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Gold/Mining/Energy : Montello Resources -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (2297)	7/30/1998 7:23:00 PM
From: Famularo	Read Replies (2) \| Respond to of 4256

This is from todays Canaccord Daily Report, written by a bright diamond analyst. * Kennecott Canada This week has seen two new option agreements announced between Kennecott Canada ("KCI") (a subsidiary of Rio Tinto PLC) and junior exploration companies. On Monday, the announcement was made that KCI intended to earn into the Legend Property of Montello Resources (MEO-Y) and Redwood Resources (RDW-Y), which consists of some 1.5M acres located 50 km NE of the Ashton et. al. Buffalo Hills Project in Alberta (see July 28 Daily Letter). Under the agreement, KCI will takedown small private placements in the companies, and through expenditures of $30M over seven years or to the point of a production decision, will earn a 60% interest. What's interesting is that while KCI's actual outlays are limited, this sounds like a better earn-in than Aber had ($10M for 60%) in the NWT. High resolution airborne surveying has been done and reviewed by KCI, and it is expected that a number of targets will be drilled beginning late-August/early-September. The location of this property can be found on p. 28 of Canaccord's Feb. 2/98 report Diamond Exploration, Alberta-1998.