NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ASHTON MINING OF CANADA INC.
TSE, ME SYMBOL: ACA
NOVEMBER 24, 1998
Ashton Reports K-14 Bulk Sample Results
VANCOUVER, BRITISH COLUMBIA--John S. Auston, President and CEO of
Ashton Mining of Canada Inc., reports the results of bulk testing
of the K-14 kimberlite on the Buffalo Hills Project in
north-central Alberta.
The sample of 479 tonnes was collected by reverse circulation
drilling in March 1998, and was processed by dense media
separation (DMS) at a contract facility in Arkansas. This plant
is designed to recover diamonds 1.2 mm or greater in size. Staff
from Ashton Mining Limited and Ashton Mining of Canada Inc. were
responsible for its operation during the course of the test.
The kimberlite concentrates produced by DMS processing were
initially sorted for diamonds at the contract facility. Final
processing and observation took place at Ashton's North Vancouver
laboratory.
A total of 56.45 carats of diamonds was recovered from the sample
of 479 tonnes, providing an effective grade of 11.78 carats per
100 tonnes. The two largest diamonds weigh 0.90 and 0.88 carat
respectively. Most of the diamonds are clear or greyish in
colour. Some are pale brown, and a few yellow stones also were
recovered. The diamonds have not been valued.
The effective grade of 11.78 carats per 100 tonnes is considered
disappointing, and indicates that kimberlite K-14 would be
unlikely to support an economically viable mining operation.
Despite these results Ashton remains encouraged by the overall
prospectivity of northern Alberta for diamonds. A total of 16 of
the 23 kimberlites discovered to date by the Buffalo Hills program
is diamond-bearing, which is considered a high proportion by world
averages. Drilling is currently underway at the Birch Mountain
and Loon Lake properties, which form part of the Buffalo Hills
Project, and Ashton is optimistic that additional kimberlites will
be discovered by these programs. Additionally, a bulk sample of
approximately 17 tonnes from kimberlite K-11 is being processed at
the North Vancouver laboratory.
The joint venturers on the Buffalo Hills Project are Ashton Mining
of Canada Inc. (ACA.TSE/ME, 42.5 percent), Alberta Energy Company
Ltd. (AEC.TSE and AOG.NYSE, 42.5 percent) and Pure Gold Minerals
Inc. (PUG.TSE, 15 percent). Ashton is operator of the programs.
Ashton is a diamond exploration company with interests in a wide
range of properties in Canada and the United States. It is 61.2
percent-owned by Ashton Mining Limited of Australia, a leading
explorer, producer and marketer of diamonds which holds an
interest of 40.1 percent in the Argyle diamond mine in
northwestern Australia.
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