Atacama has acquired mineral rights for two diamond properties. The 273 acre Cabo Diamond Project is located SW of the community of Cobalt, Ontario. Accessible by road, the property comprises two diamond showings and an exploration shaft. Exploration in the early 2000s included diamond drilling, trenching and geophysics. Initial sampling recovered 96 diamonds including a few macro diamonds. Based on these findings, Atacama is planning extensive and intensive exploration for this site. The A1 Kimberlite Diamond Project of 370 acres is located 14 kilometers NE of the historic mining community of Kirkland Lake, Ontario at the junction of highways 672 and 66. Significant work has been performed on the one kimberlite pipe on the property and recent till samples revealed a high level of chromium garnet which is an indicator of a diamond bearing kimberlite. Another pipe saw a recovery of 7 diamonds, two of which were macro diamonds. Further work on the project is in the planning stage.

Please read on to see why investment in Canadian diamond mining may be of interest. Why are people attracted to diamonds? Diamonds are the most brilliant of all gem stones. When cut and polished by experts they become cherished keepsakes and symbols of marriage and friendships. “Diamonds are forever” (and a “Girl’s Best Friend”). A natural product, diamonds are considered as an asset on a par with gold. Diamonds are the hardest natural substance, have the highest thermal conductivity and are chemically resistant. 80% of diamonds have uses other than for jewelry. They are essential for cutting, drilling, grinding and polishing and for precise cutting (surgical supplies) and engraving. They are used to coat microchips, for windows that cover x-rays and many other commercial uses. Consumer demand for diamonds remains strong. In fact, demand has been higher these past three years than in any previous three-year period. As economies around the world continue to grow and expand, commercial demand grows accordingly. Demand for diamonds will also increase because of the growth of the middle class in countries like China, India, Japan, Singapore and the oil rich Gulf States. 

As with gold – the supply of diamonds is not keeping up with the demand. This is becoming a serious problem. Consider these observations: A primary source of the world’s diamond supply is from areas whose diamonds have become known as "Blood Diamonds" or "Conflict Diamonds". These diamond-producing areas are politically and economically unstable with histories of human rights abuses, civil wars, forced labor, etc. Consumer preferences are trending toward diamond sources from more stable and peaceful areas of the world. The USA is the world's largest consumer of diamonds and currently has NO producing diamond mines. Canada, the number three producer in the world today has five diamond mines. These are expensive to mine as the top three producers are located near the Arctic Circle and the remaining two are in northern Ontario and in northern Quebec. Most will extinguish their diamond assets in the coming few years or be forced to move deep underground with the associated increase in mining costs.

Canada is known around the world for its high standards when dealing with environmental regulations, worker safety and employment conditions. Accountability and transparency are hallmarks of the Canadian diamond mining sector.  Based on current planning, only 15 new diamond mines are expected over the next 40 years. Diamond exploration budgets are significantly reduced. Only 3% of total exploration budgets are for diamonds compared to 46% for gold exploration. New mines must be brought into production. Atacama's two Canadian diamond mining projects appear to be well-positioned to help meet future supply needs for “clean”, reasonable cost diamonds.

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