Ashton Mining of Canada Inc.

Ashton Mining of Canada Inc.

November 08, 2005 17:00 ET

Ashton Mining of Canada Inc.: Collection of Minimum 5,000 Carat Parcel Planned to Assist in Completing Pre-Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Ashton Mining of Canada Inc. (TSX:ACA) -

Results suggest more than 18 million carats may be present in Renard cluster, Quebec

Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. ("Ashton" or "the Corporation"), is pleased to announce that Ashton and its joint venture partner, SOQUEM INC., intend to recover a parcel of diamonds of at least 5,000 carats from a bulk sample of Renard 2, 3, 4 and 9 on the Foxtrot property in north-central Quebec. A combination of trenching, reverse circulation drilling and underground mining methods will be used to collect the bulk sample. The material will be processed through a dense media separation ("DMS") plant that will be acquired and then installed at the project site as soon as possible. The details and timelines of 2006 program activities will be confirmed once they are approved by the joint venture.

The joint venture is very encouraged by the continuing flow of promising results from the Renard cluster, including the increase in estimated tonnage and the potential carats contained in the four bodies that are reported below. Also encouraging is the initial modeled value of US$88 per carat reported on April 26, 2005 for a parcel of 459 carats of Renard diamonds. The joint venture considers the collection of a 5,000-carat parcel to be the next critical step to advance the project because the valuation of a parcel of this size will be required to complete a preliminary feasibility study of the project.

Estimated Tonnage and Diamond Potential - Renard 2, 3, 4 and 9

The drilling data derived to date from Renard 2, 3, 4 and 9, when combined with assumptions about the shape of the bodies at depth, suggest that these bodies may contain 23.2 to 27.5 million tonnes of kimberlitic material. As summarized in the table below, using the estimated diamond content of the samples analyzed thus far, these bodies could potentially contain 18.6 to 22.0 million carats of diamonds.

Summary of Estimated Tonnage and Diamond Results - Renard 2, 3, 4
and 9

Estimated Tonnage DMS Results-May
(million tonnes)(Note 1) 2004 to Present
------------------------ ---------------
est Estim-
Drill ated Estim-
Inter- Diamond ated
section Weight Content Number
(metres of Sample of
Kimber- below Drill- Projected Sample (cpht) Carats
litic sur- Indic- --------- (ton- (Note (mill-
Body face) ated Low High Total nes) 2) ions)
Renard 2 565 6.5 3.4 5.9 9.9 to 173 92 9.1 to
12.4 11.4
Renard 3 360 1.7 0.3 0.4 2.0 to 160 124 2.5 to
2.1 2.6
Renard 4 302 6.1 1.6 2.9 7.7 to 178 46 3.5 to
9.0 4.1
Renard 9 364 3.2 0.4 0.8 3.6 to 12.2 97 3.5 to
4.0 3.9
Totals 17.5 5.7 10 23.2 to 18.6 to
27.5 22.0
Note 1: Tonnage estimated by Wardrop Engineering Inc.
Note 2: "cpht" means number of carats per hundred tonnes, diamonds
larger than 1.18 mm using a square mesh screen.

The estimated tonnage of Renard 2, 3, 4 and 9 and the estimated number of carats contained in these bodies are conceptual in nature, and do not conform to the definition of a "mineral resource" established by National Instrument 43-101. The drill-indicated tonnage reflects the drill spacing by assuming an area of influence of five to ten metres around each drill hole. The projected tonnage, which is presented as a range, was determined by projecting the walls of the four bodies to their respective maximum kimberlitic intersection depths. The high estimate of the projected tonnage was determined assuming near-vertical walls, and the low estimate was determined assuming that the walls taper inward at a greater inclination from vertical. In both cases, any non-kimberlitic drill intersections were taken into account. The number of carats was calculated by multiplying the average diamond content of the samples collected thus far from each body by the estimated tonnage of the body. The results derived from these calculations may not accurately reflect the total number of carats that the four bodies contain because: (i) the estimated tonnage does not constitute a mineral resource; (ii) further exploration will not necessarily provide the basis for determining a mineral resource; and (iii) the diamond content of the samples collected to date may not be representative of the overall diamond content of these bodies given a number of factors including the location of the drill holes and the small size of the samples. The joint venture anticipates that the data generated during the collection of a large bulk sample should significantly enhance the level of confidence in the estimated tonnage and diamond content of the four bodies.

Foxtrot Property Exploration

The discovery of the Hibou dyke and the other kimberlitic dykes reported on October 13 reinforces the exploration potential of the Foxtrot property. The 2006 program will include further assessment of the Lynx and Hibou dyke systems, each of which is strategically located near the Renard bodies. This is expected to include an investigation of their potential tonnage. In addition the joint venture will continue to focus on the investigation of unexplained indicator mineral anomalies and kimberlitic boulder occurrences and the testing of geophysical targets on the property to identify new kimberlitic bodies. Further details of the exploration activities planned for 2006 on the Foxtrot property will be announced following approval of the program by the joint venture.

Ashton Mining of Canada Inc. and SOQUEM INC.

Ashton's prime objective is the discovery or acquisition of diamond prospects capable of rapid advancement to development and production. The Corporation is recognized as one of the leading explorers in the Canadian diamond industry. Ashton's competitive advantages include the significant exploration experience of its key personnel as well as its extensive in-house laboratory facilities in North Vancouver, dedicated exclusively to the Corporation's exploration projects.

SOQUEM INC. is a wholly owned subsidiary of the Societe generale de financement du Quebec ("SGF"). The mission of the SGF, an industrial and financial holding company, is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Quebec.

Ashton is the operator of the joint venture's exploration programs. Brooke Clements, Professional Geologist and Ashton's Vice President Exploration, is a Qualified Person pursuant to National Instrument 43-101. Mr. Clements is responsible for the design and conduct of the Corporation's exploration programs and for the verification and quality assurance of analytical results.

Contact Information

  • Ashton Mining of Canada Inc.
    Robert T. Boyd
    President and CEO
    (604) 983-7750
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Manager, Investor Relations
    (604) 983-7750