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

To: Famularo who wrote (3064)	12/2/1997 3:44:00 PM
From: L. D.	Respond to of 7966

Good results but the jury's still out, says analyst Ashton Mining of Canada Inc ACA Shares issued 20,836,399 Dec 1 close $5.45 Tue 2 Dec 97 In the News Also Pure Gold Minerals Inc (PUG) Also Alberta Energy Company Ltd (AEC) Results announced earlier today by Ashton Mining from its K-91 kimberlite pipe in northern Alberta are worthy of stirring investors in a depressed market, a company spokesman says. "These are our best results to date from a core sample like that," says investor relations officer Susan Morrison. "It would definitely be one on which we'd do a mini-bulk sampling." However, Canaccord's prudent analyst David James cautions the results are better described as "among the best" Ashton has produced to date, but still are unspectacular. "The stone counts are good," Mr James says, noting Ashton's figures of 14 micros and 0.7 macros per 10 kgs of core. "I would say it's quite encouraging." Still, the analyst notes that the drilling sample, at 100 kgs, is relatively small and agrees with the company that the results warrant a mini bulk sampling, which Ms Morrison says will probably take place in January as part of Ashton's winter program. "At that point, we should have all our results in and will know where where we want to focus" Ms Morrison told Stockwatch. If results from the mini bulk sample are good, a bigger bulk sampling will be made, she says. If results are disappointing, Ashton will target some of the remaining 70 or 80 anomalies the company has identified. The latest results from a kimberlite pipe at Ashton's Buffalo Hills diamond play, which totals 28.3 million acres, is "in the realm of interest in Northwest Territories terms," Mr James believes. However, "the macro-to-micro ratio is quite small, again in comparison to the Territories." K-91 is located 2.3 kms north of Ashton's most promising kimberlite pipe to date, K-14. Mixed results from a mini-bulk sampling at K-14 briefly caused excitement in the market in trade on November 12, but they failed to substantially alter the company's value. The latest news similarly did little for Ashton's share price. Near the close of trade on the TSE, the stock was off 0.15 to $5.40 on 106,000 shares. That is not far off a recent low of $4.80 on November 27. Mr James says the results fall short of pursuading him that Ashton is undervalued. "It's probably adequately priced, if somewhat overpriced," he says, noting Ashton's market cap is over $100 million. "It's a good start, but we certainly don't have a mine that I can talk about now." The Alberta diamond play has been followed keenly by newsletter writer John Kaiser, who first recommended the stock in the Kaiser Bottom Fish Report of December 23, 1996 at $0.96. Mr Kaiser has written volumes for his subscribers, analysing and commenting on nearly every development in the emerging northern Alberta area play. In his most recent pronouncement on Ashton, made November 20 in the KBF Tracker, Mr Kaiser stated that of all the stocks he follows, Ashton is the most likely to turn into a $20 home run. "The hunt has only just begun," he wrote. However, Mr Kaiser agrees with analyst James that for the time being, the stock appears to be fairly priced. Ashton and Pure Gold Minerals have an option agreement with Calgary-based giant Alberta Energy whereby Pure Gold and Ashton have the right to earn interests of 15 percent and 42.5 percent respectively in the Buffalo Hills property. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com