Ashton Mining of Canada Inc -
Follow-up work completed in two areas of Buffalo Hills
Ashton Mining of Canada Inc
ACA
Shares issued 23,798,122
1998-08-14 close $1.2
Monday Aug 17 1998
See Pure Gold Minerals Inc (PUG) News Release
Mr. Donald Sheldon reports
Contrary to the perception that the search for diamond bearing kimberlite bodies
in northern Alberta has slowed, several phases of exploration work have been
completed to date and field crews are presently conducting follow-up work in at
least two areas where preliminary geophysical data show a number of magnetic
anomalies, a considerable distance from the original Buffalo Hills discovery area.
The Pure Gold, Ashton and AEC JV holds interests in 26 million acres covering a
large portion of the Buffalo Head craton. Pure Gold's interest varies from 15 per
cent in the original discovery area to 49 per cent in the surrounding Cayo Lands.
Since January 1998, on the Cayo Lands alone, approximately 213,000 line
kilometres of high resolution airborne magnetic surveys employing three separate
contractors have blanketed most of the claim blocks covering the Buffalo Head
craton. The cost of this survey alone exceeds $2-million. Preliminary interpretation
of the airborne data for the Caribou Mountain and Lesser Slave blocks (PUG 49
per cent, ACA 25.5 per cent, AEC 25.5 per cent) has identified, initially, at least
two areas where multiple magnetic anomalies require systematic anomaly
investigation and ground truthing. Presently, helicopter assisted field parties are
actively exploring in the Caribou Mountain and Lesser Slave areas. A total budget
of $3-million has been designated for this year on the above programs.
Economically viable kimberlites occur commonly in ancient cratons around the
world. The Buffalo Head craton has shown to host large carrot shaped kimberlite
bodies. In the Buffalo Hills area, out of 23 kimberlite bodies identified to date, 16
carry diamonds. One of the kimberlite bodies discovered previously, K-14, has
recovered a 1.33 carat diamond from a small sample. Pure Gold believes that the
Buffalo Head craton provides the ideal geological environment to host
economically viable diamond deposits. |
