Hi Jeremy:

Great to hear from you. An interesting question: SPQ vs KWG.

I have a bunch of SPQ, and I've been in it for some time, and I'm long, real long. I've only taken profits once, but I quickly bought back in, and have a dollar cost average of about 12 cents. Downside risk is minimal with a base somewhere around 10 cents although it recently had some trades at 8.5 cents. In my opinion, the upside for SPQ over the next 12 months is huge.

The ironic thing is that I finally bought into KWG today. A small position, albeit, but a position. I don't now how much upside KWG has but it may be very good. Here's my reasoning.

1) In my last conversation with Neil Novak, he enthused quietly at one point about potential "kimberlite" in the new aerial surveys.

2) In QQ_Girl's post today about the upcoming Ring of Fire luncheon, she writes:

"their belief is that it was a magma flow, from the west with the east side of the “ring” being the end/edge of the flow – magma inside/vms around the edges and diamonds on the outside"

This information came from her conversation with folks at IBK and confirms what Neil Novak mentioned. (Remember, we can't confirm geologically anything at this point but the drills are in the field. There may be some fabulous surprises.)

3) The recent daily volume of KWG on the TSX has been quite amazing. Does someone (big corp?) know something? I think so.

4) One final point: SPQ has 299 million shares outstanding; KWG has 244 million shares outstanding. That's over 1/2 billion shares. There's a lot of liquidity so you can get in and out at points which you choose.

5) Sorry. One final, final point which I just thought of: Ernst & Young has written a report (today) underlining a strong note about future base metal prices. They will continue strong. (Clearly gold and platinum also have very bright futures.)

So there's some background. As I wrote some time back, the diamond industry is highly controlled and manipulated. I think this is a problem. However, McFaulds may be a new ball game when it comes to diamonds.

If I had $10 grand, I'd probably invest $8 grand in SPQ and $2 grand in KWG. Both are highly speculative even given the likelihood of some terrific upcoming news releases.

My humble thoughts, only. And note, I appreciate the question, but I'm not a professional investment type - I don't have a CFA nor have I taken the Canadian Securities Course. But I have done my own due diligence, I'm active on these bull boards, and I have invested my money in SPQ, NOT, FNC, FWR, and now KWG.

I'm long on McFaulds juniors. Some very exciting times are ahead and I look forward to excellent an ROI on my McFaulds juniors. Once SPQ hits $1.00, I'll visit you in Ilderton to share a favorite beverage of your choice.

Snug