DIAMOND PAGE — Ashton pulls diamonds from property in Alberta

Ashton Mining of Canada (ACA-T) has released results of diamond analyses from four additional kimberlite pipe-like bodies drilled earlier this year in the Buffalo Hills area of north-Central Alberta.

To date, the company has released partial results from seven of the 11 kimberlites discovered while drilling a cluster of geophysical targets within a 100-sq.-km area. Microdiamonds have been found in six of the seven pipes analyzed so far.

The latest results confirm that pipes K4B, K5A and K6 are diamondiferous.

However, no diamonds were recovered from a 77.4-kg sample of kimberlite K4C.

Selected intervals of the drill core from kimberlite K4B yielded just three microdiamonds from a combined 197.3-kg sample. The geophysical anomaly representing K4B measures 350 by 400 metres. K4B is covered by 8.5 metres of overburden.

Selected core samples totalling 196.9 kg from the K5A kimberlite returned 43 micros. It is covered by 14.3 metres of overburden and has a geophysical signature measuring 600 by 600 metres.

The K6 kimberlite yielded three macrodiamonds and 33 micros from a combined 153.7-kg sample. The largest macro measures 1 mm in size. (Macrodiamonds are defined as those that exceed 0.5 mm in size in at least one dimension.) K6 has a geophysical signature measuring 450 by 600 metres and is covered by 13 metres of overburden.

Previous results showed that three other kimberlites — K2, K4A and K14 — were also diamondiferous. Of particular importance is K14, which yielded a previously reported 11 macros and 139 micros from a total of 152.5 kg of sample.

Analysis of additional kimberlite material from K14 recovered 1 macro and 51 micros from a 51.6-kg sample.

To date, K14 has yielded a total of 12 macros and 190 micros from a combined 204.1 kg of drill core sample. The four largest macros recovered measure 1.5, 0.9, 0.8 and 0.8 mm.

The K14 kimberlite is covered by 7 metres of overburden and is defined by a geophysical anomaly measuring 300 by 200 metres.

Additional processing of selected core samples from kimberlite K4A has led to the recovery of 1 macro and 3 micros from a total of 197.3 kg of sample.

An additional 90.2-kg trench sample of kimberlite K2 yielded 2 micros, boosting the number of micros recovered to date to three, derived from a total of 180.9 kg of sample.

.SMeteoric rise

“While the K14 results remain interesting, they are not particularly exiting,” states mining analyst David James in Canaccord Captial’s daily newsletter. “Roughly 200 pipes have been discovered in the Northwest Territories and about 10, an unusually high percentage, appear to be economic.”

James adds that “Ashton’s meteoric rise appears to have been largely generated by rumors and Internet hype, with the stock’s rise from the $2 region in mid-April to a recent high of $8.05 representing an increase of about $125 million in market [capitalization].”

Ashton itself cautions that results from such small samples do not provide sufficient information to determine grade and quality and that significantly larger samples are required to evaluate the potential for commercial operation.

Results from the remaining four pipes are expected over the next few weeks, and Ashton plans to resume exploration work in June. The work will include an aeromagnetic survey of the entire Buffalo Hills property and adjacent holdings.

Buffalo Hills is a joint venture among Ashton, Alberta Energy (AEC-T) and Pure Gold Resources (PUG-T).

Ashton, as operator, can earn a 42.5% interest in the original 1.4-Million-Acre property from Alberta Energy by spending $5 million on exploration. Pure Gold holds the right to a 15% interest.

The partners share ownership of an additional 4.4 million acres, where exploration expenditures will be shared proportionately, and have acquired a position in an additional 21 million acres of ground in the Buffalo Hills area from Cayo Resources (CAYO-C).

Ownership of that land package is held 40% by Cayo, 25.5% by Ashton, 25.5% by Alberta Energy and 9% by Pure Gold.