For those, like myself, that got into this play when the s/p was in the $0.40 range, these past few weeks have been hard. SNO shares have fallen back to a point where the value of the company's assets are not being priced into them. This is not to say that the price cannot not drop further, as there is still the influence of better news coming from the SRC and De Beers which probably accounts for the price to be holding its current level. However, the share price has proven to be capable of going much lower than its present level as recently as early 2006. The lowest low in 2006 was 9 cents and this low could be tested if the forthcoming news from the SRC and De Beers is disappointing. So, the courage of long term investors may still be tested in the weeks ahead.

In spite of the possibility of a further drop in the share price, I have concluded that SNO still represents a bargain and I have continued to increase my holding. The seemingly "valueless" assets are far from this in reality. I'd like to go a little further into these assets in the following paragraphs:

Firstly, the Mud Lake deposit has not been fully drilled and still represents a great prospect for the company. There is no doubt that the indicator minerals point to a deposit that may host a good quantity of macro diamonds. If this is allied to the close proximity to Yellowknife, the prospects of a positive results for Mud Lake are still looking good.

The lack of prior drill core results from Mud Lake is not suspicious, but an indication that Snowfield may not have wanted investors to judge the deposit based upon a few tiny core samples. This is understandable, as recent diamond exploration in Canada has shown that bulk sampling is really the only way of reliably proving that a resource is economically viable. Indeed, the Victor mine was almost left forgotten based upon disappointing smaller sampling results.

With investors seemingly placing very little value in the Mud Lake deposit (at least in the absence of more results), the company is likely to be not so concerned about whether core results may lower investors perception of the deposit. In many respects, the likelihood of more diamonds being found in the cores samples stands a good chance of re-establishing the deposit as the flagship asset of Snowfield. For this reason, we are likely to see much more drilling activity and core sample results in the coming weeks. These will allow Snowfield to get a much better understanding of the kimberlite deposit and the distribution of diamonds within it. If past core samples are anything to go by, I speculate that the share price will be bolstered by more positive results, but this still remains to be seen.

Another important asset of Snowfield is, of course, the Ticho property itself and its integral claims. There is an abundance of highly encouraging targets on the property. Those close to Mud Lake have a mineral train that indicates that diamondiferous kimberlites are close at hand. In addition to its highly encouraging land holding, Snowfield has strengthened its exploration team with the addition of Jennifer Burgess who has an exceptional experience and track record that will augment the strength of the existing team that has been working on the Ticho Project. From a speculators point of view, extremely active exploration program is likely to yield a good prospect of encouraging news releases in the months ahead and the associated upside potential in the share price. In my opinion, this is far from valueless.

Aside from the kimberlites that are known to exist in the area of Mud Lake, the Wire Claim property holds another good prospect for a potentially new kimberlite find as the following excerpt from a Snowfield news release testifies:

" The Wire claim is located approximately 16 km north of the Mud Lake kimberlite discovery and covers approximately 170 ha. (415 acres). An airborne geophysical survey identified an area of interest. This area was subject to a ground magnetometer survey to further clarify the anomaly. This ground mag survey confirmed a positive magnetic anomaly about 300 meters in diameter under a round shallow lake. Further exploration, including the drilling of two holes, has been recommended by the report writer".

One of Snowfield's drills will be moved up to the Wire Claims while it is still frozen. Again, this is good news for speculators, as it is easy to see that a good upward spike in the share price could be easily on the cards if more kimberlite is found at the Wire Claims. So, potential value is there and investors should bear this in mind. It is interesting to note, that the planned drilling of the Wire Claims is being done before any analysis of the surrounding indicator mineral trains. This, in turn, shows the flexibility of Snowfield's operations and approach to exploration. The willingness to deliver value to its share holders is there and is being exploited to its fullest.

Perhaps the biggest upside potential has already been mentioned in this post and that is the potential of low cost mining in the area that Snowfield is concentrated upon. There are known to be multiple kimberlite bodies in the area and it would take only one of them to host a modest amount of diamonds for a mine to be a very real prospect. it may take months or years, but share holders still have a great chance of having their investments pay them back either along the way or as a "home run" when the company is sold to a mining major.

To conclude, I own shares in another diamond mining company that has yet to release any news of its activities. The shares in this fledgling company are at the same price as those of Snowfield. When comparing the assets and potential upside of both companies, Snowfield wins hands down as representing outstanding potential for upside in the short, medium and long terms compared to the current share price.