ASHTON DISCOVERS NEW DIAMONDIFEROUS KIMBERLITE IN QUEBECadmin
Thursday, August 31st 2006
Collection of 50 and 100 tonne samples in progress on North Anomaly and Hibou dykes
Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. (”Ashton” or the ”Corporation”), is pleased to report early success from the Quebec summer exploration program with the discovery of a new diamondiferous dyke on the Foxtrot property. Additionally, the Southeast Anomaly dyke that was discovered during the winter 2006 has now been confirmed to be diamondiferous. These results bring to 14 the total number of diamond-bearing bodies that Ashton and its 50:50 joint venture partner, SOQUEM INC. (”SOQUEM”), have discovered thus far on the Foxtrot property.
The program currently underway on the property includes the collection of an estimated 50 tonnes from the North Anomaly dyke and a bulk sample of approximately 100 tonnes from the Hibou dyke. Concurrently, drilling continues on high priority geophysical targets associated with anomalous indicator mineral counts.
New Dyke Discovery
The new kimberlite dyke was discovered in outcrop earlier this summer by prospecting at the head of a train of kimberlitic cobbles and boulders, eight kilometres from the Renard cluster of kimberlitic bodies. Results from six holes subsequently drilled at three setups along a corresponding linear magnetic feature suggest that the dyke has at least a 900 metre north-south strike length and a shallow dip of approximately 11 to 25 degrees to the northeast. The maximum kimberlitic drill intersection to date is 1.5 metres. The dyke remains open to the north and south along strike and down-dip.
A 101.5 kg sample of surface boulders and a 94.0 kg sample of in situ dyke material were analyzed for diamonds by caustic dissolution at Ashton’s North Vancouver laboratory. The results of these analyses are presented in the table below.
Southeast Anomaly Dyke
As announced on April 26, 2006 the Southeast Anomaly dyke is situated approximately three kilometres southeast of Renard 3. The results from caustic dissolution analysis of a 31.4 kilogram sample of drill core at the Ashton laboratory have confirmed the dyke to be diamondiferous. These results, together with the results reported on April 26 for the sample of boulder material discovered nearby, are summarized in the following table.
The data derived from three holes drilled from the same setup suggests that the dyke has a true thickness of 1.5 metres. The boulder sample was collected approximately 240 metres northwest of the discovery collar. As the direction of glacial dispersion is interpreted to be from the north-northeast, the dyke does not appear to be the source of the boulders. The joint venture plans to conduct further investigation of the dyke and surrounding area through ground geophysical surveys, indicator mineral sampling, prospecting and drilling, to determine the width and strike length of the dyke and to locate additional bedrock sources.
North Anomaly Dyke ”“ 50 Tonne Mini-bulk Sample
The North Anomaly dyke, located five kilometres north of the Renard cluster, has been exposed by trenching along a strike length of 13 metres. The joint venture plans to collect a 50 tonne sample of kimberlite from this site. Approximately 20 tonnes will be shipped to the Ashton laboratory for diamond recovery during the fourth quarter. The remainder will be stored on site for processing at a later date.
Current drill data suggest that the North Anomaly dyke has an average thickness of approximately one metre and a minimum strike length of 490 metres. As announced on December 21, 2005, a sample of drill core weighing 56.5 kg returned a very high diamond count when analyzed by caustic dissolution. A total of 662 diamonds larger than 0.100 millimetres using a square mesh screen was recovered from this material.
Hibou Dyke ”“ 100 Tonne Bulk Sample
During the current program, the joint venture also plans to collect approximately 100 tonnes of kimberlite from the diamond-bearing Hibou dyke by trenching. As announced on January 16, 2006, a sample of boulders weighing 4.57 tonnes collected down-ice of the dyke was shown to have a diamond content of 63 carats per hundred tonnes
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 diamond laboratory facilities in North Vancouver.
SOQUEM INC. is a wholly owned subsidiary of the Sociã©tã© gã©nã©rale de financement du Quã©bec (”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.
For further information, please contact
Robert T. Boyd, President and CEO (604) 983-7750
Mike Westerlund Manager, Investor Relations (604) 983-7750