Owner
Post by Franko10 ™ on Jan 31, 2005 15:20:05 GMT -5
Kensington Resources Ltd.: Clarification of Joint Venture Exploration and Evaluation Objective
VICTORIA, British Columbia -- Kensington Resources Ltd. (the "Company") (TSX VENTURE:KRT) is releasing clarification of details provided in the news release dated September 23, 2004. This news release contained reference to revision of the Joint Venture Project strategy whereby the central thrust of exploration and evaluation work will be aimed at defining higher-grade zones in a number of bodies with the objective of delineating a collective 80-100 million carats in-ground. This objective is conceptual in nature and there has been insufficient exploration to define a mineral resource on this property and it is uncertain whether further exploration will result in a discovery of a mineral resource on this property.
This figure reflects potential diamond grades and quantities that may encourage further development of an inferred resource in the Fort a la Corne diamond field. Conceptual diamond grades and tonnages have been determined for several higher-grade zones of kimberlite based on limited work completed up to July 2004. These estimates are shown in Table One and the total provides a milestone in the progress made by the Joint Venture towards their new objective. Coupled with this information is the exploration imperative to better delineate potential higher-grade zones previously indicated within additional large kimberlite bodies of the central cluster.
The project strategy has now been revised to focus on the higher grade units within proximally-located priority kimberlite bodies and to consider them in combination. This approach has the advantage of considerably increasing the size of the potential resource and may permit significant economy of scale to be achieved for a large scale mining operation.
As was previously reported in a technical update on the Company's website (www.kensington-resources.com) in support of our news release dated June 28, 2004, Table One shows preliminary results of geological modeling and grade forecasts for kimberlite bodies 140/141, 148 and 122 of the Fort a la Corne Diamond Project in Saskatchewan that were supplied by the De Beers Mineral Resource Management Department ("MRM"). This information was utilized by the Joint Venture partners in planning the current work program for 2004/2005. Confidence limits for the data supplied in Table One are not currently available.
Table One: Kimberlite Units of Economic Interest
---------------------------------------------------------------------
Average
Estimated Estimated Grade
Area of Tonnage greater
Body (Million than
Body (Hectares) Unit of Interest tonnes) 1.5 mm (cpht)
---------------------------------------------------------------------
140/141 250 Coarse Mega-graded Beds 105 9
Breccia Beds 29 16
148 239 Main Pyroclastic Unit 156 7
122 126 Main South Pyroclastic
Unit - upper 45 14
Main South Pyroclastic
Unit - lower 34 12
---------------------------------------------------------------------
Totals 369 10
---------------------------------------------------------------------
The reader is cautioned that the grade and value estimates are conceptual in nature and were determined by MRM using statistical diamond size distributions combining both microdiamonds and macrodiamonds, and application of resulting grade forecasts to valuations of small parcels of macrodiamonds to determine modeled (average) values. Confidence levels for these figures are low and additional testing of macrodiamond content is required to increase confidence levels in the grade forecasts, especially for kimberlite bodies 122 and 148 as their grade forecasts were based primarily on extrapolation of microdiamond size distributions only. The reader also should be aware that insufficient geological control and quantity of sampling has been obtained to permit rigorous application of economic considerations and that there is no certainty that these preliminary assessments will be realized. In short, the figures presented in Table One are utilized as an exploration tool and their primary value is for comparison of diamondiferous kimberlite targets within the focus of the ongoing evaluation program.
Volumes for each of the high interest zones are early estimates derived from computer-generated 3-dimensional models of kimberlite units within areas defined by drillhole intersections. Volume to tonnage estimates were calculated using a specific gravity 2.4 g/cm3 for all kimberlite units. The tonnage estimates require further delineation drilling to better ascertain lateral and vertical extents of the geological units. The surface area of the kimberlites of interest were based on estimated 30 metre thickness cut-offs applied to integrated and modeled geophysical data for the body.
The combined kimberlite units of economic interest within body 140/141 total 134 million tonnes grading an average of 11 carats per hundred tonnes ("cpht"). Grade forecasts for this kimberlite unit and four others were based on a statistical treatment of 3,683 microdiamonds and 1,361 macrodiamonds weighing 155.695 carats; this number of macrodiamonds was used in the determination of average values shown for the specific units, although 105 carats (1071 macrodiamonds) were utilized in the modeling of grade and value for the "Coarse Mega-graded Beds", and 14.3 carats (69 macrodiamonds) were utilized for the breccia beds.
Average grade estimates, rather than ranges of value, were provided by MRM for Kimberlite 140/141 due to the nature of the statistical grade forecasting and modeling of average diamond value. The tonnage estimate was based on kimberlite core descriptions and determinations of unit contacts from fifty NQ, HQ, and PQ coreholes within an area measuring 1400 by 1200 metres. Drillhole spacing is primarily on mixed 100 and 200 metre intervals with total depth of holes ranging from 150 to 450 metres.
