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Burnstone Ventures (formerly Pure Diamonds) was one of the initial participants in the Buffalo Hills diamond exploration project, the third largest district of diamond bearing kimberlite in Canada and was instrumental in bringing Ashton Mining Canada into this project with EnCana, one of Canada's premier oil and gas companies. Over the past 10 years over $30 million has been spent on exploration of the Buffalo Hills Project resulting in the discovery of 38 kimberlites of which 26 are diamondiferous.
Through the August 2006 Agreement between the Joint Venture partners, Burnstone Ventures (formerly Pure Diamonds) will continue to pursue the Buffalo Hills Project, initially through the direct efforts of Ashton and subsequently as a working interest owner. Under the terms of the agreement, Ashton must spend $15 million before April 2010 including at least $2 million by December 2007, after which Burnstone Ventures (formerly Pure Diamonds) would retain a 6% working interest. Ashton intends to focus on delineation and bulk sampling of selected kimberlite pipes with the size and diamond content that with bulk sampling could justify further development and evaluate by diamond drilling other targets that have been defined by ongoing interpretation of the geophysical and geological data. The agreement allows Burnstone Ventures (formerly Pure Diamonds) to continue to maintain a working interest through a significant expenditure by Ashton, which should result in an advancement of the project, while focusing its direct efforts on the High Arctic Joint Venture with De Beers.
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