News Release - THREE MORE PIPES
ASHTON MINING OF CANADA INC.
TSE, ME SYMBOL: ACA
FEBRUARY 4, 1997
Ashton Discovers Another Three Kimberlitic Pipes in
Alberta
VANCOUVER, BRITISH COLUMBIA--John S. Auston, President & CEO of
Ashton Mining of Canada Inc. is pleased to announce that three
further holes in the Company's drill program in north-central
Alberta have intersected kimberlitic rocks.
The three recent holes were drilled on separate geophysical
anomalies on the Buffalo Hills Property in a drill program which
to date has identified five kimberlitic bodies. This
identification of five kimberlitic bodies in five exploratory
drill holes is highly encouraging. The program will test 10
anomalies, all of which display the characteristics of
kimberlite-style volcanism.
The holes were drilled vertically through glacial overburden and
into kimberlitic material displaying crater and diatreme facies
textures similar to those reported in the previous two drill
holes. Glacial overburden was encountered to a depth of 6.7
metres (22 feet) on anomaly 14, 64 metres (210 feet) on anomaly
7A, and 13.4 metres (44 feet) on anomaly 6-1. All holes remained
in kimberlitic material until termination at 200 metres (656
feet).
Drilling on additional anomalies is in progress, and many
anomalies of similar size and geophysical character remain to be
tested. Various studies and analyses now are required to evaluate
the diamond potential of the kimberlitic pipes. Ashton also has
initiated a review to determine the exploration program and
budgets that will be required to evaluate the 5.8 million acres of
mineral rights presently under title.
As reported previously, Ashton Mining of Canada Inc. and Pure Gold
Resources Inc. have entered into an option agreement with a large
Alberta energy company whereby Pure Gold has funded the first
$500,000 of exploration expenditures and Ashton has the option to
fund the next $5 million to earn interests of 15 percent and 42.5
percent interest respectively, following which the three companies
would form a joint venture. Ashton is operator of the program.
Ashton is a diamond exploration company with interests in a wide
range of properties in Canada and the United States. It is 62
percent-owned by Ashton Mining Limited of Australia, a leading
explorer, producer and marketer of diamonds which holds an
interest of 40 percent in the Argyle diamond mine in northwestern
Australia.
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