SNO has never been very good at keeping us up to date via news releases. The best way to get current information from them is to call or email them. Graham is usually very prompt in his responses.

Many of us still believe that SNO will eventually find a good deposit of diamonds, it just takes time and lots of money. They have a very competent consulting geologist working with them and a drilling program that will go ahead soon. But, even if they discover a high grade pipe or dyke or whatever now is not the time that such a discovery will effect the stock price significantly. Look at what's happening with Peregrine.

To me, acquiring a piece of a silver project seems like a shrewd move. If you have been following the precious metals reports then you can see why they would be interested in silver. Did you notice that their partner is a private company, presumably with less regulation in a mining friendly country, too.

Financing the acquisition is going to be tricky. Many economists and seers (for what it's worth) indicate that we should start to see economic recovery in 2010. When recovery does begin, if you believe that precious metals will rise significantly in price due to low interest rates and the inflationary effect of all the new money that has been "printed" then you would expect to see the stock price rise too. This will make equity financing feasible again.

What have they got to lose anyway? Would you sit around crying over bad results watching your dreams go down the toilet or would you find another way to survive. This tells me that they are not ready to give up and that they still believe in their diamond property. Who knows how high silver and gold will go but it could soar, making this move look brilliant. When the going gets tough, the tough get going. I'm betting on SNO to pull this one off. Maybe their future is brilliant, in other than diamonds.

BGT