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

To: Richard Cushnie who wrote (1459)	3/30/1998 8:20:00 PM
From: Ed Pakstas	Read Replies (2) \| Respond to of 5206

Additional results from 1997 Fort a la Corne drilling program Kensington Resources Ltd KRT Shares issued 23,966,435 Mar 30 close $0.45 Mon 30 Mar 98 News Release Mr David Stone reports The company has received the following results for 1997 diamond exploration at the Fort a la Corne project, 65km east of Prince Albert, Saskatchewan. To date, 34 of the 69 kimberlite bodies tested by drilling at the project contain macrodiamonds. The 1997 program consisted of two conventional rotary drill holes as well as three reverse circulation airblast drill holes which were underreamed totalling 1,153.7m. A small diameter rotary hole was drilled into each of the previously untested kimberlite targets 605 and 612. The large diameter RCA/UR drill holes were drilled to further evaluate kimberlite bodies 150, 176 and 220 where encouraging diamond results were obtained from previous holes. The RCA/UR drill program used procedures and equipment considered to be optimal for recovery of diamonds from the borehole and was audited by a tracer recovery program using diamond simulants and synthetic diamonds. Kimberlite material was processed for microdiamonds at the Saskatchewan Research Council and Kimberley Acid (KAL) laboratories. The corresponding mini-bulk samples were processed and evaluated at the DeBeers macrodiamond recovery facilities in South Africa. Microdiamond recovery results for the samples composited from holes 150-05, 176-02, 220-02, 605-01 and 612-01 drilled during 1997 were obtained for analysis by the SRC and subsequently reported in Stockwatch September 5 1997. In addition, results for holes 150-05, 176-02 and 220-02 have been augmented by further microdiamond analyses determined by KAL. The microdiamond results from the two laboratories are combined as follows: Kimberlite Weight of Diamonds Total* sample treated recovered diamonds thickness sample per 10kg (m) (kg) No. Cts sample No. Cts ---------------------------------------- Hole 150-05 158.5 82.0 16 .00163 2 .00020 Hole 176-02 170.5 77.4 22 .00198 3 .00026 Hole 220-02 78.0 78.4 159 .03957 20 .00505 * Includes microdiamonds and macrodiamonds Minibulk samples were collected from the five holes drilled during 1997. A total of 72.9 dry tonnes of the greater than 0.85mm kimberlite fraction, representing a theoretical mass of 129.9 tonnes excavated from these drill holes was processed for macrodiamond content at DeBeers' diamond recovery facilities in South Africa. In total, 31 macrodiamonds (greater than 1.0mm in one dimension) collectively weighing 2.52 carats were recovered from kimberlite bodies 150, 176 and 220. No macrodiamonds were recovered from the minibulk samples obtained from kimberlite bodies 605 and 6512. Twenty stones were recovered from kimberlite body 220, which accounts for 1.27 carats of the total and includes a single 0.7 carat white macrodiamond with abundant inclusions. Macrodimonds recovered for each of the three drill holes are as follows: Hole 150-05 Kimberlite sample interval - 159.5m Theoretical mass tested - 59.70 tonnes No. of stones - 3 Wt of stones - 0.475 carats Avg No. stones (per 100 tonnes) - 5.1 Avg grade (cpht) - 0.8 Hole 176-02 Kimberlite sample interval - 162.5 Theoretical mass tested - 42.67 tonnes No. of stones - 8 Wt of stones - 0.775 carats Avg No. stones (per 100 tonnes) - 32.4 Avg grade (cpht) - 3.1 Hole 220-02 Kimberlite sample interval - 84.0 Theoretical mass tested - 27.53 tonnes No. of stones - 20 Wt of stones - 1.270 carats Avg No. stones (per 100 tonnes) - 75.3 Avg grade (cpht) - 4.6 The average macrodiamond grades calculated for the minibulk samples obtained from these three holes may be minimum estimates, particularly in view of the extrapolated macrodiamond grades shown below. This potential understatement of the grade is mainly attributed to insufficient sampling and possibly some diamond losses in the drilling system as indicated by the results for the tracer program below: Summary of grade estimates for commercial-sized diamonds based on extrapolation of microdiamond size distribution and macrodiamonds recovered from minibulk samples for kimberlite bodies drilled during 1997: Hole No. 150 (112 ha), has an estimated mass of 336,000,000 tonnes Hole No. 176 (26 ha), has an estimated mass of 45,000,000 tonnes Hole No. 220 (24 ha), has an estimated mass of 87,000,000 tonnes Microdiamond Samples Macrodiamonds Extrapolated Recovered from Macrodiamond Grade Minibulk Samples (cpht)2 ----------------------------------------- Total Higher No. of Grade Body Grade Zones Stones (cpht) Hole No. 150 11 15 36 4.9 Hole No. 176 36 50 17 3.4 Hole No. 220 25 n/a 24 6.6 A comprehensive tracer program designed to simulate the recovery of diamonds at the drill site was implemented to assist with the evaluation of the three RCA/UR holes drilled during 1997. Diamond simulants and synthetic diamonds were introduced into the drilling system and subsequently recovered along with the kimberlite cuttings. Although qualitative in nature, the results indicate inconsistent and lower than expected recovery of the various tracers, divergent behaviour between the various tracers and natural diamonds, along with areas where the recovery of natural diamonds may be at some risk. It should be noted, however, that the tracers have not behaved in a manner entirely analogous to natural