Coppermine (May 26/03) - A major diamond exploration player in Nunavut keeps finding kimberlites in the Kitikmeot, but nothing that looks like a mine yet, the company reports.

Vancouver-based Ashton Mining last week announced yet another new discovery in the Coronation Gulf district.

The Caltha kimberlite, intersected during cold-weather drilling at the Ric property, is the seventh kimberlite Ashton has discovered in the region.

Five are diamond-bearing and rank in the "top five per cent of kimberlite grades worldwide," said president Robert Boyd.

But none close to the breakthrough the company has been looking for, he said.

Ashton has been at the forefront of exploration in the region for the past three years.

Boyd said between his firm and other players in the Kitikmeot -- including De Beers and Kennecott -- 17 kimberlites have been discovered and 11 are diamond-bearing.

"That is a pretty good ratio for a new district that is emerging."

The company has completed mini-bulk sampling on two kimberlites from its Kikerk property.

A 5.83 tonne sample from Potentilla returned 22 carats per hundred tonnes and yielded a .34 carat diamond.

Boyd said while promising that doesn't approach development potential.

"That would be economically tough anywhere in Canada, but especially in the North where development costs are so high."

Results disappointing

Boyd said results from the two kimberlites bulk-sampled "are probably not sufficient to warrant us pursuing them further at this point.

"We may come back to them in the future."

The company is now turning its focus to Northern Quebec, where it may have the find it has been hoping for.

Results from mini-bulk sampling on its Renard property show grades "between 65 and 134 carats per hundred tonnes."

That compares favourably with Ekati at the same stage, said Boyd.

"The kimberlite we have processed has yielded a .92 and a .96 carat diamond already, so we are off to a good start there."

The results drew investor interest almost immediately.

Ashton last week announced a $6 million public offering and QIT-Fer et Titane Inc. -- a member of the Rio Tinto group -- quickly stepped to the plate with $3 million.

The giant Rio Tinto group owns 62 per cent of Ashton Mining shares.

Focus on the South

Boyd said the Quebec results have inevitably turned the company's focus to the South.

"Last year at this time it was in Nunavut. But we have made dramatic progress in Quebec and it is going to focus our attention."

The company plans to gradually step up exploration and take "larger and larger" samples from the region.

An 18 tonne sample from winter drilling has yet to be analyzed.

Ashton has about 250,000 hectares staked in Nunavut and 380,000 hectares in northern Quebec.

Boyd said the Coronation Gulf will require results similar to Renard to rekindle the glow of two years ago.

"You need to find grades in that range to raise the profile of the project and the region."

He said Ashton will persevere with its exploration program in the Coronation Gulf, however.

The company is spending about $2.5 million this year, primarily on ground geophysics and sampling for mineral indicators.

The new Caltha kimberlite is "keeping it interesting," he said.

"The suggestion is it might be bigger than just a dike. We don't know yet, but it could be up to 100 metres in diameter."