Shares in Toronto-based BDI Mining have risen more than 30% to 20.25p since its recent AIM launch after a £1.2m placing, handled by broker Hichens Harrison, on consideration of its Cempaka alluvial diamond project in Indonesia. Chairman Paul Loudoun (of investment group Loeb Aron) argues Cempaka could produce 60,000 carats a year at between $175 and $200 a carat, generating cash flow of between £1.7m and £2.25m. Loeb Aron helped with pre-float funding for BDI, which intends to use Cempaka’s cash flow to test for a hard rock source of the alluvials at Bobaris. BDI also has what Loudoun claims could prove a much bigger gold prospect at Woodlark Island in Papua New Guinea, where the company hopes to boost estimated resources from 400,000 oz at two grammes of gold per tonne of ore (with 250,000 oz of that at five grammes a tonne) to as much as two million oz at four grammes a tonne, minable by open pit at a cost of below $200 an ounce, against today’s $419 market price. Drilling is getting under way. RAB Capital has nearly 20% and share swap investors Ocean Resources Capital and Resources Investment Trust have 13.8% and 5% respectively of BDI. With diamonds a strong market and gold possibilities thrown in, the shares may well be volatile, but could repay a strong-nerved punt.