Ashton Mining of Canada Inc.

Ashton Mining of Canada Inc.

June 27, 2005 17:00 ET

Ashton Mining of Canada Inc.: Second Renard 9 Mini-Bulk Sample Returns 101 cpht

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 27, 2005) - Ashton Mining of Canada Inc. (TSX:ACA) -

Includes a 3.58 carat colourless diamond

Ashton Mining of Canada Inc. ("Ashton" or "the Corporation") is pleased to report another strong diamond result from the Foxtrot property in north-central Quebec. A 6.18 tonne sample from the Renard 9 kimberlitic body has returned an estimated diamond content of 101 carats per hundred tonnes ("cpht") and a 3.58 carat colourless crystal. Ashton and its 50:50 joint venture partner, SOQUEM INC. ("SOQUEM") collected the sample by core drilling during the winter 2005 field program.

"Today's excellent diamond result is consistent with our earlier Renard 9 result and reinforces our opinion that the Foxtrot property is one of the most promising exploration-stage diamond projects in Canada," said Robert Boyd, Ashton's President and CEO. "We have now recovered two diamonds greater than three carats from only 12 tonnes of material. This is very encouraging and suggests that Renard 9 could host a significant population of large diamonds. We are also confident that the current tonnage estimate of 2.4 million tonnes for this body can be increased significantly with further drilling."

Diamond Results

The 6.18 tonne sample was collected by drilling one near-vertical and eight inclined holes during the 2005 winter field program. The kimberlitic material was processed by dense media separation ("DMS") at Ashton's North Vancouver laboratory. The sample returned 6.24 carats of diamonds including a 3.58 carat colourless composite tetrahexahedroidal crystal. The estimated diamond content for the cumulative 12.2 tonnes of material collected to date from Renard 9 is 97 cpht. A photo of the 3.58 carat diamond is available on Ashton's website at:

Cumulative DMS Diamond Results from Renard 9
Weight of
Diamonds Estimated
Sample Recovered Diamond Largest
Weight (carats) Content Diamonds
Date Reported (tonnes) (Note 1) (cpht) (carats)
June 27, 2005 6.18 6.24 101 3.58 and 0.20
March 3, 2005 6.04 5.56 92 3.26 and 0.68
Total 12.2 11.8 97
Note 1- All diamonds recovered are larger than 1.18 mm using a square
mesh screen

The total diamond content of 97 cpht may not be representative of the overall diamond content of Renard 9 due to a number of factors, including the location of the drill holes, the small size of the samples and the recovery of 3.58 carat and 3.26 carat diamonds from the two samples. The exclusion of these two large diamonds would reduce the total estimated diamond content of these samples to 41 cpht.

Background Information

Located 50 metres south of Renard 4, Renard 9 has an interpreted horizontal width that varies between 25 and 60 metres and a strike length of 160 metres. As reported on May 9, the drill-indicated tonnage of this body is 2.4 million tonnes. Renard 9 is one of six kimberlitic bodies in the 50 hectare "Core Area" of the Renard cluster. Five of these bodies, Renard 2, 3, 4, 65 and 9, currently have an aggregate drill-indicated tonnage of 22.4 million tonnes. Samples from these bodies have also returned strong diamond results. As reported on April 26, the modeled value of US$88 per carat established for diamonds from Renard 2, 3, 4 and 65 exceeds the current average world price for rough diamonds.

Next Steps

As reported on June 16, the joint venture plans to conduct further drilling on Renard 2, 7, 8, 9 and 10 this summer to better define the tonnage potential of these bodies. Other work planned for the Foxtrot property this summer includes the collection of mini-bulk samples from Renard 4, Renard 8 and the Lynx dyke system. At least seven indicator mineral anomalies will also be investigated in an attempt to find new kimberlitic bodies. The summer program is part of the joint venture's $13 million 2005 Quebec Exploration Program.

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
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Manager, Investor Relations
    (604) 983-7750
    (604) 987-7107 (FAX)