..
 . . . a girl's best
friend
Bob Moriarty
July 7, 2003
On Thursday
June 26th, Ashton Mining
of Canada (ACA-T)
issued a remarkable press release. Literally, they discovered
a 4
carat diamond
in a drill core. The stock blasted from $1.12 (Canadian) a share
the day before the startling announcement to $2.69 a week later
adding $78 million dollars to their market cap.
I got a call on Tuesday of this week from Dennis Higgs, President
and CEO of Miranda
Gold
(MAD-V) advising me of the incredible find. Miranda has property
surrounded by diamond giants being in between Ashton on the west
and DeBeers on the east of their largest property.
Investors in
diamond explorers make gold investors look like calm little old
ladies. Diamond investors seem to invest far more enthuastically
in response to large diamonds than to positive bulk samples.
In 1994, the
very first large Canadian diamond was found by Aber Resources (ABZ-T) when they were logging drill
core from their first hole. It weighed a remarkable (for the
time) 1.75 carats. With another smaller but still visible .25
carat stone, the discovery added a rapid $70 million (Canadian)
to Aber's market cap. But when further mini-bulk samples revealed
a remarkable and profitable 4 carats total per ton, punters ignored
the news.
Earlier this
year, Kensington Resources
(KRT-T) found a 10.23 carat diamond in a mini-bulk sample following
discovery of a 3.35 carat diamond last year from the same pipe. Investors rocketed
the stock from about $.70 a share in May to $1.70 before drifting
down to almost $1 a share after release of the mini-bulk sample
showed marginal results.
 In any case, the Ashton
find has revitalized interest in the Otish Mountain diamond play.
Miranda Gold is considering alternatives from doing a joint venture
on their property adjoining Ashton's find to initiating an airborne
survey and drilling under Quebec's miner friendly government
reimbursement program which refunds 30% of all exploration costs
in Quebec. A flow through financing is also an option Dennis
Higgs is considering.
Bob Moriarty
Archives
eMail
Jul 5, 2003
links:
Miranda Gold
Ashton
Mining of Canada
Aber Resources
Kensington
Resources
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