Ashton increases holdings in Buffalo Hills

Encouraged by its recent discovery of 11 kimberlite bodies in the Buffalo Hills area of north-central Alberta, Ashton Mining of Canada (ACA-T) has acquired a position in an additional 21-Million-Acre land package from partner Pure Gold Resources (PUG-T).

Ownership of the recently staked ground will be held 40% by Cayo Resources (CAYO-C), 25.5% by Ashton, 25.5% by an unnamed Alberta-based energy firm, and 9% by Pure Gold.

Ashton says the acquisition provides it with a larger area in which to carry out reconnaissance surveys. The company’s landholdings in the Buffalo Hills area now stand at 26.8 million acres.

In October 1996, Ashton and partner Pure Gold entered an option agreement with the unnamed energy company. By funding an initial $500,000 on exploration over a 1.4-Million-Acre land position, Pure Gold qualifies for a 15% interest. Ashton can earn a 42.5% interest by financing the next $5 million in exploration costs. The remainder will be held by the unnamed company.

The joint venture increased its holdings to 5.8 million acres by staking additional lands known as Loon Lake, Birch Mountain, Rabbit Lake and Muddy River.

Any expenditures on these later additions will be shared proportionately from the outset.

In November 1996, geophysical surveys were flown over limited portions of the original property in an effort to define more accurately the pipe-like anomalies. Ashton followed up this program with drilling, beginning in January, and subsequently intersected kimberlite in each of the first 10 anomalies tested. The company unearthed an 11th kimberlite elsewhere on the property while preparing sites for summer drilling.

The kimberlite rocks are described as olivine-dominated, fragmental and tuffisite volcaniclastics, representing crater and possible diatreme facies.

The recovered kimberlite is being analyzed to determine whether it is diamondiferous. Initial results are expected in early May.

A review of the geophysical data has since identified other targets. A planned summer program will include the drilling of new targets along with additional work on the kimberlites discovered to date.

Also planned are an initial 50,000-km airborne geophysical survey and heavy mineral sampling.