Dear member,

As of today we will add Mexivada Mining to our model portfolio in section 'high-speculative' juniors. Mexivada is trading at 53 cents these days which marks an excellent entry point for those investors who want to buy or add to their existing positions. Mexivada tumbled down from a $1.19 high last year and seems to have bottomed out in the low 50's range. The short term excitement could very well evolve from Mexivada's Diamond project at Mayoko ROC.

Yesterday Mexivada announced another diamond discovery, and earlier that a metamorphosed kimberlite dike may have been found that could host large diamonds, including an abnormally high percentage of fancy coloured gem quality stones.

What investors should realize is the rarity of such fancy colored diamonds, especially blue and green gemstones since only about 5 places in the world do host blue or good green diamonds like that. Right now Mexivada is testing its Madoka area in order to demonstrate the existence of a kimberlite dike..Kimberlite indicator minerals and 4 big macro diamonds (to 4.5 mm) and one small violet diamond have been retrieved (at nearly the same place) from the property already which simply means that kimberlite dikes or pipes could be very nearby. And their diamond-favorable Lepandza-Makoubi-Madoka-Bouawsa corridor is a whopping 9 by 12 Km in size, which could hold many pipes and dikes of kimberlite. Furthermore, their Bilala-Camp Avoine target area, where a 22 mm gem white diamond and a 7 mm blue-yellow diamond were mined is a separate, +7 km long target area located 4 km further to the southwest.

Now what does it mean for the investor if Mexivada succeeds in demonstrating a kimberlite dike full of fancy coloured gem quality stones?

Well, a lot since fancy coloured quality gem stones are selling for abnormally fancy high prices. This was clearly demonstrated in Switzerland last week when British jeweler Laurence Graff paid nearly $5 million for a 3.73 carat pear-shaped 'fancy vivid' blue diamond, see press release:

Blue diamond fetches $5 million, sets record per carat
http://www.reuters.com/article/marke...

END.

Now when you realize that Mexivadaâ?Ts market cap just exceeds the $15 million dollar mark you donâ?Tt have to be a genius in order to understand what a disocovery of a kimberlite dike hosting thousands of gemmy macro stones including an abnormally high percentage of fancy coloured ones could do to the stock priceâ?¦ The company's market cap would be a multiple of current levels instantly.

Sure enough the burning questions remains how much patience is required here. Can we expect a kimberlite dike/pipe discovery within weeks/months? What has management to say about the odds of a kimberlite dike/pipe discovery this year? How close are they? In an earlier press release they announced that a metamorphosed kimberlite dike may have been found. Are they testing it right now? I asked Mexivada CEO Rick Redfern, hereâ?Ts his reply:

Rick Redfern: We are testing it right now, Eric. We have posted a picture of the dike as the bottom photo on our ROC Congo page of our website at www.mexivada.com. The chances are higher that it is a metamorphosed basaltic volcanic dike rather than a meta-kimberlite dike, but we canâ?Tt be sure until we 'pan it down' to obtain and look at the heavy minerals from the crushed dike sample.

None of us in the company, even our diamond expert, have seen a metamorphosed Archean kimberlite dike, as do occur to the north of us at Mitzic, Gabon. In addition, it may be seen in the web photo that the dike is cut by gold-appearing quartz veins, and gold is found in the stream sediment samples at Madoka. The amazing thing about our 'Corridor' is the distribution of the big diamonds, after only a couple of streams in the area have been tested by sampling. The largest was found up top at Makoubi (see new maps on our website). I would guess that we should find the diamond pipe(s) in between Madoka and Makoubi, and also near Lepandza, where which is the only place in the ROC where a 'G-10' diamond garnet has been found.

We are 'hitting this area hard' , right now, even though the rainy season has not ended. We don't stop for bad weather, as many companies in Africa do. I hope that we will have delineated some kimberlite pipes and dikes by September. This is, in addition, very inexpensive exploration consisting of stream sampling and test pitting the area on a grid. We have 2 crews working on the diamonds, and one crew working on our brand new Lepindzi gold discovery.

One more comment, Eric, about the colored diamonds. We have recovered alluvial diamonds from several places in our ROC work areas, and more of the diamonds found (see Bikelele diamond photo on our website) are rough and broken than are clean and pristine. But,,,,, if you will look at the blue green stones, from both Bikelele and Madoka, these blue and green stones are mostly pristine and unscratched. That tells me that the local kimberlite pipes and dikes may be highly enriched in blue and green stones, which are incredibly valuable. I spoke with a large commercial diamond seller today, and he told me that 1 carat roughs in bluish colors, even if having 'carbon dust' inclusions in them, are selling for $75,000 to $150,000 per carat. Your auction example above shows what the really good stones sell for, +$1,000,000 per carat faceted.

Our work areas could be a new colored diamond province. The blue in diamonds is thought to be due to boron in the diamond crytal lattice, and our work area is a boron-rich pegmatitic granite province, which fits with the abundance of blue-green stones here.

END.

Technical view:

NOTE OF CAUTION:

Stocks like these tend to be extremely volatile so please be careful with chasing the stock at share prices far above current levels. Yes, if the company succeeds in demonstrating a kimberlite dike (before September)hosting an abnormal high percentage of fancy coloured stones then we have a winner here. Needless to say no guarantees can be given otherwise the stock would already be trading at multiples from current levels.

Stay tuned for part II of 'The Investment Case For Junior Mining Companies - part II'

MODEL PORTFOLIO:
https://www.golddrivers.com/alt/tgdr...

Best Regards

Eric Hommelberg
The Gold Drivers Report

www.golddrivers.com