I believe that this was the origins of Montello well before anyone thought of diamonds in Alberta. I don't think it panned out and I sure wouldn't want to fly on a plane using one of their engines. (LOL)
My apologies if this was already posted:
FAVORABLE INITIAL DIAMOND RESULTS INSPIRES QUEBEC AREA PLAY
The Quebec Staking Rush Has Started
By Alexander Roberts
Editor
Ahead of the Street
info@bizfn.com
Some 40 companies have staked ground in north central Quebec looking for the world's next, but elusive, commercial diamond mine. One of the first signs bringing credibility to what might become a red-hot "Area Play" of a Major Minerals Discovery is editorial coverage in a national Canadian newspaper, such as The Globe and Mail. One knows the second shoe has dropped when the newspapers feature a legendary geologist, the likes of Charles Fipke, who discovered Canada's first diamond mine ten years ago, and mentions the fact that he may be interested in the 2002 Quebec Diamond Staking Rush. According to the Globe "Sources familiar with Mr. Fipke say he has worked in Quebec before, and they believe he may be attracted by preliminary exploration results from Majescor's Otish Mountain property, which is located near a more-advanced-stage diamond find controlled by Ashton Mining of Canada Ltd."
The key to this year's excitement hinges on the spring exploration program led by Ashton Mining (Toronto: ACA). On January 18th, Ashton stoked the fires by announcing microdiamond results from their Artemisia kimberlite in northern Quebec's Otish Mountains. This is the "hot area" where mining exploration companies have staked ground and where many more are expected to stake and explore later this year. It appears, in the early running, that Ashton is the leader and this will be today's focus.
Ashton Mining of Canada Ltd. [Toronto: ACA]
$3.94 Close January 28, 2002
$4.30 52-week high $$0.49 52-week low
BACKGROUND
Of more than 3,000 kimberlites found on this planet, roughly 60 host commercials quantities of diamonds. A major diamond discovery is big news because the gross value of a kimberlite pipe can reach $10 billion. For example, the gross values of three recent diamond discoveries at Diavik, Snap Lake, and Ekati are approaching $24 billion over the life of their mineable reserves. Ashton's discoveries, together with their exposure to virtually every diamond 'play'in Canada, represent one of the best opportunities available to share in the discovery of what could become Canada's fourth economic diamond deposit
[Image Courtesy of Ashton Mining of Canada Ltd.]
Adding to the excitement are evaluations of the three major Canadian diamond deposits that host among the richest per-tonne diamonds in the world. The greater the gem quality stones, the more valuable the diamond deposit. It is a cycle that occurred twice in the previous decade, after major minerals discoveries in the Northwest Territories and Labrador. A major diamond find can instantly increase investor optimism in speculative diamond mining and exploration companies, resulting in higher stock prices for the sector.
ASHTON ADVANCES IN NUNAVUT
One problem with geological exploration is that it is meticulous detective work that can extend over a period of years, if not decades. Over vast areas, considering the large landscape covered by claims Ashton holds in Nunavut, Alberta, Quebec and Ontario, the obstacles of such exploration can be frustrating at best. Having found indicator minerals and microdiamonds in drill core samples, the excitement of advanced stage exploration continues. But will they find a commercially viable diamond mine?
The primary source of diamonds is kimberlite pipes, which are carrot-shaped volcanic intrusives that come from the depths of the upper mantle of the earth's crust. Kimberlite pipes may reach down 1000 meters and form in clusters, spreading out over 30 miles. In Ashton's case, two diamond-bearing pipes have been discovered: Potentilla and Artemisia. And there may be additional discoveries.
[Image Courtesy of Ashton Mining of Canada Ltd.]
According to a recent Canaccord Capital research report, the recent discoveries "are among the best we have seen from a discovery hole since Winspear's discovery at Snap Lake, and are comparable to such discoveries as the A-21 pipe at Diavik…" As of January 18th, Ashton's drill core and surface material samples show over 1120 microdiamonds and 120 macrodiamonds. A kimberlite sample weighing approximately 1.2 tonnes remains to be processed and we should anticipate results in the near future. Ashton's 3rd quarter report stated, "The Artemisia and Potentilla results are very encouraging and confirm the emergence of the north Slave craton as a new Canadian diamond district."
It appears the Potentilla kimberlite offers the most initial promise. It was discovered on Kikerk Lake property at the head of a well-defined indicator mineral dispersion fan. The magnetic anomaly measures approximately 140 by 60 meters. A vertical hole drilled in the center of the float area intersected a total of 169.2 meters of diatreme facies kimberlite. Ashton's drilling program also tested a one-kilometer linear structure near the Potentilla kimberlite with the intention of identifying the source of the indicator mineral dispersion fan. It is expected that exploration for that source will continue during the Spring program.
Diamond exploration experts and analysts are especially encouraged, and somewhat inspired, because the initial macro counts compare well with the Lac de Gras diamond region in the Northwest Territories that brought Canada its first commercially viable diamond mine. What one looks for in these instances are the high micro and macro counts. A three-quarter carat stone found some 35 miles away might demonstrate that the potential for a large, widely distributed cluster of kimberlite pipes. In itself, that may motivate a large number of mining exploration companies to commence explorations as early as this summer and through 2003. By early December, approximately 1.5 million hectares were staked by eager exploration companies hoping to enjoy similar discovery results invigorated by Ashton's initial finds.
WHAT TO EXPECT
In March, the excitement begins anew for Ashton as they reportedly hope to advance as many as ten indicator mineral trains to the drilling stage. Between now and then, there may be a drop off in their share price, which from a technical analysis viewpoint may provide a buy-on-the-dip opportunity for the astute investor. Others in the area, including Kennecott/Tahera, may also race against Ashton's preliminary success to delineation drill so that mini-bulk samples can be extracted for analysis. The first bump of the adventure should occur throughout the first half of the year. By summer, exploration activity in the region should be in full swing and we anticipate a multitude of rumors to be flying about. That is the fuel that drives speculation in mining exploration shares and AHEAD OF THE STREET plans to provide full coverage of the important players.
After the DiaMet and Winspear/Aber successes, which led to the significant enrichment of shareholders and the creation of new diamond wealth throughout Canada, every serious major minerals exploration company will examine the area for strategic alliances and potential acquisitions. After the first wave of speculative interest, something to expect by not later than the end of March, the number of exploration entrants will be clamoring for attention and financing. Historically, the first year of a new area discovery provides a wealth of investment opportunity. After that, the serious exploration firms with the most promising results separate away from the also-rans. Often, there will be strong investment interest for two to three years, depending upon the size and significance of the discovery. The number of exploration seasons to which an area achieves maturity is never known and that offers additional speculative opportunities. Rarely are the major victors those who were not among the initia l entrants. |
