Owner
Post by Franko10 ™ on Jan 31, 2005 14:26:00 GMT -5
Kensington Resources Ltd.: Final Report of 2002/2003 Program Identifies Zones with Higher Grade Potential
VICTORIA, British Columbia--(BUSINESS WIRE)--Oct. 20, 2003
Kensington Resources Ltd. (the "Company") reports it has received the final report of the 2002/2003 minibulk program on kimberlite body 140/141 from the operator, De Beers Canada Exploration Inc. Kimberlite 140/141 is one of several high priority bodies identified on the Fort a la Corne Diamond Project that produced several large diamonds including a 10.23 carat stone.
Exploration and evaluation work completed in 2002 and 2003 identified five geological subdivisions in kimberlite body 140/141 including a significantly higher-grade enriched zone. The kimberlite unit with the best diamond recovery in 2002 and best potential in the 140/141 body is the newly tested kimberlite breccia, which was intersected in several core holes in 2002 and has a grade forecast of 15 cpht. This unit requires further delineation drilling to enable estimation of potential tonnage. While significant advances were made in understanding the geological model of body 140/141, further division of the total recovered diamond parcel decreased confidence in the forecasts of grade and revenue for each of the separate units.
In previous years, grade forecasts for Fort a la Corne Grade kimberlites typically were 2-3 times higher than actual sample grades. Two forecasts this year were lower than the actual sample grades. Simply explained, this is the other side of the nugget-effect whereby a greater amount of diamond is recovered from a smaller sample than that which would be representative of the kimberlite unit. Both the breccia and Fine Kimberlite (Vent) would fall under this explanation if the geological divisions and corresponding allocation of diamonds were correctly determined. It is Kensington's opinion that further work is required on the geological model and that allocation of diamond results and grade/revenue forecasts may change as the geological model evolves. The updated modeled grades and revenues for kimberlite body 140/141 are summarized in the table below.
--------------------------------------------------------------------
Actual Sample Grade Forecast
Total Mass Grade in cpht in cpht July 2003
Tested greater than (greater than Revenue in
Geological Unit (tonnes) 1.5 mm) 1.5 mm) $US/carat
--------------------------------------------------------------------
Kimberlite
Breccia 74.0 18.6 15 97
--------------------------------------------------------------------
Mega-graded
bed - Coarse 1,048.9 8.4 12 97
--------------------------------------------------------------------
Mega-graded
bed - Fine 371.7 2.7 7 71
--------------------------------------------------------------------
Mega-graded
bed - Repeated 254.9 5.0 8 75
--------------------------------------------------------------------
Fine Kimberlite
(Vent) 176.5 9.3 5 93
--------------------------------------------------------------------
Speckled
Kimberlite 93.9 4.5 9 67
--------------------------------------------------------------------
"The joint venture partners remain confident about the potential of the Fort a la Corne Project," said David H. Stone, President of Kensington. "Certain of the units identified may have higher diamond potential than others, particularly the mega-graded bed - coarse and the kimberlite breccia. The current program is designed to increase the understanding of the mega-graded bed and the kimberlite breccia which have higher grade and revenue figures, as well as testing other high priority kimberlite bodies."
A more in-depth technical summary of the 2002/2003 program results can be viewed on the Company's website at www.kensington-resources.com. Further results to be released from the 2002/2003 program include the breakage study and separate diamond valuations by WWW International Diamond Consultants Ltd.
A substantial geological investigation of kimberlite body 140/141 is currently in progress involving detailed evaluation of core and diamond results. As previously announced, a program consisting of up to forty-five HQ coreholes (63.55 mm or 2.5 inches diameter) is currently underway on the Fort a la Corne Project. Approximately 25% of this core drilling and sampling program is dedicated to delineation of the higher grade units in 140/141 and the remainder split between several other bodies. Recent determination of the complexity of the 140/141 body indicates that more in-depth investigation of the other high-priority bodies (kimberlites 122, 148, and 150) is warranted. Drilling and microdiamond recovery is expected to be completed by April 2004, the results of which are expected to facilitate decisions concerning large diameter drilling and bulk sampling during the spring and summer of 2004.
Using the expertise of proven management and world-class, experienced technical advisors, Kensington Resources Ltd. is actively involved in confirming the economic potential of this deposit and moving the project forward to a development decision as rapidly as possible. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.25%), De Beers Canada Exploration Inc., a wholly owned subsidiary of De Beers (42.25%), Cameco Corporation (5.5%) and UEM Inc. (carried 10%). The 71+ kimberlite bodies of the Fort a la Corne Field form one of the largest diamondiferous clusters in the world.
ON BEHALF OF THE BOARD OF DIRECTORS OF KENSINGTON RESOURCES LTD.
David H. Stone, President
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's documents filed from time to time with the B.C. Securities Commission and the U.S. Securities and Exchange Commission.
