Ashton Mining of Canada Inc.
TSX : ACA

Ashton Mining of Canada Inc.

August 11, 2005 17:00 ET

Ashton Mining of Canada Inc.: New Diamond-Bearing Boulders Discovered in Quebec

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 11, 2005) - Ashton Mining of Canada Inc. (TSX:ACA) -

Exploration target drilling scheduled for late August

Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. ("Ashton" or "the Corporation") is pleased to announce that Ashton and its 50:50 joint venture partner, SOQUEM INC. ("SOQUEM"), have discovered four new areas of kimberlitic boulders on the Foxtrot property in north-central Quebec. Several of the boulders have an estimated weight of up to one tonne and a number of them measure as much as one metre across.

The joint venture believes that these boulders, located at sites between the Renard cluster and the Lynx dyke system, represent new kimberlitic sources that are not explained by known discoveries. The current interpretation is that the boulders are close to their in-situ source. The joint venture will be targeting the discovery of their bedrock origins during the exploration drill program commencing in late August.

A 100 kg sample of these boulders was analyzed by caustic dissolution at Ashton's North Vancouver laboratory. The results presented in the table below show that the sample is highly diamondiferous.



Caustic Dissolution Results - 100 kg Boulder Sample
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Number of Diamonds According to Sieve Size Fraction (mm)
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+0.100 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850 +1.18 Total
-0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.18 -1.70
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94 81 51 39 7 3 3 1 279
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These results are comparable to those reported on May 26, 2005 for caustic dissolution analysis of drill core samples collected from the Lynx dyke system that highlight the potential of Lynx to host a population of commercial-size diamonds. The joint venture is strongly encouraged by the discovery of these new boulders and by the initial diamond results.

As shown on the map that is available at www.ashton.ca/projects_quebec_location_maps.html, the newly discovered boulders were found in four separate areas situated at distances of 0.7 to 1.7 kilometres west of the Renard cluster. A brief video presentation showing the recovery of the boulders can be viewed on the multi-media section of Ashton's website at http://www.ashton.ca/investor_presentation.html.

Exploration Update

The summer fieldwork completed to date on the Foxtrot property includes extensive indicator mineral sampling, geophysical surveys, prospecting and bedrock mapping. The on-going analysis of the resulting data will assist the joint venture in prioritizing potential targets for the exploration drilling program that will begin in late August.

In addition to the diamondiferous boulders described above, kimberlitic float was also discovered in three other areas of the Foxtrot property during the summer field season:

- several boulders were located approximately 20 kilometres from the Renard
cluster coincident with an indicator mineral anomaly and an associated
geophysical anomaly currently under investigation;

- a 200 kg boulder was recovered from the Southeast Anomaly area located three
kilometres southeast of Renard 3; and

- one boulder was recovered one kilometre south of the southern limit of the
Lynx South dyke system previously established by drilling.

The discovery of this boulder near Lynx South highlights the potential for this dyke system to have a strike length that exceeds the 3.7 kilometres that has been indicated by drilling to date. Several large diamonds, including one weighing 5.6 carats, have been recovered from kimberlitic boulders discovered along this feature.

An excavator will be mobilized on August 15 as part of the planned recovery of an estimated 30 tonnes of kimberlitic dyke material by trenching at three or more locations along 1.9 kilometres of the strike length of the Lynx dyke system. The sample material will be processed for diamonds by dense media separation at Ashton's North Vancouver laboratory to assist in the estimation of the average diamond content and frequency of larger diamonds for this dyke system.

Renard Cluster Update

The summer drilling of a number of the known Renard bodies is now largely complete. This work included the mini-bulk sampling of Renard 4, 7 and 8, and the drilling of Renard 2, 7, 8, 9 and 10 to determine the extent of the additional tonnage that these bodies may contain. The diamond results and a summary of updated tonnage information are expected to be announced before the end of the third quarter. These results will play an important role in the evaluation of potential mining scenarios for the Renard cluster, planned for completion later this year. The results from this study will assist in determining the next steps for the project, which could include the collection of a larger bulk sample in 2006 to refine the current estimate of the value of the Renard diamonds by recovering a parcel that contains a greater number of large stones.

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.
    Robert T. Boyd
    President and CEO
    (604) 983-7750
    or
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Investor Relations
    (604) 983-7750
    contact@ashton.ca
    www.ashton.ca