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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Phoenix who wrote (2741)	10/31/1997 8:50:00 PM
From: Famularo	Respond to of 7966

Diamond royalty acquisition in Alberta Ashton Mining of Canada Inc ACA Shares issued 20,836,399 Oct 30 close $5.25 Fri 31 Oct 97 News Release See Frontier Pacific Mining Corporation (FRP) News Release Mr John Mirko reports The company has taken steps to expand and diversify its mineral project portfolio into the diamond development field by acquiring by way of an absolute assignment agreement a 2.0% gross overriding royalty and a 2.0% net smelter return royalty in 923 applications for metallic and industrial mineral permits covering over 20 million acres in the province of Alberta. This acquisition allows Frontier to participate in all revenue from any new diamond discoveries on the properties for no cost. Reported exploration to date carried out by 690688 Alberta, Pure Gold Resources (T.PUG), Cayo Resources, Ashton Mining of Canada and others on the property has resulted in the discovery of a 0.392 carat diamond in gravels within the Edmonton project block and over 50 circular high resolution aero-magnetic anomalies identified over the Lethbridge project block. Four of the anomalies are proximal to the discovery site of the Legend Diamonds of 0.14 and 0.17 carats, and the beige-green Black-Butte diamond chip. Exploration work is expected to commence in the near term on the Peace River-Caribou Hills project block areas. Pursuant to the terms of the royalty agreement, Frontier is entitled to a GORR equal to 2% of the average appraised value of all gem and industrial diamonds produced, recovered, sorted and graded from the property free and clear of all costs of development and operation, and subject only to government mineral and mining taxes and royalties and the fees and expenses of graders, to be paid to Frontier. Average appraised value means the average of the valuations in Canadian dollars determined by two independent graders, one appointed by the property holder and one appointed by Frontier. Such independent graders would be duly qualified and accredited and would sort, grade and value the diamonds in accordance with industry standards, having regard to, but without limiting the generality of the foregoing, the commercial demand for the diamonds, the grades of the diamonds (gem or industrial) and the colors, sizes and clarity of the diamonds (gem or industrial). Each independent valuator would value each particular classification of the diamonds in accordance with the industry price books, standards and formulas. The intention of the parties is that the GORR is to be paid to Frontier on this basis regardless of the price or proceeds actually received by the property holder for or in connection with the diamonds or the manner in which a sale of the diamonds to a third party is made, and without deduction except for the fees and the expenses payable to the two graders, which will be paid by the property holder. The GORR will be paid to Frontier within 30 days of each calendar quarter, based on all diamonds from the property which were graded in that quarter. The NSR will be calculated and paid on industry standard terms on all other minerals produced. CHINA Further to the news in Stockwatch dated October 28 1997, Frontier's new vice-president of exploration, China, Antin Guo, is currently in China finalizing the company's formulation and licensing procedures for the Ding-Ma, Zhen'an gold mine joint venture. CANADA AND RUSSIA Further work on the company's Canadian portfolio of gold, copper and uranium properties will commence in the spring of 1998 with a diamond drill program financed by the company's joint venture partner on the Lion project in Northern BC. Frontier has also started the investigation and detailed assessment of a potential gold project in Russia in which a majority joint venture interest is available.

To: Phoenix who wrote (2741)	11/3/1997 2:00:00 AM
From: ICE	Read Replies (1) \| Respond to of 7966

I am glad to answer your questions, however I will try to keep the answers brief and not to technical for I am sure that the other people on this thread do not want to listen to some huge geological debate. 1. You are correct in stating that more work is needed to determine the true shape of the bodies. I infer a `champagne glass' shape for the bodies based on the fact that the last reported drill holes for the satellite pipes drilled through the volcanics and into sediments. I am assuming that these satellite pipes are in fact related to the main K14 pipe that contained volcanics down to a depth of over 200 m. Thus the main K14 pipe could be the throat of the pipe and the satellite pipes parts of the outer contacts. Although the Buffalo Head terrain has been referred to as a `craton' by many companies exploring in the region, age dating of the basement rocks has established that the basement of northern Alberta is composed of late Archean aged rocks which have been extensively remobilized in the Early Proterozoic. This means that there are small pieces of older `craton' that have been broken up and are floating in this younger `mobile' crust. This is similar to what is found in parts of Russia and is not necessarily bad. 2a. I am not saying anything against Ashton's work, I am simply stating a fact that crater facies rocks are very difficult to work with and it can be very difficult to distinguish between kimberlites and other related rocks especially if you are dealing with only crater facies material or highly altered rocks as much of the core that I have seen of Ashton's is. 2b. You are correct that crater facies are an extrusive process that is primarily emplaced by the exploded volcanic rocks falling back into the crater. These units would also build up around the edge of the crater as a tuff ring that may eventually slump back into the crater as debris flows. The extruded volcanics can result in relatively thick homogeneous units ie. Mountain Lake is the closest example (over 175 m of fairly uniform crater facies airfall material). 3. In comparing with the Fort a la Corne pipes, Kiaser may have stated one theory on their formation, however another theory is that the kimberlite were deposited by airfall processes. The roots are more difficult to find due to their large surface area and the 100 m + of cover material. The fact that the kimberlites are crater facies does not suggest that they are low grade, it only means that they are likely very complex and will have a variable grade. 4. There was a big debate on the MPV thread recently that should answer your questions on the DHK pipe. Refer to postings 5. Mineral chemistry released by the Alberta Geological Survey indicates that the area has very low diamond potential. I believe that Kaiser also stated this in his talk in Calgary a short while back. 6. The Slave province is good old stable Archean basement that has not been reworked as seems to be the case in the Buffalo Hills. The more stable and colder the crust, the deeper the lithospheric root is and the more likely that the kimberlite originated from within the diamond stability field. I hope that I have not created more questions then I have answered. The diamond results to date on ACA look very encouraging and I hope that everyone makes lots of $$$. I am sure that many more kimberlites are out there to be found!