diamonds. This is due to the nature of the tracers as well as their means of introduction into and recovery from the drilling system. In view of these results, future sampling programs will include more indepth tracer studies. Moreover, the RCA sample recovery procedures will continue to be reviewed on a continuing basis with the prime objective of maximizing the diamond recovery. The impact on the value of diamonds associated with fragmentation of stones during the drilling and sample collection process will also be assessed. Dr Luc Rombouts valued 31 macrodiamonds recovered from the minibulk samples collected in 1997 and incorporated these values into the historical dataset for all the macrodiamonds recovered at Fort a la Corne which was also updated to the end of 1997. Values for the 1997 stones range up to US$150 per carat with the best gem recovered from kimberlite body 150. Global average value for all macrodiamonds recovered is US$32 per carat based on 720 stones weighing a total of 37.3 carats and using the end of 1997 prices. Gem stones comprise 95.3% of the total stone value to date. Fourteen kimberlite bodies have yielded more than 15 stones each. Average carat prices for the individual kimberlite bodies vary from US$3 to US$89 per carat assuming end of 1997 prices. The highest average carat price of US$89 was from kimberlite body 150 and it is based on 36 stones. In Dr Rombouts' opinion, it is reasonable to expect that the average carat price for many of the Fort a la Corne kimberlites could be in the US$50 to US$100 range, particularly since his statistical studies of the microdiamond analytical data indicate that several kimberlite bodies could have the potential to contain larger and better quality stones than those generally recovered from the minibulk samples to date. The entire inventory of macrodiamonds recovered at Fort a la Corne, including the 1997 stones is 68.8% gems, 20.5% near gems, and 10.7% industrial grade stones. The company is encouraged by these results and plans to participate in a follow up drilling program during 1998. Discussions on the 1998 program are in progress. In general, this significant program comprised of several large diameter RCA drill holes will be designed to further evaluate a selected number of diamondiferous kimberlite bodies which are considered to often contain more than 100 million tonnes of kimberlite each and have the greatest economic potential on the basis of the current data. The Fort a la Corne diamond project is a joint venture with Kensington Resources, Uranerz Exploration, Cameco Corporation and Monopros Limited. As at December 31 1997, each of Cameco, Monopros and Kensington have a 30% interest and Uranerz has a 10% carried interest. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

To: Richard Cushnie who wrote (1459)	3/30/1998 8:30:00 PM
From: maxed	Read Replies (1) \| Respond to of 5206

Here it is. rces Ltd - Additional results from 1997 Fort a la Corne drilling program Kensington Resources Ltd KRT Shares issued 23966435 1998-03-30 close $0.45 Monday Mar 30 1998 Mr David Stone reports The company has received the following results for 1997 diamond exploration at the Fort a la Corne project, 65km east of Prince Albert, Saskatchewan. To date, 34 of the 69 kimberlite bodies tested by drilling at the project contain macrodiamonds. The 1997 program consisted of two conventional rotary drill holes as well as three reverse circulation airblast drill holes which were underreamed totalling 1,153.7m. A small diameter rotary hole was drilled into each of the previously untested kimberlite targets 605 and 612. The large diameter RCA/UR drill holes were drilled to further evaluate kimberlite bodies 150, 176 and 220 where encouraging diamond results were obtained from previous holes. The RCA/UR drill program used procedures and equipment considered to be optimal for recovery of diamonds from the borehole and was audited by a tracer recovery program using diamond simulants and synthetic diamonds. Kimberlite material was processed for microdiamonds at the Saskatchewan Research Council and Kimberley Acid (KAL) laboratories. The corresponding mini-bulk samples were processed and evaluated at the DeBeers macrodiamond recovery facilities in South Africa. Microdiamond recovery results for the samples composited from holes 150-05, 176-02, 220-02, 605-01 and 612-01 drilled during 1997 were obtained for analysis by the SRC and subsequently reported in Stockwatch September 5 1997. In addition, results for holes 150-05, 176-02 and 220-02 have been augmented by further microdiamond analyses determined by KAL. The microdiamond results from the two laboratories are combined as follows: Kimberlite Weight of Diamonds Total* sample treated recovered diamonds thickness sample per 10kg (m) (kg) No. Cts sample No. Cts ---------------------------------------- Hole 150-05 158.5 82.0 16 .00163 2 .00020 Hole 176-02 170.5 77.4 22 .00198 3 .00026 Hole 220-02 78.0 78.4 159 .03957 20 .00505 * Includes microdiamonds and macrodiamonds Minibulk samples were collected from the five holes drilled during 1997. A total of 72.9 dry tonnes of the greater than 0.85mm kimberlite fraction, representing a theoretical mass of 129.9 tonnes excavated from these drill holes was processed for macrodiamond content at DeBeers' diamond recovery facilities in South Africa. In total, 31 macrodiamonds (greater than 1.0mm in one dimension) collectively weighing 2.52 carats were recovered from kimberlite