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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA)

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To: Jesse who wrote (3374)1/8/1998 11:08:00 PM
From: Jesse  Read Replies (1) of 7966
 
Hi Folks! Just wanted to re-post an important piece citing some of the real advantages of mining for diamonds in Alberta:
- - -
southam.com

(12/30/97, Edmonton Journal: Bryant Avery, Journal Business Writer)

-Buffalo Hills has some clear advantages for diamond hunters.

First, Alberta's climate and terrain are friendlier than at the proven sites near Lac de Gras, N.W.T. Oil and gas company roads make access a breeze.

Second, the Ashton pipes are large, whole and nearly at the surface. At Lac de Gras, by comparison, the kimberlites of BHP-Dia Met's Ekati mine or Aber-RTZ's Diavik project are underwater and small.

To develop the N.W.T. finds, those companies will need to mine several pipes and drain lakes or put up costly retaining walls. BHP, for example, has a cluster of five pipes in its development plan, with the first pit less than a kilometre across and under a lake.

The kimberlites northeast of Peace River, on the other hand, are land-based. They are also virtually unique in the world because they have not been eroded, Leckie said. "You can actually see the entire volcanic cones."

...In addition, Buffalo Hills has tremendous economic advantages, including existing roads, nearby suppliers and services and little ground cover to strip away.

Eccles estimated diamonds taken from the hostile terrain of N.W.T. may cost $40-US per tonne to mine. In Alberta, the figure could be as low as $15-US per tonne.

...What's more, the search is spreading. Eighty per cent of the province is now leased. "Zero per cent of Alberta has been written off for diamonds," Eccles said. "This is a completely new resource for Canada. How often can you say that?"

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-just more to think about!

-j
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