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Gold/Mining/Energy : A CANADIAN DIAMOND HUNT -- Ignore unavailable to you. Want to Upgrade?

To: Don who wrote (251)	2/18/1998 8:17:00 AM
From: Famularo	Read Replies (2) \| Respond to of 930

Yorkton says buy Pure Gold Minerals Inc PUG Shares issued 24,870,966 Feb 16 close $1.00 Tue 17 Feb 98 Research Art Ettlinger and Douglas Leishman say why Of all the companies with mineral leases in Alberta, Pure Gold Minerals has the largest and most geologically diverse portfolio. The company has extensively covered all regions of the Buffalo Head Terrane and acquired additional lands covering portions of the Sweetgrass Arch in southeastern Alberta, the Athabasca Basin in the northeast, and the western extension of the Peace River Arch near Grand Prairie. This puts Pure Gold in one of the best positions to potentially profit from any future diamond discoveries made in the province. Within the core Buffalo Hills property, Pure Gold maintains a 15% participating interest while Ashton and Alberta Energy each have a 42.5% interest. Outside of Buffalo Hills, the three partners have an interest in over 26 million acres within and surrounding the BHT. Proximal to Buffalo Hills, within the 4.4 million acre Birch Mountain claim group, land interests remain at the proportions stated above. Further beyond the centre of the BHT however, Pure Gold has a 49% interest with Ashton Mining and Alberta Energy each having a 25.5% interest on over 22 million acres of additional lands. Last summer, Pure Gold recovered four kimberlitic indicator minerals from 11 stream sediment samples in the Caribou Mountains area of the northern Buffalo Hills Terrane. This was the first time kimberlite indicator minerals were collected from this portion of the terrane. A high resolution airborne magnetic survey was begun in December 1997 over this area and a large portion of the remaining joint venture lands. This survey will cover more than 100,000 line-km and will be followed up by infill airborne and ground magnetic surveys to identify additional kimberlite targets for drilling. In southeastern Alberta, the company recently optioned a portion of its land holdings (3.5 million acres) to Caribgold Resources Inc (CG TSE). Pure Gold currently holds a 75% interest in the Lethbridge property with the remaining 25% held by Reclamation Management Ltd (RMLL CDN). Caribgold has an option to earn up to a 40% interest pro rata from Pure Gold and Reclamation by spending $3.25 million in exploration and cash payments and by issuing 100,000 shares of Caribgold over a period of four years. Pure Gold will be operator. The Lethbridge property covers a portion of the Archean-aged Hearne sub-province and northeast trending Sweetgrass Arch. This arch is somewhat analogous to the Peace River Arch and may represent a deep tapping structure for upward kimberlite migration. Limited work to date in this area has led to the discovery of the Black Butte diatreme, which yielded one diamond chip but has a lamproitic, not kimberlitic, affinity. A 39,000 line-km HRAM survey has recently been completed over the property resulting in the identification of several magnetic features that require further ground follow-up. Elsewhere in Alberta, Pure Gold plans on flying HRAM surveys using its standard 400m line spacing with 2,000m tie lines over the Edmonton block and Grande Prairie leases this spring and its lands in the Athabasca region commencing in June. We anticipate a steady flow of news coming from Pure Gold independent of Ashton's continuing work program in the Buffalo Hills. Next to the BHT, we believe the Lethbridge property of Pure Gold/Caribgold to be the most prospective for the discovery of diamond-bearing kimberlites in the province. We recommend the purchase of Pure Gold because of its partnership with Ashton Mining and its large land position covering the Hearne sub-province and Sweetgrass Arch. The company's 15% interest in the Buffalo Hills project currently represents a deciding vote in the Ashton-Alberta Energy partnership and may offer the speculator additional leverage.