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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: Letmebe Frank who wrote (350)	12/19/2002 8:53:15 AM
From: Famularo	Respond to of 16206

Ashton Mining of Canada (ACA : TSX : C$1.24) - SPECULATIVE BUY - 12-month target price: N/A Graeme Currie Comment: Ashton releases positive mini-bulk sample results from Renard 3 Ashton, and 50/50 partner SOQUEM, has released the results from the second of three mini-bulk samples taken from Renard 4, 3 and 2, in late Q3 and early Q4. The Renard cluster of pipes is located in the Otish Mountain region of Quebec. The highlights from Renard 3 results released on Wednesday . An overall average grade of 134 cpht (1.34 carats per tonne) was reported, which is well above our threshold of 50 cpht, which we have noted in previous comments regarding this anticipated news. The five largest stones weighed 0.73, 0.31, 0.25, 0.23 and 0.22 carats and were reported as colourless composite or colourless single crystals. This exceeds our previously reported minimum large stone size expectation of 0.25 carats. The results from Renard 3 are double that of the initial mini-bulk samples taken and reported from Renard 2, which yielded a grade estimate of 69 cpht, and from Renard 4, which yielded 64.7 cpht. As of yet, Ashton has not set out a budget for exploration in 2003, either in Quebec, Nunavut or Alberta. As results to date from the Foxtrot property in the Otish Mountain region remain the most encouraging, coupled with accessibility issues, we would expect that this area would receive the lions share of expenditures in H1/03. In the junior diamond exploration theatre, Ashton remains among the best in terms of exploration (and results) leverage, in our view. The company is well funded, with a pro forma estimate of working capital at $13 million for December 31, equal to about $0.25/share. For risk accounts, Ashton is maintained as a SPECULATIVE BUY. We would continue to emphasize that the risk/return leverage for this junior is high and that Wednesday's release has certainly enhanced our view regarding the exploration and development potential for this diamond camp.