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Gold/Mining/Energy : Kensington Resources Ltd. (V.KRT) * Diamond in the rough! -- Ignore unavailable to you. Want to Upgrade?

To: Sieg who wrote (5050)	3/13/2001 12:11:00 PM
From: Ross Mickey	Read Replies (1) \| Respond to of 5206

Doesn't look bad to me... Kensington receives Fort a la Corne results Kensington Resources Ltd KRT Shares issued 30,977,019 Mar 12 close $0.63 Tue 13 Mar 2001 News Release Mr. David Stone reports Kensington Resources reported very positive macrodiamond recovery results from the 2000 drilling exploration program conducted at the Fort a la Corne project in Saskatchewan with joint venture partners De Beers and Cameco. A minibulk sample totalling 580 tonnes of kimberlite from two separate bodies was processed for recovery of macrodiamonds greater than 1.0 millimetre in size. The three-stage recovery process produced 487 macrodiamonds having a combined weight of 38.37 carats. This total includes two stones larger than one carat (1.085 and 1.535 carats) from body 141 and an additional 12 stones ranging in size from 0.5 to 0.855 carats from bodies 122 and 141. These results confirm the joint venture's predictions for larger macrodiamonds in these two bodies and significantly enhance the diamond potential of the Fort a la Corne property. Kensington is pleased to have exceeded its expectations for 2000 and with the full support of the joint venture partners, it is looking forward to moving the project forward as quickly as possible. The 69 kimberlite bodies of the Fort a la Corne field is one of the largest diamondiferous clusters in the world. Kimberlite bodies 141 and 122 are estimated to contain in excess of 395 and 540 million tonnes of kimberlite, respectively. Macrodiamond results from 2000 drilling program A total of 212 macrodiamonds having a combined weight of 17.305 carats was recovered from 328.3 tonnes of kimberlite excavated by three 24-inch diameter, air-assisted, reverse-circulation mud drillholes targeted on body 122. Borehole sample diamond grades for body 122 ranged from 3.3 carats per hundred tonnes (122-09) to 9.7 cpht (122-11) and averaged 5.3 cpht. Six diamonds larger than 0.5 carats each were recovered from body 122 including four stones larger than 0.7 carats. The fourth largest stone of the 2000 program, weighing 0.760 carats, was recovered from drillhole 122-11. The highest individual (or interval) sample grade was 24.7 cpht from the lower part of drillhole 122-09. Better recoveries were obtained from body 141. A total of 278 macrodiamonds having a combined weight of 21.175 carats were recovered from 251.8 tonnes of excavated kimberlite from two drillholes. Borehole diamond sample grades were 9.3 cpht and 7.2 cpht from 141-04 and 141-05, respectively, and combined give an average grade of 8.4 cpht. Eight stones greater than 0.5 carats were recovered including one stone weighing 0.855 carats and two stones larger than 1.0 carat (1.085 and 1.535 carats), all three of which were from drillhole 141-04. De Beers size frequency modeling suggests larger stones exist in both kimberlites. The best interval sample grade was 31.5 cpht from 233.6 to 244.9 metres depth in drillhole 141-04. Stone recoveries are shown in the table. Fourteen smaller stones (totalling 0.875 carats) of the 487 total macrodiamonds were recovered from non-magnetic x-ray tailings by hand sorting. This represents only 3-per-cent low luminescent stones compared to greater than 50-per-cent recovered during the 1999 program on bodies 147 and 220. Drilling program 2000 Minibulk diamond recovery results Minibulk Sample Drill mass No. of carats hole (kg) stones Carats cpht) 122-09 129.153 63 4.235 3.3 122-10 118.092 57 5.105 4.3 122-11 81.078 92 7.970 9.7 ------------- ----- --------- ----- Subtotal 122 328.324 212 17.310 5.3 141-04 138.590 169 12.840 9.3 141-05 113.260 106 8.220 7.2 ------------- ----- --------- ----- Subtotal 141 251.850 275 21.060 8.4 ======= === ====== === Total 2000 580.175 487 38.370 - De Beers updated grade forecasts De Beers have used macrodiamond recoveries from the 2000 drilling to refine kimberlite grade forecasts for kimberlites 122 and 141. The 2000 macrodiamond recoveries from body 122 have improved the grade forecast (1.0 mm lower cutoff) from 9 cpht to 10-16 cpht. Significantly, the grade forecast (1.0 mm lower cutoff) for body 141 has increased from 14 cpht to 20 cpht. The joint venture partners anticipate macrodiamond sample grades to approach those of the grade forecasts as the total mass of tested kimberlite increases. Furthermore, the partners have emphasized that the 2000 drilling program was a two-part exercise to firstly confirm the nature of the diamond size frequency of the kimberlites tested, and to recover enough of these stones to allow preliminary revenue modelling to occur. The first aim of the exercise has been completed successfully and the diamond recoveries indicate a relatively coarse diamond population compared to other kimberlites in the Fort a la Corne field. Diamond value will be an important factor in determining the potential of these two kimberlites. Remaining results to be released Additional results, including valuation and macrodiamond breakage, as well as diamond results from representative samples submitted to Lakefield and De Beers for caustic dissolution will be released as they are received. This information will be evaluated leading up to a joint venture meeting to be held in April 2001. The joint venture meeting will be dedicated to formulating the 2001 exploration program. The Fort a la Corne diamond project is a joint venture among DeBeers Canada Exploration Inc., a wholly owned subsidiary of DeBeers, 42.11 per cent; Cameco Corporation, 5.78 per cent; UEM Inc., a wholly owned subsidiary of Cameco, 10 per cent, and Kensington Resources Ltd., 42.1 per cent. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com