Ashton cuts new Nunavut kimberlite (April 08, 2005)

Spring drilling by Ashton Mining of Canada (ACA-T) has returned a 160-metre interval of olivine macrocrystic kimberlite from the Ric property in the Coronation Gulf region of Nunavut.

The discovery hole tested the centre of a 75-metre-by-50-metre magnetic anomaly, as part of a spring program of geophysics and drilling. The hole passed through 10 metres of overburden before encountering kimberlite; it was terminated in granite at a depth of 181 metres.

Samples of drill core from the kimberlite, dubbed Ric-97, will be processed for diamonds by caustic dissolution at Ashton’s North Vancouver laboratory; results are expected in the third quarter. Ashton will wait for the results before planning further work.

Meanwhile, drill testing of two other targets turned up a 1.4-metre wide kimberlitic dyke, some 100 metres along the interpreted strike of a system of narrow dykes discovered in May of 2003. Follow up work is not currently planned.

Ashton has budgeted $1.5 million for exploration on its 100%-owned properties in the Coronation Gulf region (including Eokuk, James River, Kim, Ric and Vic) during 2005. This summer, the company plans a campaign of indicator mineral sampling, ground geophysics and follow up drilling, if warranted.

The latest find represents Ashton’s tenth kimberlite in the Coronation Gulf region; six of those proved diamondiferous. The Ric property is also home to the barren Hydra and Caltha kimberlites, and the weakly diamondiferous Perseus kimberlite.

The Ric property is situated 20 km south of the Knife Lake kimberlite project, held by joint-venture partners De Beers Canada Exploration and Rhonda (RDM-V), and 115 km northwest of Tahera Diamond‘s (TAH-T) construction-phase Jericho diamond project.

News of the discovery sent shares in Ashton a nickel, or nearly 4%, higher to $1.32 in afternoon trading on April 8.

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