Looks REAL promising!
Kensington provides Fort a la Corne drilling program
Kensington Resources Ltd KRT
Shares issued 30,977,019 Apr 24 close $0.47
Wed 25 Apr 2001 News Release
Mr. David Stone reports
The Fort a la Corne diamond project is a joint venture among De Beers
Canada Exploration Inc., a wholly owned subsidiary of De Beers (42.3 per
cent), Cameco Corporation (5.4 per cent), UEM Inc., a wholly owned
subsidiary of Cameco (10 per cent) and Kensington Resources Ltd. (42.3 per
cent). The 71 kimberlite bodies of the Fort a la Corne field form one of
the largest diamondiferous clusters in the world.
The joint venture partners report highly favourable modelled diamond values
for the 2000 drilling program. Discussion of macrodiamond results during
the 2001 joint venture annual technical meeting on April 18, 2001, showed
strong support to further test kimberlite 141 and to increase the stone
inventory for body 150, another high-priority target.
At the current stage of exploration in Fort a la Corne, resource evaluation
is increasingly oriented to establishing reasonably confident estimates of
grade and stone values (reflecting a range of stone sizes expected from
production scenarios). Consequently, revenue modelling is based on
factorized forecast grades and the corresponding modelled stone values per
body with a decreased emphasis on smaller stone sizes. Sample results from
the 2000 program confirm that kimberlites 141 and 122 have coarse diamond
size distributions and the potential to contain larger stones.
Table 1 shows a summary of grade and revenue model results. Grade forecasts
per body are based on combined size distributions of microdiamonds and
macrodiamonds. For kimberlite 122, grade was modelled at lower and upper
likely values due to data scatter, while 141 showed moderately well
constrained grade data, but more variation in the modelled revenue values.
Hence, revenue estimates (in dollars per tonne) are given in ranges that
reflect best fit and optimistic models for each kimberlite body; the
variation between the two being a function of limitations inherent in using
relatively small diamond parcels in the calculations. In addition, results
are given for models based on +1.0 millimetre and +1.5 mm bottom size
cutoffs, the latter reflecting more realistic production size recoveries.
De Beers's diamond experts suggest the small difference in grade at
different bottom screen sizes is characteristic of a coarse diamond size
distribution. Modelled values for body 141 ranges from $148 (U.S.) to $179
(U.S.) per carat with corresponding revenue estimates that range from $28
(U.S.) to $33 (U.S.) per tonne of kimberlite processed.
Sample Grade
Body Carats Forecast/
(+1mm) cpht
(+1mm)
122 17.31 8
122 13
141 21.06 19
141 19
Grade Model
Body Forecast/ Value
cpht US$/ct.
(+1.5mm) (+1mm)
122 7.5 133
122 12 136
141 18 148
141 18 173
Body Model Model
Value Revenue
US$/ct. US$/t
(+1.5mm) (+1.0mm)
122 144 11
122 147 18
141 153 28
141 179 33
Body Model
Revenue
US$/t Model
(+1.5mm) Description
122 11 Best fit
122 18 Optimistic
141 28 Best fit
141 32 Optimistic
The joint venture partners are greatly encouraged by these results and a
2001 summer and fall exploration program was recommended that includes
advanced testing of kimberlite 141 primarily, as well as additional
mini-bulk sampling of body 150. A budget of $4.8-million is under
consideration by all three joint venture partners for this work.
Further results yet to be released from the 2000 program include:
microdiamond recovery from 1,194 kilograms by De Beers facilities;
microdiamond recovery from 283 kg by Lakefield Research;
breakage study for 2000 macrodiamonds;
updated De Beers grade forecasts and modelled values based on combination
of all recent and historical microdiamond and macrodiamond data from 141
and 122;
summary of processing audit results conducted by MPH Consultants; and
individual stone valuations by WWW International Diamond Consultants.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
