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

To: Lilian Debray who wrote (2478)	8/11/1998 11:54:00 AM
From: Miles	Respond to of 5206

Looks like the markets continue to slide, the VSE is down again, breaking yet another record low! I didn't think it would continue this long, but this is strange market......in the past, the junior market picked up after the bull run was finished with the big boys, I hope we are set for a Sept rally, this is getting to be ridiculous??

To: Lilian Debray who wrote (2478)	8/11/1998 2:28:00 PM
From: Lilian Debray	Read Replies (2) \| Respond to of 5206

To keep the facts straight Samples taken from the FALC kimberlites are too small thus far to be statistically significant - maximum of 40-50 tonnes over bodies of 100 million tonnes or less than 0.000005 %, and only part of those samples have been analyzed. To give an idea of the scale, it would take nearly a century to mine just one of those bodies. Bulk samples of over 100 tonnes are required to provide a definitive valuation for a kimberlite body. However, Luc Rombouts estimates that in all probabilities the distribution of the microdiamonds and indicator minerals, indicates the presence of bigger stones. Up to the 1995 exploration program, over 3000 microdiamonds (under 1mm. in size) and 540 macrodiamonds (over 1 mm.) were found at sites throughout the target area. Of the 71 kimberlites identified on the project, 69 had been drilled by 1997. 55 have diamonds and 34 have macrodiamonds over 1mm. 51 macrodiamonds (over 1mm) were recovered in 1995, 66 in 1996, 31 in 1997. Although they are more conservatively presented than most, those results compare favourably to results from other companies at the same stage. The largest gem quality diamond found graded in at just under one carat (0.985ct). There is no reason to believe that the FALC kimberlites are not mineable. One might as well argue that sites at Argyle (Australia)or in Botswana should never have been mined because they do not conform to South African models or that the NWT can't be mined because they are covered by lakes. BHP must remove the water from the lake, clean it and divert it to a nearby lake before the open pit mine can be built. If Diavik is mined, containment walls in a much larger lake will have to be built around the deposit. Just like 220 at FALC, C29/30 at Candle Lake is covered by 102 m of overburden. Does that also mean then that it is not mineable? As far as results expected from Candle Lake are concerned, it is quite worthwhile and enlightening to phone the companies involved.