FORM 20-F FILE #0-24980
LISTED IN STANDARD & POOR'S
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
COPYRIGHT 2003 Business Wire
COPYRIGHT 2003 Gale Group
VICTORIA, British Columbia--(BUSINESS WIRE)--Oct. 20, 2003
Kensington Resources Ltd. (the "Company") reports it has received the final report of the 2002/2003 minibulk program on kimberlite body 140/141 from the operator, De Beers Canada Exploration Inc. Kimberlite 140/141 is one of several high priority bodies identified on the Fort a la Corne Diamond Project that produced several large diamonds including a 10.23 carat stone.
Exploration and evaluation work completed in 2002 and 2003 identified five geological subdivisions in kimberlite body 140/141 including a significantly higher-grade enriched zone. The kimberlite unit with the best diamond recovery in 2002 and best potential in the 140/141 body is the newly tested kimberlite breccia, which was intersected in several core holes in 2002 and has a grade forecast of 15 cpht. This unit requires further delineation drilling to enable estimation of potential tonnage. While significant advances were made in understanding the geological model of body 140/141, further division of the total recovered diamond parcel decreased confidence in the forecasts of grade and revenue for each of the separate units.
In previous years, grade forecasts for Fort a la Corne Grade kimberlites typically were 2-3 times higher than actual sample grades. Two forecasts this year were lower than the actual sample grades. Simply explained, this is the other side of the nugget-effect whereby a greater amount of diamond is recovered from a smaller sample than that which would be representative of the kimberlite unit. Both the breccia and Fine Kimberlite (Vent) would fall under this explanation if the geological divisions and corresponding allocation of diamonds were correctly determined. It is Kensington's opinion that further work is required on the geological model and that allocation of diamond results and grade/revenue forecasts may change as the geological model evolves. The updated modeled grades and revenues for kimberlite body 140/141 are summarized in the table below.
--------------------------------------------------------------------
Actual Sample Grade Forecast
Total Mass Grade in cpht in cpht July 2003
Tested greater than (greater than Revenue in
Geological Unit (tonnes) 1.5 mm) 1.5 mm) $US/carat
--------------------------------------------------------------------
Kimberlite
Breccia 74.0 18.6 15 97
--------------------------------------------------------------------
Mega-graded
bed - Coarse 1,048.9 8.4 12 97
--------------------------------------------------------------------
Mega-graded
bed - Fine 371.7 2.7 7 71
--------------------------------------------------------------------
Mega-graded
bed - Repeated 254.9 5.0 8 75
--------------------------------------------------------------------
Fine Kimberlite
(Vent) 176.5 9.3 5 93
--------------------------------------------------------------------
Speckled
Kimberlite 93.9 4.5 9 67
--------------------------------------------------------------------
"The joint venture partners remain confident about the potential of the Fort a la Corne Project," said David H. Stone, President of Kensington. "Certain of the units identified may have higher diamond potential than others, particularly the mega-graded bed - coarse and the kimberlite breccia. The current program is designed to increase the understanding of the mega-graded bed and the kimberlite breccia which have higher grade and revenue figures, as well as testing other high priority kimberlite bodies."
A more in-depth technical summary of the 2002/2003 program results can be viewed on the Company's website at www.kensington-resources.com. Further results to be released from the 2002/2003 program include the breakage study and separate diamond valuations by WWW International Diamond Consultants Ltd.
A substantial geological investigation of kimberlite body 140/141 is currently in progress involving detailed evaluation of core and diamond results. As previously announced, a program consisting of up to forty-five HQ coreholes (63.55 mm or 2.5 inches diameter) is currently underway on the Fort a la Corne Project. Approximately 25% of this core drilling and sampling program is dedicated to delineation of the higher grade units in 140/141 and the remainder split between several other bodies. Recent determination of the complexity of the 140/141 body indicates that more in-depth investigation of the other high-priority bodies (kimberlites 122, 148, and 150) is warranted. Drilling and microdiamond recovery is expected to be completed by April 2004, the results of which are expected to facilitate decisions concerning large diameter drilling and bulk sampling during the spring and summer of 2004.
Using the expertise of proven management and world-class, experienced technical advisors, Kensington Resources Ltd. is actively involved in confirming the economic potential of this deposit and moving the project forward to a development decision as rapidly as possible. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.25%), De Beers Canada Exploration Inc., a wholly owned subsidiary of De Beers (42.25%), Cameco Corporation (5.5%) and UEM Inc. (carried 10%). The 71+ kimberlite bodies of the Fort a la Corne Field form one of the largest diamondiferous clusters in the world.
ON BEHALF OF THE BOARD OF DIRECTORS OF KENSINGTON RESOURCES LTD.
David H. Stone, President
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's documents filed from time to time with the B.C. Securities Commission and the U.S. Securities and Exchange Commission.
FORM 20-F FILE #0-24980
LISTED IN STANDARD & POOR'S
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
COPYRIGHT 2003 Business Wire
COPYRIGHT 2003 Gale Group
