Ashton finds new pipe

Drilling by Ashton Mining of Canada (ACA-T) on the Buffalo Hills property in north-central Alberta has uncovered another kimberlite.

The discovery, known as K281, occurs 15 km southeast of kimberlite K252, which is undergoing further mini-bulk drill sampling. The first of two holes to test the magnetic feature was drilled vertically and intersected kimberlite at a depth of 37 metres. The second hole was drilled outside the interpreted limits of the magnetic anomaly, 150 metres from the first, at a 60 angle to the south. The hole hit kimberlite at a vertical depth of 80 metres.

Based on magnetic and drill data, Ashton estimates that K281 has a minimum diameter of 200 metres, though seismic and electromagnetic results suggest it may be significantly larger. K281 was one of two targets tested in the recent program. The second, which sits 300 metres south of the K91 kimberlite, was explained by the presence of numerous kimberlite boulders embedded in a 3-metre-thick basal till horizon overlying mudstone bedrock. The boulders are believed to have originated from K91.

Ashton, in a joint venture with Alberta Energy (AEC-T) and Pure Gold Minerals (PUG-T), has so far discovered 36 kimberlite bodies in the Buffalo Hills region since first beginning exploration in early 1997.

The joint venture is currently collecting a 20-tonne mini-bulk sample from kimberlite K252 using a reverse-circulation rig. An initial, 1,280-kg sample of volcaniclastic kimberlite, taken from this pipe in the fall of 2000, returned a 0.85-carat parcel of diamonds larger than 0.8 mm, indicating a preliminary grade of 0.662 carat per tonne. The largest recovered stone was a colourless composite crystal weighing 0.36 carat.

These are, by far, the best results to come out of the Alberta diamond field so far. Kimberlite K252 differed from previous targets in that it had a weak magnetic geophysical signature, whereas the others displayed obvious, strong magnetic responses. The K252 target was further defined using ground electromagnetic (EM), gravity and seismic surveys.

K252 is covered by up to 77 metres of overburden. Two distinct phases are recognized: a fine-to-medium-grained volcaniclastic kimberlite and a kimberlite breccia. As part of the current drill program, Ashton tested the interpreted dimensions of the K252 pipe with five core holes. Results suggest that K252 comprises about 2 ha. Ashton and Alberta Energy each hold a 45% interest in the Buffalo Hills project, leaving Pure Gold with 10%.

In related news, New Claymore Resources (NCS-V) announced it has delineated three closely spaced targets from a completed ground magnetometer survey on its Mountain Lake property in the Grande Prairie area of Alberta. The targets lie 10 km from the Mountain Lake kimberlitic diatreme intrusive, which was discovered by De Beers Consolidated Mines (dbrsy-q) in 1994, southwest of Peace River.

A ground magnetic survey on another property, east of Peace River, has defined a pipe-like feature that will likely be drill-tested by New Claymore this spring.

The junior has also joined the diamond exploration rush in Manitoba, where it has acquired 3,115 sq. km of exploration permits in the Oxford Lake area.

Elsewhere in Alberta, New Blue Ribbon Resources (NBL-V) is awaiting microdiamond results from the Kendu kimberlite, discovered in November 2000 on the joint-ventured Legend property, 100 km northeast of the Buffalo Hills kimberlite field. Drilling intercepted tuffsitic kimberlite breccia at a depth of 91.4 metres. The rock is green with a fine-grained serpentized matrix.

Petrographic analysis shows that the breccia consists of exoncrystic garnet, serpentized olivine and minor phlogopite, set in a fine-grained carbonate and clay groundmass. It also contains abundant mantle-derived xenoliths consisting of garnet, olivine and pyroxene. Preliminary macroscopic tests reveal indicator mineral grains of pyrope garnet, eclogitic garnet, chrome diopside, olivine, phlogopite and oxides. The magnetic signature of Kendu measures 300 by 400 metres.

New Blue Ribbon can earn a 60% interest in the Legend property from 70-30 owners Montello Resources (MEO-V) and Redwood Resources by spending $1 million over two years and issuing 300,000 shares. Eight kimberlite bodies have been previously found on the Legend property.

In a separate deal, New Blue Ribbon has signed a memorandum of understanding over the right to earn a 30% interest in 2,374 sq. km of ground held by BHP Diamonds, a subsidiary of BHP (BHP-N), in the heart of the Manitoba diamond play. The junior must incur $820,000 in exploration expenditures on the Moose River property before Nov. 1, 2001, and a further $1.2 million in the following year. At that time, BHP will have the right to increase its interest to 85% if it chooses to commit to a feasibility study. If it chooses not to commit, New Blue Ribbon can increase its interest to 40% by spending an additional $1 million, after which time BHP will again have the right to increase its interest to 80% by completing a feasibility study. BHP will continue to act as operator.

BHP’s Canadian subsidiary has carried out regional till and stream-sediment sampling programs over the Manitoba portion of the Superior Craton since 1997, and subsequently staked 2,374 sq. km in the Knee Lake region. Sampling yielded an assortment of kimberlite indicator minerals, including G10 pyrope garnets, diamond inclusion chromites, chrome diopsides, eclogitic garnets, high-magnesium picroilmenites and olivines.

An aeromagnetic survey over the entire project area has defined several targets, including both magnetic lows and highs. During the upcoming spring, up to 17 targets will be followed up with ground geophysics in preparation for drilling.