North Star Diamonds CEO Describes his Company

Apr.18.06 | About: Chanaral Resources, (CRLR)

Excerpt from The Wall Street Transcript's 12/26/05 interview with North Star Diamonds Inc. (NSDM) CEO Walter Stunder:

TWST: May we start with a history and overview of North Star?

Mr. Stunder: North Star is a public company, started only two years ago. We are basically doing two things: we are exploring for diamonds in Manitoba, and of course, we also market diamonds on our Website (www.northstardiamonds.net). We sell diamonds on our Website, so consequently, we have a good cash flow now and we are using some of the cash flow to finance our diamond exploration. And there are only two other companies doing that, one of them being De Beers and the other one BHP, I believe.

TWST: What about Aber Diamond?

Mr. Stunder: That's right, yes, Aber is in there as well. They sell diamonds. However, I don't think they are doing much exploration. They found themselves a diamond mine and they are just sitting there making a lot of money, which I hope to do with North Star Diamonds in the near future.

TWST: Where are you prospecting?

Mr. Stunder: We are prospecting just north of the Minnesota border, so we are actually fairly close to the US. It's approximately 60 miles southeast of Winnipeg, Manitoba. We have drilled there before and we discovered a lamprophyre. There are three geological formations in which diamonds are found: kimberlites, lamproites and lamprophyres. We hit a lamprophyre and that's the only lamprophyre that was found in Manitoba, so we are actually ahead of some of the big companies. You couldn't have done this interview at a better time because we are going to start a diamond exploration program on November 17 or 18. Needless to say, most diamond companies do very badly until they start a drill program. Of course, if they hit diamonds, then the stock does extremely well. So we are just at that opportune time now.

 

2008 Update: After a spin-out, this company now trades as Chanaral Resources (OTC:CRLR).