DIAMOND PAGE — Ashton ends winter drilling on up note

Spring breakup conditions in north-central Alberta have prompted Ashton Mining of Canada (ACA-T) to wrap up a successful winter exploration drilling program on the Buffalo Hills joint-venture property.

A total of nine new kimberlites were found during the 1998 winter program, bringing to 23 the number of kimberlites discovered to date. Two of the three most recent discoveries, dubbed K-3, K-95 and WP, were made in areas 25 km south and southwest of the K-14 kimberlite complex, while the third was found just 550 metres north

of K-14.

The kimberlites occur in a number of loosely defined clusters within the 1.4-million-acre property, held 42.5% by Ashton, 42.5% by Alberta Energy (AEC-T) and 15% by Pure Gold Minerals (PUG-T). The partnership also covers an additional 4.4 million acres of surrounding ground. A separate package, comprising 22.5 million acres, is held 49% by Pure Gold, with the remaining 51% split equally between Ashton and Alberta Energy.

Kimberlite K-3 is represented by an aeromagnetic signature measuring 650 by 500 metres and lies beneath 29 metres of overburden; K-95 coincides with a 200-by-200-metre anomaly and is covered by 26 metres of overburden; and WP has a magnetic signature of 150 by 100 metres and is covered by 30 metres of overburden.

The first set of microdiamond results from the winter discoveries are expected in three to six weeks.

In addition to the exploration drilling, Ashton managed to collect a 450-tonne bulk sample from the K-14 kimberlite using two reverse circulation rigs before breakup conditions ended the sampling. The bulk sample will be used to further evaluate K-14, which had previously yielded 7.79 carats of diamonds larger than 0.8 mm in size from a 44.87-tonne composite sample, giving a preliminary grade of 17.4 carats per 100 tonnes (or 0.174 carat per tonne). The seven largest stones weigh a collective 3.2 carats, representing 41% of the total carat weight.

The largest diamond, a 1.31-carat stone, was described as “a single crystal, of silver-grey appearance, with many dark inclusions.” The other six stones are said to be generally clear.

Ashton says the results demonstrate the presence of commercial-sized stones, however, there is a high degree of variability between samples recovered from different areas of the K-14 complex.

Preparations are under way for the installation of a 10-tonne-per-hour, modular dense-media-separation diamond recovery plant on site in the Buffalo Hills area. Plant design and construction will be managed by Vancouver-based H.A. Simons.

Ashton has yet to decide where it will treat the 450-tonne bulk sample from K-14. If it waits until the new recovery plant is constructed, results will not to be available until early into the fourth quarter. Ashton is currently reviewing the possibility of processing the sample in a contract plant, which would provide a quicker turnaround time.

A 40-tonne, mini-bulk drill sample was also collected from the K-91 kimberlite. This material will be processed in Ashton’s North Vancouver plant.

The K-91 kimberlite lies 2.5 km to the northwest of the K-14 complex. The previous drilling of four holes returned a 0.3-carat parcel from a 0.85-tonne sample, for a preliminary grade of 35.4 carats per 100 tonnes.

The two largest stones recovered weigh 0.14 and 0.13 carat.

Results of the K-91 mini-bulk sample are expected to be available early in the third quarter.