bodies 150, 176 and 220. No macrodiamonds were recovered from the minibulk samples obtained from kimberlite bodies 605 and 6512. Twenty stones were recovered from kimberlite body 220, which accounts for 1.27 carats of the total and includes a single 0.7 carat white macrodiamond with abundant inclusions. Macrodimonds recovered for each of the three drill holes are as follows: Hole 150-05 Kimberlite sample interval - 159.5m Theoretical mass tested - 59.70 tonnes No. of stones - 3 Wt of stones - 0.475 carats Avg No. stones (per 100 tonnes) - 5.1 Avg grade (cpht) - 0.8 Hole 176-02 Kimberlite sample interval - 162.5 Theoretical mass tested - 42.67 tonnes No. of stones - 8 Wt of stones - 0.775 carats Avg No. stones (per 100 tonnes) - 32.4 Avg grade (cpht) - 3.1 Hole 220-02 Kimberlite sample interval - 84.0 Theoretical mass tested - 27.53 tonnes No. of stones - 20 Wt of stones - 1.270 carats Avg No. stones (per 100 tonnes) - 75.3 Avg grade (cpht) - 4.6 The average macrodiamond grades calculated for the minibulk samples obtained from these three holes may be minimum estimates, particularly in view of the extrapolated macrodiamond grades shown below. This potential understatement of the grade is mainly attributed to insufficient sampling and possibly some diamond losses in the drilling system as indicated by the results for the tracer program below: Summary of grade estimates for commercial-sized diamonds based on extrapolation of microdiamond size distribution and macrodiamonds recovered from minibulk samples for kimberlite bodies drilled during 1997: Hole No. 150 (112 ha), has an estimated mass of 336,000,000 tonnes Hole No. 176 (26 ha), has an estimated mass of 45,000,000 tonnes Hole No. 220 (24 ha), has an estimated mass of 87,000,000 tonnes Microdiamond Samples Macrodiamonds Extrapolated Recovered from Macrodiamond Grade Minibulk Samples (cpht)2 ----------------------------------------- Total Higher No. of Grade Body Grade Zones Stones (cpht) Hole No. 150 11 15 36 4.9 Hole No. 176 36 50 17 3.4 Hole No. 220 25 n/a 24 6.6 A comprehensive tracer program designed to simulate the recovery of diamonds at the drill site was implemented to assist with the evaluation of the three RCA/UR holes drilled during 1997. Diamond simulants and synthetic diamonds were introduced into the drilling system and subsequently recovered along with the kimberlite cuttings. Although qualitative in nature, the results indicate inconsistent and lower than expected recovery of the various tracers, divergent behaviour between the various tracers and natural diamonds, along with areas where the recovery of natural diamonds may be at some risk. It should be noted, however, that the tracers have not behaved in a manner entirely analogous to natural diamonds. This is due to the nature of the tracers as well as their means of introduction into and recovery from the drilling system. In view of these results, future sampling programs will include more indepth tracer studies. Moreover, the RCA sample recovery procedures will continue to be reviewed on a continuing basis with the prime objective of maximizing the diamond recovery. The impact on the value of diamonds associated with fragmentation of stones during the drilling and sample collection process will also be assessed. Dr Luc Rombouts valued 31 macrodiamonds recovered from the minibulk samples collected in 1997 and incorporated these values into the historical dataset for all the macrodiamonds recovered at Fort a la Corne which was also updated to the end of 1997. Values for the 1997 stones range up to US$150 per carat with the best gem recovered from kimberlite body 150. Global average value for all macrodiamonds recovered is US$32 per carat based on 720 stones weighing a total of 37.3 carats and using the end of 1997 prices. Gem stones comprise 95.3% of the total stone value to date. Fourteen kimberlite bodies have yielded more than 15 stones each. Average carat prices for the individual kimberlite bodies vary from US$3 to US$89 per carat assuming end of 1997 prices. The highest average carat price of US$89 was from kimberlite body 150 and it is based on 36 stones. In Dr Rombouts' opinion, it is reasonable to expect that the average carat price for many of the Fort a la Corne kimberlites could be in the US$50 to US$100 range, particularly since his statistical studies of the microdiamond analytical data indicate that several kimberlite bodies could have the potential to contain larger and better quality stones than those generally recovered from the minibulk samples to date. The entire inventory of macrodiamonds recovered at Fort a la Corne, including the 1997 stones is 68.8% gems, 20.5% near gems, and 10.7% industrial grade stones. The company is encouraged by these results and plans to participate in a follow up drilling program during 1998. Discussions on the 1998 program are in progress. In general, this significant program comprised of several large diameter RCA drill holes will be designed to further evaluate a selected number of diamondiferous kimberlite bodies which are considered to often contain more than 100 million tonnes of kimberlite each and have the greatest economic potential on the basis of the current data. The Fort a la Corne diamond project is a joint venture with Kensington Resources, Uranerz Exploration, Cameco Corporation and Monopros Limited. As at December 31 1997, each of Cameco, Monopros and Kensington have a 30% interest and Uranerz has a 10% carried interest.