Update on drilling programme at Kuhmo

This is less a near-term diamond price story than a probability upgrade on a very small asset with binary value. Intercepts consistent with proximity to an intrusive complex matter because the market is usually forced to re-rate not on grade, but on the likelihood that a coherent source body exists at all; in micro-cap exploration, that can move the equity far more than commodity beta. The second-order effect is that financing risk may improve if management can translate this into a tighter, higher-conviction drill plan before the next raise.

The key dynamic is dilution versus optionality. If the company is able to convert this into a follow-up program with a smaller, better-aimed footprint, the “probability of discovery” can increase enough to attract speculative capital even in a weak risk window; if not, the market will likely treat this as another technical hit with limited economic significance. The sharpest re-rating typically happens over the next 1-2 catalysts, not on the initial assay headlines.

Contrarianly, the market may be overestimating how quickly “positive geology” becomes “economic deposit.” In frontier hard-rock exploration, the gap between geologic encouragement and mineable tonnage can be years and multiple failed step-outs wide, so any early rally is vulnerable if the next holes do not vector cleanly. The real tell will be whether management can demonstrate consistent intrusive architecture across holes, because scattered breccia without scale is usually a funding story, not a development story.