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    May 27

    untitled-canada.pngThe discovery of a diamond mine in Vancouver, Canada has sparked serious interest. Near Saskatchewan, miners recently came across a massive deposit of coal. The company involved with the mining venture is Goldsource Mines, Inc, which says it was shocked with the finding, especially since they were not even mining for diamonds. Initially, the company was drilling over the past winter looking specifically for kimberlite. However, within 80 meters beneath the glacier, the coal was found.With this discovery, Goldsource Mines, Inc continued drilling, this time focusing efforts on the seam of the coal mass. What they discovered was a formation that emitted off a type of magnetic signature but upon further study, they found it was not the sought-after kimberlite, but something even more precious. Even more surprising was that finding coal in this particular area of Canada is rare.

    In fact, the Minister of the Canadian Energy and Resources states they had no idea that coal was in existence in Saskatchewan. As a result of finding the coal, people from other diamond mining companies have flocked to the area adjacent, hoping they too will have the same type of fortune. Most of the mining now being done by other companies is near the border of Manitoba.

    Because the finding of this coal is so significant, five diamond mining companies as well as 10 people have sent in application whereby they would be given permission to explore further for more coal. The applications received would cover an area more than one million hectares, again the majority of the land being close to the Hudson Bay. Whether more coal will be found or not, it is certainly showing promise.

    The diamond market is in a frenzy mode with this exciting news. As a result, stocks for Goldsource have skyrocketed. Then, it is expected that stocks for this diamond mining company will continue to rise as more and more information comes available. Considering there is a real potential for both sub-bituminous and high-ranked bituminous, there is likely to be a positive outcome for Goldsource and other mining companies.

    Two individual announcements have been made to the public from Goldsource, both helping to increase stock for this company. Following the first announcement, stock rose .35 in one day. The interesting thing about the coal discovery is that prior to this, people did not know much nor did they care much about Goldsource. However, this company is now in the limelight with investors paying close attention.

    For more than 100 years, lignite has been mind in the Saskatchewan area but the only thing found has been low ranking coal that is used for burning in Canadian power plants. With this type of coal, both power plants and steel mills benefit, even though there are some people who have concerns over gas emissions from this type of burning.

    However, when it comes to diamonds, the discovery of this large piece of coal, different coal, things have changed dramatically. Everyone involved – people from Goldsource, as well as the other companies and individuals who have filed for application, are remaining optimistic that this find is not simply a one-time deal. Most experts believe that if this size of coal was found, chances are good that more exists. Now, it becomes a game of competition to find other pieces.

    Diamond mining as a whole is a tough business. Often this industry sees a lot of promoters who have huge dreams but little output. Obviously, for Goldsource finding this type of coal, this gives all the other diamond mining companies hope that they too will experience such a remarkable find. When it comes to diamond miming, Canada is the third largest producer following Botswana and Russia.

    It is estimated that there are some 30 diamond miners, some successful such as Goldsource but many more not. The problem is that while there are some reputable companies, those following the rules and working hard to make an honest living, there are some companies that do not live by the same level of integrity. However, with Goldsource’s reputation and this new coal find, it is expected that the diamond mining business will be seen even more favorably.

    The thing that makes this coal discovery so wonderful is that the kimberlite Goldsource was actually mining for, less than 2% is even rich enough in diamonds to be worth messing with. That means that while kimberlite is found, most often people will not even mine it. Even so, some diamond mining companies are fortunate such as the Diavik Mine, which is the second largest mine in all of Canada. In fact, this particular mime produced over eight million diamonds back in 2005.

    Perhaps with the coal found by Goldsource, other lesser or unknown mining companies will have the opportunity to also discover something significant, which would help the diamond industry while also giving them the opportunity to trade on the stock market.

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