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Golden Saint - Diamond Club


PreciousCargo1
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Came across a company listed on the London Stock Exchange - called Golden Saint Resources. Apparently they are setting up a diamond club where shareholders can access their polished stones at a discount.

 

Has anyone heard of them and any idea how this might work?

 

Thanks in advance.

 

P.S. Found a presentation in a cafe in HG and thought it sounded interesting especially if there is good access to loose stones.

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Good access to diamonds is staggeringly easy.  Check out the 'diamond finder' utility at the top of the page.  There's something like 50,000 stones listed for sale with overnight delivery.   Presumably the advantage you're seeing is that they will give shareholders a discount.  It seems unlikely but I'm confused right out of the gate.  If they're selling at below market rates, why would you want to own their stock and if they're selling at above market rates, why would you want to buy goods from them?

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Presumably the advantage you're seeing is that they will give shareholders a discount.  It seems unlikely but I'm confused right out of the gate.  If they're selling at below market rates, why would you want to own their stock and if they're selling at above market rates, why would you want to buy goods from them?

If you Google Golden Saint Resources, they're incorporated in the British Virgin Islands, and nominally about exploiting gold and diamonds from Sierra Leone.  Any shareholder "advantage" is the diamonds won't go through NYC or Antwerp (among others).  << You want GIA with that? >>

 

Looks like it would have been potentially fun to get in on the startup phase, but at this point, they're just looking for Chumps.  (Watch the first half hour of "Wolf of Wall Street" to get a sense.)  This is one of those operations which curiously has no fingerprints on the neatly-produced stacks of financial reports. ;p

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Here's a release from them, looks like GIA and Antwerp. Nothing more on what the deal is for shareholder but maybe they'll discount some.

 

http://www.investegate.co.uk/golden-saint-rsrcs--gsr-/rns/airborne-survey-update/201403251120041125D/

 

Further to the announcement dated 6 February 2014, which set out the findings from the initial interpretation of the Company's airborne geophysical interpretation on its three projects (Tongo ("Tongo Project"), Baja ("Baja Project") and Moa ("Moa Project")) in eastern Sierra Leone, Golden Saint Resources Ltd (AIM: GSR), a Sierra Leone focused diamond and gold exploration company, is pleased to provide an update now that the interpretation has been completed.  An update on the state of the first diamond shipment from Sierra Leone is also included for shareholder interest.

 

Highlights                                                                                                              

 

·    Geophysical consultant, Core Geophysics, completes its detailed structural analysis for prioritising diamond and gold targets over the three project areas

 

·    Strong ENE- WSE trending structural trends at Tongo and Baja projects, consistent with the regional structures hosting kimberlite dykes and known diamond resources

 

·    A number of major structures and fine scale fabrics which may control or host gold mineralisation at the Moa Project have been identified.

 

·    In excess of 150 targets generated for investigation, with 38 targets ranked priority 1.

 

Overview

 

As announced on 6 February 2014, Golden Saint commissioned a high resolution airborne magnetic and radiometric AMAG survey over the Company's three exploration licence areas in eastern Sierra Leone, by Canadian geophysical contractors, Geotech Airborne Limited ("Geotech"), to provide focus in both identification and prioritisation of structural gold and kimberlite targets for ongoing and future exploration programs.

 

The 5,405 line kilometer ("km") geophysical survey completed over an area of approximately 340 km² covering the Company's core holdings at Tongo, Moa and Baja, on 100 metre line spacing and at a mean terrain clearance of 100 metres. Final processed data was received at the end of January 2014 and has undergone detailed structural analysis by independent geophysical consultants, Core Geophysics.

 

Interpretation

 

Interpretation by Core Geophysics of the aeromagnetic and radiometric surveys has greatly improved the geology and structural understanding of the projects.

 

Within the Tongo and Baja projects the processed data has identified strong ENE- WSE trending structural trends beneath transported cover, consistent with the regional Tongo Field structures hosting kimberlite dykes and known diamond resources located within neighbouring tenements. At the Moa Project the data has identified a number of major structures and fine scale fabrics which may control or host gold mineralisation.

 

At the Tongo Project a total of 37 potential dyke targets, 14 potential pipe targets and 5 potential alluvial sites have been selected from the processed data of which 12 potential dyke targets, 3 potential pipe targets and 2 potential alluvial targets have been given a high priority rank of 1.

 

At the Baja Project 79 potential dyke targets, 4 potential pipe targets and 5 potential alluvial sites have been selected with 17 potential dyke targets and 2 potential alluvial targets given a high priority rank of 1.

 

At the Moa Project 6 broad target areas for gold mineralisation have been defined of which 2 have been given a high priority along with 3 sites for potential alluvial diamonds selected along the Moa River.

 

Executive Chairman, Cyril D'Silva stated, "We are extremely pleased with the results from the geophysical interpretation of our recent airborne survey. Exploration and follow-up targeting at all of the Golden Saint projects have been greatly enhanced by the acquisition of this geophysical data, allowing us to focus on priority targets and once again highlights the prospectivity of the region and our focus on the Sierra Leone diamond fields.

 

Diamond Shipment update

 

As previously reported on 19 November 2013 and further on 6 February 2014, Golden Saint's first shipment of approximately 400 carats of uncut, gem quality diamonds have been exported from Sierra Leone to Solid Gold Jewellers Pty Ltd ("Solid Gold") in Perth. The uncut diamonds within the shipment varied in size from 1 carat up to 13.9 carats and comprise white diamonds, brown diamonds and yellow diamonds.

 

Solid Gold has now advised that 107 stones have been sent to Hong Kong to GIA for certification, grading and laser inspection and that they are now expected to complete the process by the end of April 2014.

 

In addition, Golden Saint is pleased to announce that it shipped a second batch of rough to Antwerp on 14 February 2014 which is currently being cleaned and having windows put in so the likely outcome, once polished, can be assessed. Total weight of rough sent in the first and second batch was 316 carats and currently the rough (melee) being held in Perth is 83.39 carats.

 

The Company will keep shareholders informed of any material updates which it receives on the assessment of the rough that has been sent to Antwerp.

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Interesting reading, but there's nothing you can put a dollar figure on.  If you're weighing this as an investment it's beyond the scope of this forum... I'd suggest starting out with bigger diamond mining companies and working your way down to find out what's being left out of this narrative (AKA "report").

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I see nuthin' in terms of whether or not you should buy goods from them, I see zero advantage and a whole bunch of disadvantages.   It sounds like they're distributing through a store in Austrailia, Perhaps you could show up there and go shopping. 
 

Should you buy their stock?  As with the above, I see nothing to suggest you should but it's obviously intended as a speculative venture and who knows what the future will bring.  As best I can tell, it's primarily an exploration company.  Are you interested in investing in that?

Edited by denverappraiser
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Quite late to the party, but yet another sceptical voice here: the enterprise may or may not be profitable (and if it is, for whom?), but the chances of you finding an interesting diamond in a batch of 107 stones are pretty low. We have to reject about 90% of what gets put in front of us by wholesalers because in one way or another it is unsuitable for us as a retailer. This is hundreds of stones every month, and we are a smallish shop.

 

Also, it's not clear to me how the prices would be lower: they have a mining operation and a manufacturer upstream, just like any other wholesaler or retailer. What they don't have is scale in either of those operations, so unit costs are likely to be significantly higher, probably higher than the typical retail margin - Blue Nile is at less than 20%, and they are a very low cost operation (and a substantial part of their income comes from finished jewellery, which has a much higher margin than loose stones).

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