Mini-bulk sample completed at K252

Encouraged by mini-bulk sample results from kimberlite K252 in north-central Alberta, Ashton Mining of Canada (ACA-T) intends to undertake a preliminary economic analysis before proceeding with the collection of a larger sample.

The mini-bulk sample results confirm initial grade estimates and indicate potential for commericial-size stones. Ashton says the economic threshold for kimberlites found in northern Alberta may be much lower than those in Canada’s far-northern territories, thanks in part to the existing infrastructure that was built to accommodate the oil and gas industry.

Kimberlite K252 has so far yielded the most promising results of the 36 kimberlites discovered to date by Ashton and its partners in the Buffalo Hills region. A 22.8-tonne mini-bulk sample of kimberlite, collected this past March from K252, has yielded a 12.54-carat parcel of diamonds greater than 0.8 mm in size, giving the sample a grade of 0.55 carat per tonne, or 55 carats per 100 tonnes. By comparison, an initial, 1.3-tonne sample returned 0.85 carat, for a grade of 66.2 carats per 100 tonnes.

The mini-bulk sample was collected from three large-diameter reverse-circulation holes drilled to depths of just over 200 metres, near the interpreted centre of the 2-ha body. K252, which is covered by up to 75 metres of overburden, consists of two distinct phases: an upper fine-to-medium-grained volcaniclastic kimberlite and an underlying kimberlite breccia. Two of the holes ended in kimberlite breccia, whereas the third hole was shut down in mudstone.

The 22.8-tonne mini-bulk sample consisted of 13.4 tonnes of volcaniclastic kimberlite and 9.4 tonnes of kimberlite breccia. The sample was processed through Ashton’s dense media separation plant in North Vancouver. The 13.4-tonne sample of volcaniclastic material yielded 4.51 carats of diamonds, for a grade of 33.7 carats per 100 tonnes, whereas 9.4 tonnes of breccia returned 12.54 carats, equal to 85.4 carats per 100 tonnes.

The largest recovered diamond was a 0.94-carat colourless composite crystal, which came from the breccia. The second largest stone, a colourless, 0.65-carat, was recovered from the volcaniclastic phase. The next six largest diamonds weighed between 0.17 and 0.28 carat.

Sections consisting primarily of mudstone were encountered within the kimberlite breccia. The three largest vertical intersections of this material measured between 17.4 and 22.5 metres thick and had an aggregate weight of 4 tonnes. This material was processed separately and returned a total of 0.06 carat of diamonds larger than 0.8 mm. If this result is combined with the result for the kimberlite sample, the estimated diamond content of the 26.8 tonnes of mini-bulk sample is 47 carats per 100 tonnes.

Ashton and Alberta Energy (AEC-T) each hold a 45% interest in the Buffalo Hills project. Pure Gold Minerals (PUG-T) owns the remainder.

In related news, Pure Gold has retained investment house Canaccord Capital to place, on a best-efforts basis, 3.5 million special warrants priced at 15 apiece, for proceeds of $525,000. Each special warrant will consist of one share and a half-warrant. A whole warrant will entitle the owner to buy an additional share at 17.5 for one year. Directors and insiders of Pure Gold have agreed to buy up to half of this offering.