Ashton Announces Drill Program on Kikerk Lake Property
VANCOUVER, B.C.--(BUSINESS WIRE)--July 5, 2001--Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. (``Ashton'') (TSE:ACA. - news) is pleased to announce that a drill program will be carried out this summer on the Kikerk Lake property in Nunavut.
The Kikerk Lake property consists of 15 mineral claims comprising approximately 15,400 hectares. It is situated 30 km north of the diamondiferous Perseus kimberlite located on Ashton's Ric property, and 15 km northeast of the diamondiferous Knife kimberlite.
More than 900 heavy mineral samples have been collected on the property, including approximately 500 samples collected by Ashton in 2000. This work has identified at least two distinct indicator mineral dispersion fans with varying mineral composition, including eclogitic pyrope garnets, G10 garnets and one diamond measuring 1.40 x 0.68 x 0.60 mm. The diamond, together with more than 1,900 indicator minerals, many with fresh abrasion characteristics, was recovered from a single till sample near the head of one of the dispersion fans. While encouraging, an isolated diamond occurrence in a till sample must be replicated before any inference can be drawn as to the presence of a diamondiferous kimberlite nearby.
As part of this year's program, Ashton conducted a ground geophysical survey in April. Interpretation of the geophysical data has identified five anomalies associated with the indicator mineral dispersion fans. Additional ground geophysics and limited heavy mineral sampling will be carried out in July with drilling of the most promising targets to follow in August.
Currently Caledonia Mining Corporation (``Caledonia'') and Northern Empire Minerals Ltd. (``Northern'') respectively hold a 70 percent and 30 percent interest in the property subject to a two percent royalty on all diamond and mineral production. Ashton's activities on the property are governed by an option agreement with Caledonia which entitles Ashton to earn a 52.5 percent interest in the property from Caledonia by incurring $750,000 in exploration expenditures not later than May 31, 2003. Under a recently negotiated interim agreement, Northern can elect to contribute its 30 percent pro rata share of the current $650,000 program, or dilute its interest to approximately 17 percent.
Brooke Clements, Professional Geologist and Ashton's Vice President, Exploration, is responsible for the design and conduct of the exploration programs.
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