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

To: zoli bognar who wrote (1644)	4/22/1998 1:18:00 PM
From: joe minten	Read Replies (1) \| Respond to of 5206

I looks like exposure is picking up. I got this from DEADLOCK this AM. I only wish that KRT would show up more often in these reports, and comparisons: joe SHORE GOLD <http://www.shoregold.com/> _____________________________________________________________________________ Morning Update on Shore Gold (SGF:ASE $0.70) Further to our Trade Alert put out last night on Shore's diamond recovery results in the Province of Saskatchewan we were asked to put out a brief comparison to Ashton's results last spring. The trading was extremely strong around $0.80 for the first hour this morning but it appears the pro-traders are tossing it around a bit as volume is over 400,000 but price has fallen back a bit to 0.70. It is difficult to make market cap. comparisons to Ashton Mining of Australia as obviously they have much more credibility than some smaller mining company from Saskatchewan. However, in our opinion the initial results are no less impressive. Keep in mind diamond plays take significant time to develop and are extremely volatile but at any given time in their life things can change very dramatically. We feel Shore has an excellent chance this year of possibly proving up the economic diamond theory in the Province as initial results are extremely encouraging and infrastructure in the region is excellent. On April 25, 1997 Ashton Mining announced the following results from the Buffalo Hills Region of Alberta (next door to Saskatchewan). Within 3 weeks time the market cap. of Ashton had risen over $150 million to $192 million on the following: Kimberlites K2,K4 reported insignificant results but confirmed the presence of G10 pyrope garnets and abundant chromites (favourable conditions for diamonds). Kimberlite K14 reported from 152kg samples 139 micro diamonds and 11 macros (no grading at this stage). On May 16 they reported from 3 more kimberlites a total of 266kg hosting 266 micro diamonds and 15 macros. TOTAL ASHTON: WEIGHT MICROS MACROS 418kg 405 26 TOTAL SHORE: 983kg 682 67 The Saskatchewan Research Council Laboratory which is a highly respected gov't lab did the work on the drill core. While they cannot grade them, they reported that 91% were clear with no inclusions. Keep in mind t hat the core was only 3.3" in diameter and recovered this large count in a 45m intersection which could be indicative of a very large (and rich) main zone. Considerable work will be required which will include further financing for a bulk tonnage sample (possibly an underground sample as well). But it appears as though Shore Gold may make an interesting play in an often times rather exciting (but highly volatile) industry. If you have thick enough skin the returns can often be enormous but due to the shear nature of these resource plays, they tend to attract a lot of "short" attention and day traders. It is important to understand that it is difficult to make market cap. comparisons to the likes of Ashton but right now this is the only close comparable we have as they are at a similar stage Ashton was last Spring. The current market cap. of Shore is around $9 million - following Ashton's preliminary announcement in April of 1997 the market cap rose $150 million. This is not to say the same thing is going to happen to Shore but it is possible that in the months ahead with further success, the market cap. could rise dramatically as the area and the company gain the respect of the investment community. A risk still, none-the-less. Ashton has been working Alberta for over 18mths now and still the jury is out. Their current market cap is approx. $96 million. The region was written up this past week in the Globe & Mail as a possible strong resource play in 1998 and the involvement of DeBeers with junior Troymin helped re-affirm this. In our analysis, the results from Shore yesterday are no less impressive but because they are not located in the current "hot spot" have not drawn the exposure yet. Personally I would rather take my chances in Canada than in the Congo !