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

To: Jesse who wrote (5253)	5/29/1998 1:08:00 PM
From: Famularo	Read Replies (1) \| Respond to of 7966

* Ashton Mining of Canada (ACA : TSE : $3.35 : Issued 27.9M f.d.) During the winter exploration season in Alberta's Buffalo Hills region, Ashton Mining of Canada and partners Pure Gold Minerals and Alberta Energy Company (42.5%-15%-42.5% respectively) discovered nine new kimberlites bringing to 23 the number found since January 1997. On April 29, the first set of caustic fusion results were released for three of the new pipes with not very exciting macro/microdiamond counts (please see April 30 Daily Letter). Yesterday, Ashton released further results including the first set of diamond counts from three kimberlites in a cluster located about 30 km east of the focal K-14 pipe (we believe close to Highway 88). Core from one of these new pipes (there are six in this general area so far), known as K-11, yielded 106 microdiamonds (< 0.5 mm) and 14 macrodiamonds (> 0.5 mm) from 189.5 kg of sample for a count of 6.3 diamonds or 0.7 macros per 10 kg, with a 0.13 macro-micro ratio. Compared to caustic fusion results from the NWT, we would consider this count "interesting". "Interesting" is not much of a technical term, but considering the relatively small sizes of core samples analysed both in the NWT and Alberta, we are reticent to present direct comparisons. (For example, the "new" Diavik pipe A-11 North had a count of six diamonds (macros plus micros) and 2.5 macros per 10 kg with a 0.72 macro-micro ratio: we expect grade and valuation figures in about a month.) Ashton's exploration approach using the reverse circulation drilling method has been to confirm targets as kimberlites (or not), and to determine an almost qualitative measure of how diamondiferous a pipe may be. Analysts do like to play with numbers, but it really is not all that appropriate at this stage: then again, the Company needs something to put in its press release! Ashton's release notes that of the 14 macros from K-11, the three largest stones observed were 1.1 x 1.2 x 0.8 mm, 1.7 x 1.5 x 1.0 mm and 1.3 x 1.1 x 0.8 mm. K-11's proximity to Highway 88 may allow a summer delineation and mini-bulk sampling program to be undertaken, depending on potential topographical constraints. As the kimberlite was encountered below only 13.4 m of overburden, a mini-bulk sampling program should not be difficult and the 500 m x 250 m magnetic expression of the pipe implies large tonnage potential. The two other pipes in this cluster K-92 and K-10, yielded three stones from 89.9 kg, and four stones from 99.1 kg. The 40 tonne mini-bulk sample from the K-91 pipe is now being processed in North Vancouver, and initial results are expected in June. A 10 tonne per hour dense media separation sample treatment plant has been ordered from Bateman Engineering and is expected to be operational in Q4/98. The 450 tonne bulk sample already taken from the K-14 kimberlite may be processed in this plant unless an alternate facility could treat the material earlier. Looking ahead, the caustic fusion analysis from the remaining "new" pipes (K-32, K-15 and K-93) is believed underway, the K-91 mini-bulk results should be seen in a month or so, and there potentially could be an active summer program on K-11. Ashton and Pure Gold (PUG : TSE) remain HOLDS.