Perhaps the Promotion is Starting ... As posted on SH
From Christopher Temple's National Investor
NEW RECOMMENDATION
(August 4, 2000)
NEW RECOMMENDATION -- Kensington Resources (VSE-KRT, OTC-KNSRF);
Recent price -- C$0.42
You'll recall that in the Company Updates section of the June issue, I mentioned this company's intention to soon drill in the Fort a la
Corne area of central Saskatchewan, on property that is actually adjacent to the 50,000 acres owned by Shore Gold (which as I'm
sure you've noticed has perked up in anticipation of its own imminent announcement of assay results, and now stands more than
300% higher than our entry price in February!)
Kensington--a mineral exploration company based in Vancouver, B.C.--presently owns 38% of the diamond property next to Shore's.
Monopros, Ltd.--a wholly-owned subsidiary of DeBeers--also owns 38%, and is the project's drilling manager. Smaller interests are
owned by both Cameco and UEM, Inc.; in the case of Cameco, they are expected to forfeit their interest soon, which will result in
higher percentage ownership for both Kensington and Monopros.
Having spent some time recently further checking out Kensington both directly and through other connections I have in that area, I
have decided to formally add Kensington to my recommended list as a speculative play, based on the following:
1. Kensington's share price ran up to the C$0.75 per share area back in March, after the company announced they had raised the
better part of C$2 million to begin a drilling/sampling project. Since that time, the shares have corrected to around their present
levels; however, with drilling expected to commence on August 15, I feel another rally is on the horizon, not to mention further
possible growth if Kensington's drilling proves successful.
2. The nature of the upcoming program is every bit as much developmentally-oriented as purely exploration. This property has
previously been drilled, and showed sufficient results to warrant further work. Added to this is the encouragement that Kensington
and its partners have received from Shore Gold's success to this point (in fact, I expect that as time goes on good news from either
one of these companies will increasingly benefit BOTH.) I need to note here that in Kensington's case, they are relatively much
further along in the exploration phase of their property than Shore Gold; their upcoming "drilling" is actually going to be a bulk
sampling of two of the major kimberlite pipes (out of SEVENTY-ONE on their property) and will consists of "holes" 24 inches wide.
The typically-sized exploration drill hole is 3 inches.
3. Canada is becoming far more prominent globally in the diamond area. As I explain in considerable detail in the upcoming August
issue, the chief focus of diamond exploration and production in the world is beginning to shift away from Africa and--many predict--will
in not too many years potentially see Canada as the world's largest diamond source. And--in the particular cases of both Kensington
and Shore Gold--their respective results to date suggest that the diamond-bearing kimberlite "pipes" on each of their properties dwarf
those of both the Diamet and Winspear projects farther to the north. EACH OF THOSE PROJECTS HAVE MADE THEIR
INVESTORS WEALTHY. In fact, those who are following the suddenly intriguing goings-on in the diamond area know that DeBeers
recently made a hostile bid for Winspear. In short, not only does it appear that Canada's prominence in the world diamond picture will
be dramatically increasing--but it also appears that the Fort a la Corne area could in the coming months be demonstrated to be the
richest diamond-bearing field in the world!
4. As with Shore Gold, it appears that one of the chief obstacles to any small resource exploration company--MONEY--will not be a
problem going forward, provided each successive drilling brings positive results. Thus--while by definition such a company as
Kensington must be classified as a speculative play--this removes one of the chief risk factors. Investors wishing to buy Kensington
Resources will find it on the Canadian Venture Exchange under the symbol KRT. Its OTC symbol here in the U.S. is KNSRF. As I
have previously advised where Shore Gold and other Canadian companies are concerned, it is best to use a live broker to order for
you, even if you have a discount brokerage account (though in the August issue I’ll talk more about how to best use the OTC symbol
to place a trade if you want to do it on line.)
You can get information on Kensington by calling the company at (604) 681-0377. In addition, you can get a wealth of information
and news on the company by visiting their well-done web site, at www.kensington-resources.com.
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