Ashton Mining of Canada Inc -
Ashton sinks to lowest level since 1996
Ashton Mining of Canada Inc ACA
Shares issued 29,230,665 1999-04-13 close $0.9
Tuesday Apr 13 1999
ALBERTA DIAMONDS PIONEER HAS EYE ON NW TERRITORIES
by Stockwatch Business Reporter
Ashton Mining of Canada closed on Tuesday at 90 cents on the Toronto Stock Exchange, down four cents from Monday on a volume of 37,800 shares. Intraday, the stock traded as low as 88 cents.
The last time Ashton closed at 90 cents was Dec. 31, 1996, four weeks before the company intersected kimberlite at Buffalo Hills in north-central Alberta. The discovery kicked off an area play that peaked in May 1997, when Ashton reached an all-time high of $8.05. A dampened resource market combined with a lack of investor-pleasing discoveries ensured that by the end of 1998, many believed the play was dead and buried.
Canaccord Capital analyst David James says the market continues to demand earth-shaking discoveries, or at least substantial evidence that Alberta is capable of producing economic quantities of diamonds. Buyers, he says, will return with enthusiasm should that evidence be presented. "My position on Alberta is the market will react to good news," Mr. James says. Until that time, he adds, buyers will probably continue to give the play a miss.
Mr. James says Ashton will likely release the next batch of results in about a month, part of its winter drilling program that was budgeted at $7.4-million. Ashton, the operator, is partnered with Alberta Energy (45 per cent each) and Pure Gold Minerals (10 per cent) in the search. Mr. James says that 1999 for Ashton "will tell the tale as far as budgets are concerned," adding that the company has its eye on possibly kinder fields beyond Alberta. "They haven't forgotten about the Northwest Territories but they don't have an imminent drilling program set up there."
Indeed, the Northwest Territories is the focus of intense exploration activity. Participants include Winspear, Mountain Province, SouthernEra, Aber, Tahera, and the Ascot-Major General program on Victoria Island.
The Canaccord analyst expresses respect for Ashton's Alberta exploration program headed by president John Auston and exploration vice-president Wayne Hillier. "We have a lot of respect for those guys," he says.
John Kaiser, author of the Bottom-Fishing Report, remains faithful to the Alberta diamond play. Mr. Kaiser picked Ashton in December 1996 at 96 cents and rerecommended it as a top-priority buy in December 1998 at $1.10.
Even the California stock picker's patience has been tried, however. His 1998 list of 100 stocks included 11 Alberta plays, but 1999's was down to six; an additional stock, Birch Mountain Resources, now mainly on the hunt for gold in Alberta shale, has only a tenuous connection with the diamond play through some claims under option to the predecessors of Tahera Corp., Lytton and New Indigo, since January 1998. Tahera, meanwhile, is now more interested in Northwest Territories diamonds.
In December, Mr. Kaiser may have thought that things could hardly get worse for the play's participants. Although his overall portfolio of 100 stocks has done well -- it is up 17.75 per cent since Dec. 11 -- his Alberta diamond picks continued their depressing slide into 1999.
For instance, the somnambulent Abaddon Resources closed on Tuesday at 11 cents, down from Mr. Kaiser's recommended price of 15 cents. Abaddon signalled a change of direction in March when it picked up a property in Quebec.
Mount Hope closed on Tuesday at 16 cents, up marginally from Mr. Kaiser's recommended price of 15 cents. The stock, however, has not traded since April 8. Mount Hope may also be signalling a shift away from Alberta with a property deal at Lac Rocher, Que., in February. That move came despite the discovery last year of good indicator minerals at its two million acre Haro River prospect in Alberta.
New Blue Ribbon, which has stayed faithful to the play, closed on Tuesday at 15 cents, down from Mr. Kaiser's buy price of 28 cents. New Blue Ribbon's areas of diamond focus are the Pelican Mountain claims near Calling Lake and its Cox property (joint ventured with New Claymore Resources), both in Northern Alberta.
Alberta stalward New Claymore closed on Tuesday at 25 cents, down from the recommended price of 55 cents. New Claymore's main area of interest is Panny River, in the Buffalo Head region.
Troymin Resources, recommended in December at 30 cents, closed on Tuesday at 18 cents. Troymin's partner Monopros finished a winter program in February and terminated the joint venture. In March, Troymin acquired claims in Lac Rocher.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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