June 26th, Ashton Mining
of Canada (ACA-T)
issued a remarkable press release. Literally, they discovered
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.
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.
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