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

To: Wee M. Wong who wrote (1545)	4/7/1998 9:55:00 AM
From: Lilian Debray	Respond to of 5206

Why, is it time to short Fleck Resources (FLK)? Thanks for the news, Wee!

To: Wee M. Wong who wrote (1545)	4/7/1998 10:16:00 AM
From: BUDDY MOYNIHAN	Read Replies (3) \| Respond to of 5206

AN EXPLANATION OF THE DRILL RESULTS RELEASE...... of course if i make any math errors please feel free to chime in.... :-) stox - 1528 - i caught alot of grief for not being bold in my response to your post 1528..... i will be much bolder today..... see below... - miles - 1541&2 - i will and i will resend tonight. the crux of it is below though.... it is very bullish imho.... - finally the explanation and read along with the news release as we go as all numbers except cost to drill per tonne & tonnes drilled per day are included right there in the news release. i have made none of this up. these are the facts based on the latest news release which is understated by the jv's estimation..... all info is based on the third table of the news release and debeers has blessed these numbers by virtue of o.k.ing the news release (except the two numbers discussed above): hole 150 176 220 carats per tonne 0.11 0.36 0.25 value per carat 75 75 75 ------- -------- ------ value per tonne us$$ 8.25 27 18.75 con to c$ 0.7 0.7 0.7 ------- -------- --------- c$ value per tonne 11.79 38.57 26.79 cost to drill per tonne 15 15 15 ---------- ----------- --------- profit per tonne n/a 23.57 11.79 tonnes per day 60k 60k --------- --------- profit per day 1.414 mill 707k days per year 300 300 ---------- --------- profit per year 424 mill 212 mill krt's share (45%) ($c) 190.8 mill 95.4 mill cameco had the same numbers and they say it's not economic!! i guess their geologist is not too good at the old calculator..... the above assumes they drop out so 45% is our share then.... plus only 20% of the tracers were recovered so the above is ultra conservative. rombouts has stated values will be between $50-100 per carat so i used $75..... now you understand why i believe debeers will buy krt out.... the next set of drill results will really tell the tale i believe as we won't be relying on tracers...... - buddy