This joint venture project has three partners : Ashton Mining of Canada Inc, Alberta Energy Company Ltd and Pure Gold Minerals Inc. These partners have undertaken a reconnaissance programme of the Alberta projects at an estimated to cost of C$7.4 million in 1999. The programme began in January 1999 with ground geophysical surveys focussed on corroborating new targets prior to the commencement of the 1999 winter drilling programme. Ground geo-physical programme continued until the end of March.

It is in the course of this programme that six new kimberlites have been discovered. Presents of diamonds in these new kimberlites is yet to be ascertained by drilling and sampling. Kimberlites BH 155, BH 225, BH 229 and BH 230 were discoveredunder the over burden of 34, 30, 74 and 39 metres respectively on the Buffalo Hills Property.

The other two kimberlites LL 07 and BM 16 are located in other areas. Drillings from these kimberlites was started in February 1999 and samples of minerals taken out have been sent to AMC's North Vancouver laboratory for microdiamond analysis. The results are being processed.

It might be interesting to note that this big kimberlite cluster was discovered almost accidentally when the Alberta Energy Company which was exploring there for gas and oil suddenly hit upon some kimberlites.This led to location of 10 kimberlites in 1997. Many more kimberlites were located there in 1998 taking their number to 26 by the end of 1998. Recently six more kimberlites have been identified in the first quarter of 1999.Pure Gold Minerals and Ashton Mining of Canada joined this venture.

Kimberlite K-14, one of the initial discoveries in 1997 returned encouraging microdiamond and mini-bulk sampling results prompting the collectionof a bulk sample in early 1998.

Nearly 479 tonnes of mineral that was processed in October last yielded 56.45 carats of diamonds larger than 1.2 millimetres, providing an effective grade of 11.78 carats per 100 tonnes. This indicates that K-14 may be unlikely to support an economically viable mining operation and no further work is planned on that kimberlite.

Two other kimberlites were also evaluated in 1998. Of them, K-91 yielded 4.56 carats of diamonds greater than 0.8 milli-metres. This indicated a content of 12.7 carats per 100 tonnes. K-11 sample has indicated a grade of 4.39 carats per 100 tonnes. These grades are, however not considered economically viable. No further sampling of these kimberlites is to be taken up now.

Although none of the pipes tested so far appear to have economic potential, AMCI remains encouraged by the high number of diamond ferrous kimberlites and presence of commercial size stones. It is therefore going ahead with the programme of further identification of kimberlites andas well as drill testing various anomalies to explore fully the potential of this new kimberlite province.