Ashton Mining of Canada Inc.
TSX : ACA

Ashton Mining of Canada Inc.

May 26, 2005 17:00 ET

Ashton Mining of Canada Inc.: Drilling and Diamond Results Strengthen Potential of Lynx Dyke System

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 26, 2005) - Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. (TSX:ACA) ("Ashton"), is pleased to announce new drilling and diamond results for the Foxtrot property in north-central Quebec generated by Ashton and its 50:50 joint venture partner, SOQUEM INC. ("SOQUEM") during the current year. The results include six new intersections of kimberlitic material along the 3.7 kilometre Lynx dyke system, one of which demonstrates the potential for significant down-dip extension of the system. In addition, diamonds have now been recovered by caustic dissolution analysis of samples of dyke material collected by drilling in 2003 and 2004.

Intersections of dyke material with an average cumulative thickness of 1.9 metres along two kilometres of strike length have now been identified as a result of the 2003, 2004 and 2005 programs. As reported earlier, samples of kimberlitic boulders collected within the same areas have returned very encouraging diamond results.

The cumulative results from the Lynx dyke system strengthen its potential to enhance an economic evaluation of the Renard Core Area. Located two kilometres east, the 50 hectare Renard Core Area contains six diamondiferous kimberlitic bodies. Five of these bodies, Renard 2, 3, 4, 65 and 9, contain an estimated 22.4 million tonnes of kimberlitic material. Samples from these bodies have returned diamond results ranging from 22 to 124 carats per hundred tonnes ("cpht"). As reported on April 26, a modeled value of US$88 per carat has been determined for diamonds from Renard 2, 3, 4 and 65.

Lynx Dyke System

The Lynx Anomaly is a continuous 4.5 kilometre wide area characterized by the presence of kimberlitic boulders and anomalous concentrations of indicator minerals; a map can be found on Ashton's website at http://www.ashton.ca/projects_quebec_lynx_map.html.

The Lynx dyke system lies within the Lynx Anomaly and consists of a 3.7 kilometre long zone of continuous or semi-continuous kimberlitic dykes having a north-northwest-strike. The system is open along strike to the north and south as well as at depth. For ease of reference, the Lynx Anomaly and its associated dyke system are described as Lynx North, Lynx and Lynx South.

During the winter program, six holes in total were drilled at Lynx North, Lynx and Lynx South. Intersections of kimberlitic material having average true widths of 0.8, 1.7 and 2.5 metres were encountered within zones of country rock and kimberlitic dykes having an average width of 1.5, 2.3 and 3.3 metres, respectively. The widest intersections were recorded at Lynx and Lynx South.

Caustic Dissolution Results

The table below presents the results of caustic dissolution analysis of drill core samples collected in 2003 and 2004 from the Lynx dyke system. The analysis was conducted at Ashton's North Vancouver laboratory.

Caustic Dissolution Diamond Results - Lynx Dyke System



Number of Diamonds According
to Sieve Size Fraction (mm)
---------------------------------
Location Weight of
of Sample +0.100 +0.150 +0.212 +0.300
Sample (kg) -0.150 -0.212 -0.300 -0.425
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Lynx South 96.5 168 89 36 24
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Lynx North 25.0 17 19 12 11
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Lynx 27.0 9 8 5 1
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Total 148.5 194 116 53 36
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Number of Diamonds According
to Sieve Size Fraction (mm)
---------------------------------
Location Weight of
of Sample +0.425 +0.600 +0.850 +1.18
Sample (kg) -0.600 - 0.850 -1.18 -1.70 Total
---------------------------------------------------------------------
Lynx South 96.5 13 5 4 0 339
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Lynx North 25.0 4 0 0 1 64
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Lynx 27.0 2 1 0 0 26
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Total 148.5 19 6 4 1 429
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These data are consistent with caustic dissolution results from kimberlitic boulders collected from Lynx and Lynx North and reported on April 21, 2004.

Lynx and Lynx South

Of particular significance are the cumulative results from Lynx and Lynx South where 23 holes drilled over a two-kilometre strike length have resulted in intersections of kimberlitic dyke material with an average true thickness of 1.9 metres. These intersections are situated within a zone of country rock and kimberlitic dykes that has an average thickness of 2.4 metres. The thickest intersection was a single dyke with a width of 2.9 metres while the thinnest kimberlitic intersection had a cumulative width of 0.9 metres in a 2.2 metre-wide zone. The predominant interpreted dips of the kimberlitic dykes are 20 degrees and 45 degrees along this two-kilometre strike length. At one location, the dyke system has now been shown to extend at least 250 metres down-dip from its projected surface expression. The results from a cumulative 8.47 tonne sample of kimberlitic boulders collected from Lynx in 2003 and from Lynx South in 2004 demonstrate the significant potential of the Lynx dyke system to host high-grade material and commercial-sized diamonds. As reported on March 22, 2005, this sample returned 16.43 carats of diamonds, including a 5.7 carat diamond from Lynx South, giving the 8.47 tonnes an estimated diamond content of 194 cpht.

Additional drilling and sampling are required to confirm the average width, dip, lateral and down-dip extent and diamond content of the Lynx dyke system. Moreover, as presently interpreted, the Lynx dyke system does not explain other occurrences of kimberlitic float and indicator minerals within the Lynx Anomaly. To continue the evaluation of the Lynx Anomaly, the joint venture is considering further work that could include the collection of kimberlitic material for diamond analysis by surface trenching, more drilling of the known dyke system and the drilling of other geophysical targets.

Renard Cluster Exploration

During the winter program, a new zone of kimberlitic dykes with associated country rock breccia was discovered between Renard 7 and 10 approximately one kilometre north of the Renard Core Area. Two inclined holes returned cumulative actual intersections of 9.3 and 2.5 metres of kimberlitic material within zones of kimberlitic dykes and country rock measuring 27.7 and 11.9 metres in width, respectively. Results from caustic dissolution analysis of drill core are expected in the third quarter and could lead to further drilling. In addition, a kimberlitic dyke measuring approximately 0.3 metres was intersected 500 metres west of Renard 4 during the winter program.

Other Exploration

The winter program also included the drilling of eight other targets on the Foxtrot property and four geophysical anomalies on the Monts Otish property that coincide with unexplained indicator minerals. No kimberlitic material was recovered as a result of this drilling.

The joint venture anticipates an increase in the number of potential drill targets on the Foxtrot property for the summer field season upon completing the interpretation of airborne geophysical survey data generated during the winter field season and the analysis of the remaining indicator mineral samples collected in 2004.

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 is a wholly owned subsidiary of SGF Mineral inc., a 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 responsible for their design and conduct, and for the verification and quality assurance of analytical results.

Contact Information

  • Ashton Mining of Canada Inc.
    Brooke Clements
    Vice President, Exploration
    (604) 983-7750
    or
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Manager, Investor Relations
    (604) 983-7750
    (604) 987-7107 (FAX)
    contact@ashton.ca
    http://www.ashton.ca