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

To: David Rowe who wrote (2725)	9/17/1998 11:18:00 AM
From: average joe	Read Replies (1) \| Respond to of 5206

Rowe, you are a snake-oil salesmans best friend. The only thing clear about clearwater is that there is nothing there. And congratulations, even if there were something there KRT has a 100% of it. What is left to negotiate? Don't the fish and the elk like the deal? There was a brief flurry of activity for Nickel when Diamond Fields was run up the flag pole. In case you have not noticed that is over to. Clearwater is deader than FALC. O&o - aj

To: David Rowe who wrote (2725)	9/17/1998 4:00:00 PM
From: Grant Baker	Respond to of 5206

Hi David. There is no question that INCO is playing hard ball with the Newfoundland government, and I agree with you that there is still much work to be done to prove up the VB deposit. Even in the depressed metals markets that we are currently experiencing, the Majors usually still have exploration money to spend on good targets. Because of the length of time that it take to develop a property, the (usually) much shorter swings in the resource cycles, and the (frequently) high rate at which they deplete their existing resources, Majors have to be constantly looking for and evaluating new metal deposits. They generally cannot afford to sit back and wait out the slumping metal markets because the delays that this would impose on the development process becomes an unknown factor, and big business does not like to deal with unknowns. Most Majors will continue to spend money on exploration, even in depressed metal market conditions, because even though they are spending money (maybe at slightly reduced rates than if the economy or markets were in better shape) they are usually still working within their strategic objectives. Continued exploration becomes a known risk that they can quantify, accommodate, and work with. All of the above is a round-about way to say that CAMECO taking over the other half of Clearwater could actually be to KRT's advantage. So long as CAMECO (or any other Major) wants to see what the Clearwater property has to offer, KRT still has a viable project there. Now if, as Buddy says, KRT is trying to renegotiate the Clearwater deal, KRT may have to give up a portion of the play to let CAMCO become the operator, etc. However, given that CAMECO has much deeper pockets than KRT, they can obviously afford to take on greater risk, and they should be adequately compensated for that risk. As a shareholder in KRT I would say to CAMECO, go ahead, take a bigger slice of the pie, just make sure that there is something left for us in the end. A smaller piece of pie for KRT is still preferable to no pie at all! There are other Majors and Jrs out there cutting deals on base metal properties every day. I understand the Falconbridge is apparently talking to Darnley Bay Resouces right now about a JV on a huge VB style gravity anommally (sp?) located near Paulatuk on the arctic coast. The high cost of exploration up there means there has to be a good potential for higher than normal rates of return. There is no deal yet that I am aware of, but they are apparently still talking of proceeding with the development of that particular property. All of which leads us to the Question: Does CAMECO have any interest in Clearwater, or did they just get this property in with some others that they do have an interest in? If they don't have an interest in this property, will they flip it to another Major who does? For anyone to state that at this point that Clearwater is dead is utter nonsense. That person obviously does not know what they are talking about. Their primary intent is to panic and scare shareholders into dumping shares that they will try to pick up a bargan basement prices. The Clearwater project remains alive so long as KRT can either pay its share of the costs, or they can get some other company to pay a greater portion of the required exploration costs. As long as the leases are in good standing KRT shareholders should not begin to panic just yet. Clearwater is a definitely a small part of the KRT puzzle. What percentage of the current share price should be attributed to Clearwater is something I can't evaluate because I don't have enough information. However, I am not prepared just yet to have KRT give this property away, as some other critics seem to suggest we do. That would only be to someone else's benefit, and the individuals screaming the loudest for KRT to take that approach are probably the ones who would stand to benefit from such a transaction. Enough said. Regards. Grant.