ANNUAL REPORT REVIEW — Ashton to bid for Crater of Diamonds

Ashton Mining of Canada (TSE) has entered into an agreement with Texas Star Resources (VSE) to bid for the development of the Crater of Diamonds lamproite in Arkansas.

Ashton says the rock type that hosts Crater of Diamonds, olivine lamproite, is identical to the host of the diamond-producing Argyle mine in Australia.

Ashton Mining of Australia has a 40% interest in that project.

Under the terms of the agreement, the major has the option to join Texas Star in a bid to obtain the mining rights for Crater of Diamonds. The bid is subject to positive results from a 10,000-ton sampling program designed to confirm the grade and provide an estimate of stone value.

“Ashton recognizes the Crater of Diamonds as one of the more significant diamond occurrences in North America,” says Ashton President David Hurburgh.

“The possible opportunity to evaluate this deposit represents a major new phase in Ashton’s plans to build its North American diamond business.” The Crater of Diamonds has operated as a state tourist park for years. Since 1989, companies exploring for diamonds in the park have uncovered a potential resource of 78 million tons to a depth of 600 ft.

If the bid is successful, Ashton will have a 51% interest in the Crater of Diamonds. The bid is subject to approval by the U.S. Department of the Interior.