamond? Anybody heard anything about Blue Nile and other online retailers, or would I be better off just going to Tiffany's? Any buying tips?

I think Diamonds will continue to increase in price due to deminishing supply globally and increasing demand in arease like India and China. I don't forsee an iminent drop in prices even if economic disaster is avoided. I don't think they saw much drop in prices during the last recession (I could be wrong, but you could look that up... I am also interested).

If you're looking to buy, I don't have much to suggest... you are always going to get ripped off. This has always been a sore spot for me because nobody ever wants to throw money away, but that is the nature of the industry and for some reason we accept that. Also, to be honest 99 percent of people would rarely even be able to tell the difference between a relatively un-coloured diamond and glass. Good luck with that one, but feel free to discuss on here and maybe I can learn a little about them.

Well, I totally agree about 99% of people not being able to tell the difference between glass and diamond. I really didn't know what I was looking at. Also, apparently they have specialized lights in the stores, which creates a lot of artificial sparkle not found in natural/office lights.

You have cut/clarity/colour advertised as the three most important aspects, with a rating scale provided in store for these. This is the most basic level you can look at. I have been doing some homework over the last 2 weeks, and there is much more to it, but for the basic level your point about not being able to tell the difference is quite relevant. A lot of the upsell appears to be aimed at getting a diamond that is flawless beyond what is visible to the eye. This is a waste of money in my opinion. If you can't tell there is something wrong with it by looking at it, what is the point of paying more. Carat size and general shape (fancy cut, round, princess cut, pear, emerald cut, etc..) also play a big part in price. There is an exponential rise in price as carat size increases, and a lot of the fancier cut diamonds can be a little cheaper as the specifications for perfect light refraction are supposedly much more forgiving (although that may be partially offset with the difficulty of working with irregular shapes), and a higher grading can be assigned than would be the case for the standard round cut.

From my understanding, colour is least important as in most half-decent diamonds you will only be able to detect the difference in colour when compared to a better diamond right next to it. clarity is next in importance, since again, any half-decent diamond will require a microscope to detect any "inclusions" (blurring due to very tiny concentration of other elements contained in the stone or microscopic fractures). The cut is a factor that actually seems to be important. The better the cut, the better the dispersal of light, which gives the brilliance, etc...

Now it doesn't end there, there are also some more advanced considerations. You also have to consider factors such as polish and symmetry (I think it is important to halve highest quality for these again for light dispersal), which are generally not discussed in store, and you have to view an AGI (American Gemology Institute) certificate in order to learn about this. There is also a quality called fluorescence, which causes distortions to the appearance of the diamond under certain spectrums of light.

Up to this point, its not so bad, you can understand these qualities and choose along a price/quality spectrum without too much difficulty. However, this still is only part of the picture. You also need to understand the dimensions of the diamond (table: top flat surface, crown: upper bevelled portion of the diamond, girdle: middle portion where the upper and lower bevels meet, pavilion: lower bevelled part of the diamond, and cutlet: the bottom tip). You need to find the optimum ratios of table to overall height ("depth"), angle of the bevels, and width of the girdle in order to have perfect light refraction, and provide the best shine. These characteristics are where the bulk of the quality comes from, and are very difficult to calculate and understand for an average buyer (myself, I have no clue how to evaluate these criteria).

As far as shopping, I agree you are going to get ripped off going to the mall. There is Tiffany's which is a pretty high end retailer, where at least you know what you are going to get, but you have to pay a high premium to get it. Another alternative I am looking into is online retailers, but then there is an issue of trust and selection is difficult using only pictures and AGI reports (also need to deal with insurance during shipping, shipping costs, returns hassle, etc...).

One of the last visits I did to local retailers was very interesting. The guy was a gemologist and took me behind the counter to show me the machines he was using and how he basically shops online using AGI reports, and then chooses based on that and then does both a machine analysis and physical inspection to make sure the AGI report is accurate (he mentioned it is only 70% accurate in his experience). He recommended to buy the diamond separately of the setting so that I can get an appraisal of its quality (generally can be returned if it is not good). From there, it is a matter of finding a setting in the right style and having the ring put together. I am not sure what the catch is with this guy, but he offered to work with me to find one online, and then make a setting based on any design we liked to match. Sounds very interesting, and the price difference of buying online is a huge savings (maybe 50% or so on 5-10k ring). If I get a second opnion on his appraisal, it should be pretty safe, and I am certainly no worse off than buying at the mall.

Anyway, that was what I have learned so far, and it logically comes back to the question of what is the point in spending that much on a ring anyway? Is it worth it, or could I just bank it and retire a year earlier from the investment growth? Can't I just get some diamond-shaped glass/crystal instead of actual diamond? I wish it were that simple, but afraid not....

I will report back if there are any additional developments

yes, i went through this trying process and since i had money burning holes in my pocket at the time working per-diem for living expenses plus tons of overtime robot contracting for "Generous Motors" at the time....

I was working in Ohio and found these guys http://www.mcgivern.com/ and had them say they would ship it to me in Michigan to pay no taxes if shipped out of state (supposed to declare), I got a nice IF, G (skimp on colour is very hard to tell, if it has inclusions big enough you can see them)... and had it appraised in town here at Savoys for 3 times what paid there...