Winter drilling program uncovers kimberlites at Buffalo Hills in Alberta

Drilling by partners Ashton Mining of Canada (ACA-T) and Pure Gold Resources (PUG-T) in the Buffalo Hills area of Alberta has identified four kimberlites, bringing to 11 the number discovered to date.

Under an option agreement with an Alberta Energy firm, Pure Gold has funded the first $500,000 of exploration expenditures so as to earn a 15% interest in the project, which covers 5.8 million acres northeast of Grande Prairie.

Ashton is the operator of the joint venture and can earn a 42.5% interest by funding the next $5 million.

Ten of the kimberlites were found by drilling 10 isolated geophysical anomalies within a 100-sq.-km area. The anomalies exhibit characteristics of pipe-like structures.

The 11th kimberlite was uncovered by bulldozer work elsewhere on the property, while preparing for summer drilling.

Logging on the first few holes indicates that most of the core is volcaniclastic crater facies kimberlite. Glacial erosion would seem therefore to have been minimal, meaning the pipes are well-preserved.

Processing and analytical evaluation of the core have begun, though results are not expected for several months.

In chronological order of discovery, the kimberlites are as follows: The partners are preparing to carry out an airborne geophysical survey over the original, 1.4-million-acre optioned property. Other geophysical surveys are being considered for the adjoining joint-venture properties, which comprise 4.4 million acres.

Summer drilling will test new geophysical targets and further evaluate those kimberlites discovered to date.