I thought I'd post ACA's, PUG's and AEC's latest NR here to
liven up the thread on Diamonds in Alberta.
Although the news is a couple of days old, still good news.
Pure Gold receives encouraging Buffalo Hill results
Alberta Energy Company Ltd
AEC
Shares issued 140,360,930
Dec 6 2000 close $65.550
Dec 7 2000 6:16:37
Mr. Donald Sheldon reports
The mini-bulk sample collected this fall from the K252 kimberlite on the Buffalo
Hills property has returned the most encouraging results of the 35 kimberlites
discovered in Alberta to date by the Ashton Mining of Canada Inc./Pure Gold
joint venture.
Background
Discovered in March, 2000, the K252 kimberlite exhibits two distinct phases: a
fine- to medium-grained volcaniclastic kimberlite and a kimberlite breccia. As
reported on July 19 and Aug. 14, 2000, the initial microdiamond results from
K252 ranked among the best obtained from the Alberta program. A program of
further drilling was therefore completed in October, 2000, resulting in the
collection of 1.45 tonnes of kimberlite from four core holes. Because of difficult
ground conditions at the contact between the two kimberlite phases, most of the
material was collected from the volcaniclastic phase.
Diamond results
A 1.28-tonne sample of volcaniclastic kimberlite processed through the dense
media separation plant at Ashton's North Vancouver laboratory returned a total
of
0.85 of a carat of diamonds larger than 0.8 of a millimetre using a square aperture
screen. The largest diamond recovered was a colourless composite crystal
weighing 0.36 of a carat.
The estimated diamond content of this mini-bulk sample is 66.2 carats per
hundred tonnes. Although derived from a small quantity of material, these results
confirm the presence of a population of larger stones and substantiate the need to
collect a larger sample.
Ashton's laboratory also carried out microdiamond analysis on an 82.6-kilogram
sample of volcaniclastic kimberlite and a 37.2-kilogram sample of kimberlite
breccia collected during the fall 2000 program. The results of these tests are
summarized in table 1, together with previously reported microdiamond results.
Table 1
Microdiamond Summary
Kimberlite Date Sample Diamonds
Type Reported Weight
(kg) Micro Macro
(0.1- (+0.5 mm)
0.5 mm) (one
dimension)
Breccia 07/19/2000 65.5 101 5(1)
Volcani-
clastic 08/14/2000 41.6 34 3(2)
Volcani-
clastic 12/07/2000 82.6 84 9(3)
Breccia 12/07/2000 37.2 25 2(4)
----- --- --
Total 226.9 244 19
===== === ==
(1) Three macrodiamonds measured greater than 0.5 of a millimetre in two
dimensions with the two largest stones measuring 2.35 by 2.19 by 0.63 of a
millimetre and 1.68 by 1.49 by 1.25 millimetres.
(2) One macrodiamond measured greater than 0.5 of a millimetre in two
dimensions.
(3) Five macrodiamonds measured greater than 0.5 of a millimetre in two
dimensions, with the two largest stones measuring 1.6 by 0.68 by 0.46 of a
millimetre and 1.32 by 1.02 by 0.37 of a millimetre.
(4) One macrodiamond measured 2.45 by 1.7 by 0.45 of a millimetre.
2001 program
Pure Gold is very encouraged by the K252 diamond results and the collection of
a
larger mini-bulk sample from K252 is being planned for early 2001.
K252 was identified as a drill target by an airborne electromagnetic (EM) survey
and was further defined using ground EM surveys, a gravity survey and seismic
data. It is the first kimberlite discovered in Alberta by the joint venture to date
that
has a weak magnetic signature, unlike the previous 34 kimberlites which display a
sharp magnetic contrast against the surrounding mudstone bedrock.
The association of weakly magnetic characteristics with high diamond content in
K252 has significant exploration implications for the joint venture properties in
Alberta. Ground geophysical programs will consequently be conducted to define
and prioritize EM and seismic targets for drilling in the first quarter of the year.
The joint venturers on the Buffalo Hills property and their approximate interests
are Ashton, 45 per cent, Alberta Energy Company Ltd., 45 per cent, and Pure
Gold Minerals Inc., 10 per cent.
Ashton is the operator of the Alberta programs. Brooke Clements, professional
geologist, who is Ashton's vice-president, exploration, is responsible for the
design
and conduct of the programs.
Financing
Pure Gold is proceeding with a non-brokered private placement of up to three
million special warrants at a price of 10 cents per special warrant. Each special
warrant will consist of one share and one warrant to purchase one additional
common share exercisable for 24 months at a price of 10 cents per share. The
net
proceeds of $300,000 will be used to provide Pure Gold with working capital
and
to finance the exploration programs in Alberta and Northwest Territories. The
foregoing private placement is subject to regulatory approval.
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