DIAMOND PAGE — Ashton finds five kimberlites in Alberta

With two-thirds of the 1999 winter drill program now complete, Ashton Mining of Canada (ACA-T) reports it has discovered five new kimberlites in the Buffalo Hills region of north-central Alberta.

Initial drilling of the discoveries intersected variable thicknesses of kimberlite in “pipe-like” and “bed-like” formations, and Ashton says additional drilling will attempt to determine the geometry of these bodies. The kimberlite bodies were found under depths of overburden ranging from 34 to 124 metres. Following detailed logging, kimberlite samples will be sent for microdiamond analysis at Ashton’s laboratory.

Further testing of geophysical targets using two core rigs will continue as long as weather conditions permit. To date, 31 kimberlites have been discovered on the Buffalo Hills joint-ventured ground, and Ashton expects to find more.

On completion of the 1999 program, which is budgeted at $7.4 million, Ashton and Alberta Energy (AEC-T) will each hold a 45% interest in the central, 1.4-million-acre Buffalo Hills core group of claims, plus an additional 4.1 million acres of surrounding ground, including the Birch Mountain, Loon Lake, Rabbit Lake and Muddy River properties. Pure Gold Minerals (PUG-T) will hold the remaining 10%.

On the much broader, 22.7-million-acre Cayo package, Ashton and Alberta Energy will each hold a 35% share, and Pure Gold, the remainder.