Ashton discovers kimberlite south of Coronation Bay

A decision by Northern Empire Minerals (NEM-V) to fund its share of drilling on the Kikerk Lake diamond joint-venture project has paid off with the discovery of a new kimberlite body, dubbed Potentilla. The project is situated 500 km north of Yellowknife and 100 km southeast of Kugluktuk (formerly known as Coppermine) in the territory of Nunavut.

Ashton Mining of Canada (ACA-T) uncovered the kimberlite while drill-testing a magnetic geophysical anomaly at the head of a well-defined indicator mineral train. A vertical hole drilled in the centre of the anomaly intersected kimberlite breccia beneath 9.9 metres of glacial overburden to a depth of 142.3 metres, before passing into a hypabyssal phase of kimberlite. The hole was shut down while still in hypabyssal kimberlite at a depth of 184.7 metres.

A second hole was drilled from the same location as the first, but at an orientation roughly parallel to the longest dimension of the anomaly. Collared at a -53 angle, the second hole intersected kimberlite breccia from 9.7 to 98.4 metres downhole, followed by 8.6 metres of hypabyssal kimberlite to a depth of 107 metres. Hole 2 was terminated in sedimentary rock at 161.2 metres.

The Potentilla kimberlite has a magnetic signature measuring approximately 140 by 60 metres. The two holes suggest that the kimberlite body extends 65 metres from the centre of the anomaly along its longest dimension. Material from the Potentilla discovery will be tested for microdiamonds at Ashton’s North Vancouver laboratory.

Originally staked in 1993 by the Hunter Exploration Group, the 154-sq.-km property was optioned to Caledonia Mining (CAL-T), which conducted initial till sampling and geophysical surveys. Caledonia joint-ventured a 30% interest in the property to Northern Empire, a Northair Group company, in 1998. After conducting additional till sampling that returned up to 5,000 kimberlite indicator mineral grains in one particular sample (many of the grains were adhered with kimberlite alteration rinds or kimberlite material), Northern Empire unsuccessfully tested four potential targets with 11 core holes totalling 549 metres.

Ashton came on board last year with a deal allowing it to earn an initial 52.5% interest from Caledonia by spending US$750,000 on exploration by May of 2003. The company can boost its interest to 59.5% by carrying Caledonia through completion of a bankable feasibility study. Northern Empire can maintain its 30% interest working interest by contributing its share of exploration costs. The property is subject to a 2% net smelter return royalty and a 2% gross over-ride royalty.

Ashton collected about 500 till samples from the Kikerk Lake property in 2000 and further defined at least two distinct indicator mineral trains with varying mineralogy, including eclogitic pyrope and G10 garnets. One diamond, measuring 1.4 by 0.68 by 0.6 mm, was recovered along with more than 1,900 indicator mineral grains from a single till sample taken near the head of the dispersion train associated with the newly discovered Potentilla kimberlite.

As part of this year’s $650,000 budgeted program, Ashton conducted a ground geophysical survey in April that identified five anomalies associated with the mineral dispersion fans.

During the recent drilling program, Ashton tested a second target associated with a linear magnetic feature, 1 km east of the Potentilla discovery. Two holes partially intersected a highly-altered, clay-rich, serpentine-, carbonate- and phlogopite-bearing breccia.

Drilling problems forced the early termination of the first angle hole after cutting only 0.4 metre of the breccia unit at 68.9 metres downhole. The second hole was collared at -65 and intersected the altered mafic breccia from 95.7 to 123.4 metres before shutting down. Samples of the unit will undergo petrographic analysis to determine if it is kimberlitic.

In order to fund its share of the 2001 exploration program, Northern Empire has arranged a non-brokered $405,000 private placement financing of 2.7 million special warrants priced at 15 apiece. Each special warrant will be exchangeable into one common share and one share purchase warrant exercisable at 15 in the first year and 17 in the second year.

In the meantime, Ashton has made a new kimberlite discovery on the 531-sq.-km Kim property, which adjoins the western and northern property boundaries of Kikerk Lake. During the summer Ashton continued to investigate a number of indicator mineral dispersion fans identified in previous years. A follow-up till sample taken this year returned more than 300 indicator grains, as well as a diamond measuring 0.7 by 0.56 by 0.45 mm. Further prospecting uncovered kimberlite float over an area of 140 by 150 metres.

A vertical hole was collared in the centre of the float area resulting in the discovery of the Artemisia kimberlite body. The hole intersected kimberlite breccia close to surface and shut down in kimberlite at 169.2 metres of depth. Samples will be shipped to Ashton’s North Vancouver lab for caustic fusion analysis.

The Kim property is part of the Slave regional joint venture between Ashton and Pure Gold Minerals (pug-t). Ashton has an 87.3% interest in the joint venture, which covers 2,300 sq. km of ground. The remainder is held by Pure Gold.

The Kim and Kikerk Lake properties lie 500 km north of Yellowknife and 100 km southeast of Kugluktuk (formerly known as Coppermine).

Just 15 km southwest of Kikerk Lake sits Rhonda‘s (RDM-V) diamond-bearing Knife pipe. Earlier this spring, the Canadian exploration division of De Beers completed six delineation holes, intersecting 1,124 metres of kimberlite. These six holes, together with four holes drilled in 2000, confirm the multi-phase pipe runs 390 metres north-south and 230 metres east-west, and covers a surface area of 6 ha.

Approximately 9 tonnes of kimberlite were collected from the six holes and shipped to De Beers’ South African lab for macrodiamond analysis. De Beers can earn a 70% interest in the 10-sq.-km property, 80 km south of Coronation Bay, by spending $10 million on exploration over six years. Rhonda will retain a 30% interest carried to production.

De Beers discovered the Knife pipe last year. Twenty samples representing an aggregate of 397 kg of core yielded nine macros and 208 micros weighing a total of 0.1275 carat. (A macro exceeds 0.5 mm in at least one dimension.) One 20-kg sample, in particular, returned 54 stones weighing 0.0475 carat from a 6-metre interval.

Rhonda also holds a 100% interest in the 480-sq.-km Inulik property, which is contiguous with the Knife property. The junior carried out a summer sampling program across the property, collecting some 570 glacial till samples.

Further to the southeast lies Ashton and Pure Gold’s Ric property, held under the Slave regional joint venture. In late August, Ashton put two angle holes into the Perseus dyke system at 290 and 420 metres, respectively, along the interpreted strike from the initial discovery area. Both holes intersected a 10-metre kimberlite dyke similar in character to material from the discovery holes. Drilling to date confirms that Perseus is a 10-metre thick dyke that dips about 19 degrees to the north over a distance of at least 470 metres.

Ashton discovered the Perseus dyke last year after a sampling program uncovered diamonds in till at two sample sites. One site yielded 14 microdiamonds from 125 kg of till, while 500 metres to the east, another till sample returned a stone measuring 0.85 by 0.6 by 0.6 mm.

Follow-up prospecting in the area revealed abundant kimberlite float widely distributed over a strike length of 1.4 km. Four separate samples of the float all contained diamonds, with the best results coming from a 31-kg sample that returned nine micros.

Ashton sunk five holes into Perseus last fall. Four of the holes were spotted from the same site, while the fifth stepped out 50 metres to the east. A total of 55 micros were recovered from a 211-kg aggregate core sample.

Kennecott Canada Exploration has also a made a number of recent kimberlite discoveries in the immediate area, including the Anuri and Anuri East kimberlites on Tahera‘s (TAH-T) Rockinghorse property.