Within body 148 the main pyroclastic unit is of economic interest and contains 156 million tonnes of kimberlite at a grade of 7 carats per hundred tonnes. Grade forecasts for this unit and two others were based on the statistical treatment of 2,448 microdiamonds and 70 macrodiamonds weighing 2.369 carats. All macrodiamonds and 1,618 microdiamonds were utilized in modeling the "Main pyroclastic unit" of body 148. The tonnage estimate for this unit was based on kimberlite core descriptions and determinations of unit contacts from eleven HQ coreholes within an area measuring 1000 by 600 metres. Drillhole spacing is primarily on mixed 200 and 400 metre intervals with total depth of holes ranging from 150 to 282 metres.
The combined units of economic interest in body 122 contain 79 million tonnes at a grade of 13 carats per hundred tonnes. Grade forecasts were based on the statistical treatment of 693 microdiamonds and 289 macrodiamonds weighing 23.13 carats. Grade and value modeling for the "Main South Pyroclastic Unit - upper" and "Main South Pyroclastic Unit - lower" units was based on 513 microdiamonds and 269 macrodiamonds (19.885 carats). The tonnage estimate for this unit was based on kimberlite core descriptions and determinations of unit contacts from eight HQ coreholes and three large diameter drillholes within an area measuring 600 by 500 metres. Drillhole spacing is primarily on mixed 200 and 300 metre intervals with total depth of holes ranging from 144 to 279 metres.
Additional large kimberlites in the central cluster include bodies 120, 147, 121, and 221. Estimated grade forecasts and sizes for these bodies were determined during a kimberlite prioritization study conducted by the De Beers Mineral Resource Department ("MINRED") in 1999 and 2000. This study utilized all available diamond grade and quantity information and no additional work has been conducted on these kimberlite bodies since that time. Grade forecasts and potential tonnages were determined in the same way as described above for kimberlite 140/141, 122, and 148, but with less sample data. Results from that study were conceptual in nature and insufficient exploration has been conducted thus far to define a mineral resource on the property. Further work is required to evaluate the potential contribution of diamond from these bodies to the strategic objective of obtaining a low confidence estimate of 80-100 million carats in-ground before reaching a decision-point regarding bulk sampling and pre-feasibility work.
VICTORIA, British Columbia -- Kensington Resources Ltd. (the "Company") (TSX VENTURE:KRT) is releasing clarification of details provided in the news release dated September 23, 2004. This news release contained reference to revision of the Joint Venture Project strategy whereby the central thrust of exploration and evaluation work will be aimed at defining higher-grade zones in a number of bodies with the objective of delineating a collective 80-100 million carats in-ground. This objective is conceptual in nature and there has been insufficient exploration to define a mineral resource on this property and it is uncertain whether further exploration will result in a discovery of a mineral resource on this property.
This figure reflects potential diamond grades and quantities that may encourage further development of an inferred resource in the Fort a la Corne diamond field. Conceptual diamond grades and tonnages have been determined for several higher-grade zones of kimberlite based on limited work completed up to July 2004. These estimates are shown in Table One and the total provides a milestone in the progress made by the Joint Venture towards their new objective. Coupled with this information is the exploration imperative to better delineate potential higher-grade zones previously indicated within additional large kimberlite bodies of the central cluster.
The project strategy has now been revised to focus on the higher grade units within proximally-located priority kimberlite bodies and to consider them in combination. This approach has the advantage of considerably increasing the size of the potential resource and may permit significant economy of scale to be achieved for a large scale mining operation.
As was previously reported in a technical update on the Company's website (www.kensington-resources.com) in support of our news release dated June 28, 2004, Table One shows preliminary results of geological modeling and grade forecasts for kimberlite bodies 140/141, 148 and 122 of the Fort a la Corne Diamond Project in Saskatchewan that were supplied by the De Beers Mineral Resource Management Department ("MRM"). This information was utilized by the Joint Venture partners in planning the current work program for 2004/2005. Confidence limits for the data supplied in Table One are not currently available.
