Follow-up work completed in two areas of Buffalo Hills
Pure Gold Minerals Inc PUG
Shares issued 26,379,471 Aug 14 close $0.32
Mon 17 Aug 98 News Release
Also Alberta Energy Company Ltd (AEC)
Also Ashton Mining of Canada Inc (ACA)
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. |
