Kensington explores Fort la Corne

Vancouver — Kensington Resources (KRT-V) has arranged $35 million in financing to explore the Fort la Corne diamond project in central Saskatchewan.

The best-efforts financing, which will be placed through a syndicate led by Loewen Ondaatje McCutcheon, will consist of $5 million in flow-through shares and $30 million in non-flow-through units. (A unit consists of one share and half a warrant).

Mini-bulk sampling has recovered a 10.5- and a 4.1-carat diamond from kimberlite pipe 140-141, and there are indications of a large population of stones.

The large-diameter drilling program tested the upper section of kimberlite breccia beds in the southern, higher-grade portion of pipe 140-141. Recovered stones will be used in grade forecasts and to provide preliminary valuations.

The 225-sq.-km project is owned 42% by Kensington Resources, 42% by operator De Beers Canada, 5.5% by Cameco (CCO-T), and 10% (in the form of a carried interest) by UEM. UEM’s North American assets, in turn, are equally held by Cameco and Cogema.

The project is adjacent to, and northwest of, Shore Gold‘s (SGF-T) Star kimberlite.

The joint venture has budgeted $26 million for exploration and evaluation in 2005.