Table One: Kimberlite Units of Economic Interest
---------------------------------------------------------------------
Average
Estimated Estimated Grade
Area of Tonnage greater
Body (Million than
Body (Hectares) Unit of Interest tonnes) 1.5 mm (cpht)
---------------------------------------------------------------------
140/141 250 Coarse Mega-graded Beds 105 9
Breccia Beds 29 16
148 239 Main Pyroclastic Unit 156 7
122 126 Main South Pyroclastic
Unit - upper 45 14
Main South Pyroclastic
Unit - lower 34 12
---------------------------------------------------------------------
Totals 369 10
---------------------------------------------------------------------
The reader is cautioned that the grade and value estimates are conceptual in nature and were determined by MRM using statistical diamond size distributions combining both microdiamonds and macrodiamonds, and application of resulting grade forecasts to valuations of small parcels of macrodiamonds to determine modeled (average) values. Confidence levels for these figures are low and additional testing of macrodiamond content is required to increase confidence levels in the grade forecasts, especially for kimberlite bodies 122 and 148 as their grade forecasts were based primarily on extrapolation of microdiamond size distributions only. The reader also should be aware that insufficient geological control and quantity of sampling has been obtained to permit rigorous application of economic considerations and that there is no certainty that these preliminary assessments will be realized. In short, the figures presented in Table One are utilized as an exploration tool and their primary value is for comparison of diamondiferous kimberlite targets within the focus of the ongoing evaluation program.
Volumes for each of the high interest zones are early estimates derived from computer-generated 3-dimensional models of kimberlite units within areas defined by drillhole intersections. Volume to tonnage estimates were calculated using a specific gravity 2.4 g/cm3 for all kimberlite units. The tonnage estimates require further delineation drilling to better ascertain lateral and vertical extents of the geological units. The surface area of the kimberlites of interest were based on estimated 30 metre thickness cut-offs applied to integrated and modeled geophysical data for the body.
The combined kimberlite units of economic interest within body 140/141 total 134 million tonnes grading an average of 11 carats per hundred tonnes ("cpht"). Grade forecasts for this kimberlite unit and four others were based on a statistical treatment of 3,683 microdiamonds and 1,361 macrodiamonds weighing 155.695 carats; this number of macrodiamonds was used in the determination of average values shown for the specific units, although 105 carats (1071 macrodiamonds) were utilized in the modeling of grade and value for the "Coarse Mega-graded Beds", and 14.3 carats (69 macrodiamonds) were utilized for the breccia beds.
Average grade estimates, rather than ranges of value, were provided by MRM for Kimberlite 140/141 due to the nature of the statistical grade forecasting and modeling of average diamond value. The tonnage estimate was based on kimberlite core descriptions and determinations of unit contacts from fifty NQ, HQ, and PQ coreholes within an area measuring 1400 by 1200 metres. Drillhole spacing is primarily on mixed 100 and 200 metre intervals with total depth of holes ranging from 150 to 450 metres.
Within body 148 the main pyroclastic unit is of economic interest and contains 156 million tonnes of kimberlite at a grade of 7 carats per hundred tonnes. Grade forecasts for this unit and two others were based on the statistical treatment of 2,448 microdiamonds and 70 macrodiamonds weighing 2.369 carats. All macrodiamonds and 1,618 microdiamonds were utilized in modeling the "Main pyroclastic unit" of body 148. The tonnage estimate for this unit was based on kimberlite core descriptions and determinations of unit contacts from eleven HQ coreholes within an area measuring 1000 by 600 metres. Drillhole spacing is primarily on mixed 200 and 400 metre intervals with total depth of holes ranging from 150 to 282 metres.
The combined units of economic interest in body 122 contain 79 million tonnes at a grade of 13 carats per hundred tonnes. Grade forecasts were based on the statistical treatment of 693 microdiamonds and 289 macrodiamonds weighing 23.13 carats. Grade and value modeling for the "Main South Pyroclastic Unit - upper" and "Main South Pyroclastic Unit - lower" units was based on 513 microdiamonds and 269 macrodiamonds (19.885 carats). The tonnage estimate for this unit was based on kimberlite core descriptions and determinations of unit contacts from eight HQ coreholes and three large diameter drillholes within an area measuring 600 by 500 metres. Drillhole spacing is primarily on mixed 200 and 300 metre intervals with total depth of holes ranging from 144 to 279 metres.
Additional large kimberlites in the central cluster include bodies 120, 147, 121, and 221. Estimated grade forecasts and sizes for these bodies were determined during a kimberlite prioritization study conducted by the De Beers Mineral Resource Department ("MINRED") in 1999 and 2000. This study utilized all available diamond grade and quantity information and no additional work has been conducted on these kimberlite bodies since that time. Grade forecasts and potential tonnages were determined in the same way as described above for kimberlite 140/141, 122, and 148, but with less sample data. Results from that study were conceptual in nature and insufficient exploration has been conducted thus far to define a mineral resource on the property. Further work is required to evaluate the potential contribution of diamond from these bodies to the strategic objective of obtaining a low confidence estimate of 80-100 million carats in-ground before reaching a decision-point regarding bulk sampling and pre-feasibility work.
