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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA)
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To: zarman who wrote (2236)9/17/1997 10:00:00 AM
From: Phoenix   of 7966
 
Zarman
You raise some interesting points and are stimulating useful debate on this thread. Its one thing to throw out vague statements about how you are going to short etc as some do, but at least you are trying to bring some kind of logic into the equation. I am not familiar with the cnb story but it is hard for us to make comparisons based on the incomplete information you provided. For eg
1. What is the success rate in finding diamondiferous pipes?
2. What kind of micro/macro counts are they getting?
3. What about carats per ton? If they are so far advanced they should have this critical info.
4. Are they in pipes or dykes? Dykes are generally much smaller.

As for why I am long on Ashton.
1. They have a 100% success ratio in finding pipes by aeromag and have even found kimberlites where the geophysical signature was very weak (K14c). They even found one kimberlite with a bulldozer!
So it is likely that they do indeed have hundreds of pipes on this huge land position.

2. More than half of the kimberlites are diamondiferous.

3. The geophysical signatures are large and regular (eliptical or almost circular). This is the shape of a diatreme (not a dyke) which suggests that the anomalies are relatively uneroded pipes. This means large tonnage.

4. They have not even drilled thier best targets yet - but merely the ones that are most convenient.

5. K14c has spectacular micro/macro counts. For comparison, Diamet's Misery Pipe had 25 macros/10kg in a 60kg sample (Kaiser Express last Friday) and k14c had 21 macros/10 kg in a 43 kg sample.

6. Ashton has stated that most of the macros are "clear" but broken by the drill bit. This is extremely significant. Clear implys gem quality. Broken by the bit implies bigger stones. So in a sample that was collected by drilling blindly through the overburden (ie not highgraded) they got perhaps several hundreds of dollars worth of diamonds. Also, this pipe is so close to k14 that it may in fact be part of the same pipe - and the k14 anomaly measures 200 X 300 metres! ie big tonnage!

7. The pipes are close to the surface, in an easily accessable and politically exemplary environment.

8. Ashton's parent, who we would assume is calling the shots, is a highly successful and respected diamond producer. They also tend to be conservative.

9. The golds are out because of the scams and the prevailing price. Diamonds are in (as per Southern Era).

10. There is a lot of $ out there looking for the next Diamomd Fields. Right now this looks like a verrrrrry good candidate.

11. We are very early in the game and have already found some very juicy goodies. Statistically, the best should be yet to come. The upside boggles the imagination.

Cheers!
P.

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