The BarkerLetter

October 17, 2007

Greetings investors!

Matt wants to know if I follow companies on London’s AIM Exchange.

Yes I do!

I started doing that a few years ago when some of the boys at Mineras Andes Ltd (MAI.TSX) got involved in a start-up called Franconia Minerals, which had a base metals play in the Southwestern U.S. with Teck.  Franconia listed on AIM first, raised some capital, then came over here to the TSX venture exchange.

So the short answer is, yes I’m interested in those which are ultimately destined to list on a Canadian or U.S. exchange. It certainly worked with with Franconia, which had a nice run from $0.40 Cdn to almost $2 per share.

Matt is keen on AIM listed DiamondTech Inc. … ‘which  is involved in a diamond sorting technology known as Laser Recovery, and going into mine development joint ventures as a means of commercialization’.  He says the stock has crashed over the last couple of months - from 13 to 8 pounds sterling - and wonders if I have any knowledge of the company given my ’bullish position’ on diamond shares.

Frankly I had never thought about the ’supply and services’ side of the diamond industry.  I mean, you could always buy DeBeers I suppose, if you can afford it. Actually, truth be told, I was just conversing with someone the other day about how laser technology should be used to improve the recover of gems from ore and or aluvial gravels.

That’s what DiamondTech’s technology does.  Its Laser Recovery Unit technology is used to process diamond-bearing gravel, also called ’run of mine’. The process is reportedly faster, more accurate,  and more cost-effective than currently available sorting technologies.

DiamondTech is thinly traded, it did 50,000 shares today and closed under 9 pounds sterling.  The company’s goal is to commercialise the LRU technology, and it’s already entered into a revenue sharing agreement with some mineral rights holders in South Africa.

If I were looking to buy DiamondTech my due diligence would include looking over their shareholders and especially the companies they plan to joint venture with.  Interesting deal though. Drop me a line if you get the inside track on this LRU technology.

Be careful out there.

Kb