First off, congratulations to the team at Arctic Star Exploration Corp. With the recently completed Spring 2021 drilling program they not only found 4 new kimberlites at the Diagras Property, NWT, but more importantly the drill results announced today show a diamond count of 224 stones in 292.6 kg of drill core from 2 holes at the Sequoia kimberlite complex. What makes this discovery all the more interesting is Diagras´ proximity to the producing diamond mines Diavik and Ekati.
According to the paper "Sampling and estimation of diamond content in kimberlite based on microdiamonds" (2014): "At discovery an anomaly must be confirmed as kimberlitic and diamondiferous." Therefore, today´s results have now officially confirmed Arctic Star to have made a discovery! Today´s results warrant more drilling at Sequoia as different parts ("domains") of a kimberlite may host different kinds of grades as the earlier mentioned paper explains:
"A kimberlite deposit may be composed of material deposited by more than one volcanic event forming multiple families of kimberlite in the deposit. Kimberlite within a deposit may display different geological characteristics containing different diamond assortments, described as different kimberlite facies. The research is based on the premise that a deposit is composed of different domains, each having unique lithology and diamond content characteristics. Diamond content and value are consistently assessed by domain, whether it is a litho-facies or a subdivision of a lithofacies...
The accuracy of the geological model becomes critical if some domains in the pipe are financially marginal while others are highly economical for mining..
From the outset the idea is to identify all geological domains in the deposit. Each domain is individually evaluated for compilation of the overall deposit value. Some domains could be diamondiferous but uneconomical when considered in isolation, but economically viable when considered with respect to neighbouring domains. A deposit may become economically viable on the basis of the value of only one of its domains or it may remain non-viable simply because of the problematic location of higher valued domains."
Having found diamonds in the first drill holes is a great success. Now, more work is needed at Sequoia to possibly find more diamond-bearing domains within the kimberlite complex and establish a geological model. Drill results from 3 additional kimberlites, found during the Spring 2021 drilling program, are pending and expected to be released over the next weeks.
Arctic Star´s management team will be discussing the diamond discovery at Sequoia in a live online event tomorrow, Wednesday at 10 am PST. Join this event to find out why today´s announced discovery is significant, and why Arctic Star now has good reasons to be hopeful to make more diamond discoveries with the pending drill results from 3 additional kimberlites. Click here to register for tomorrow´s event.
Recording of the Q&A session with Pat Power and Buddy Doyle:
Today´s full press-release:
Diamonds Confirmed at the Sequoia Kimberlite Complex, Arctic Reports First Laboratory Results, Diagras Project, NWT, Canada
• Sequoia kimberlite complex is diamond bearing
• The results are encouraging, the company prepares for a follow-up drill program on untested sectors of this large, approximately 1km long, kimberlite complex
July 6th, 2021 – Vancouver, British Columbia – Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) (TSXV:ADD) (Frankfurt:82A2) (WKN:A2DFY5) (OTC:ASDZF) is pleased to announce it has received the first diamond results from its Spring drilling program where 5 new kimberlites were discovered. The first results are from the Sequoia kimberlite complex and are described below in table 1.
Table 1. Caustic Fusion Results, Sequoia Kimberlite
Notes on the results: The kimberlite was sent to SRC laboratories of Saskatoon by chain of custody. SRC is an independent laboratory that is SCC accredited, ISO/IEC 17025. The samples are assayed using the caustic fusion process, where up to 8-kilogram samples are fused in a kiln containing caustic soda at temperatures of >500oC. The hot residue is then poured through sieves and the remaining material is then chemically treated to reduce the residue to a manageable size. The residues are then observed and the diamonds are recovered. The lab adds unique diamonds to each sample which are recovered as part of a quality assurance program.
The Spring drilling program was designed to discover as many new kimberlites as possible within the given time and budget. The idea was to tag the kimberlite with one or two drill holes and return to them for further work if diamonds were present. Arctic Star has successfully shown the existence of the large kimberlite complex at Sequoia and we now know that it is significantly diamond bearing. Further work is therefore warranted.
Notable from table 1 is the contrasting diamond counts between drill holes 04 and 05. Drill hole DG2021-04 has almost twice the diamond count of 05, indicating variable diamond grades within this large kimberlite complex. Figure 1 shows the location of the two drill holes, with a background of the gravity anomaly thought to map the complex. The two holes were drilled 220m apart into contrasting parts of the complex.
The lab has given descriptions of a dozen of the larger diamonds. They are all reported to be white in colour. The majority, 75%, are described as clear, the rest are described as off white or cloudy. It is too early to say much about the quality of the diamonds. What can be said is that it is more encouraging to have clear white stones than to have the majority of the diamonds described as boart. There are no brown or boart stones noted from these samples. The Quality of diamonds is usually determined from a large sample of commercial sized stones gathered in a bulk sample. This is a task for the future.
Patrick Power, President of the company said, “These results showing that the Sequoia kimberlite complex is diamond bearing, in particular the high diamond counts from Drill Hole DG-2021-04, are very encouraging. On this basis, the company will present to the JV a Summer/Fall 2021 exploration budget with plans a return to the field and drill test this target further. These plans would be modified to include testing other kimberlites if we get further encouraging diamond results.”
The next step would be to drill test all the sectors of the Sequoia kimberlite complex with several drill holes to understand the geology and diamond distribution. Figure 1 shows areas that need to be tested with orange brackets. This would allow for further focus (more drilling for tonnage and bulk samples for grade and price) on the higher diamond count portions of the complex in the future, if warranted. Ideally, each 15 million tonne portion of the complex would need 2-3 holes into it, before garnering an initial understanding of the geology and diamond distribution.
Figure 1. Location of the Spring 2021 Sequoia complex drill hole, the background is a colour grid of the ground Gravity data (0.1milligal contours), Black dots are the gravity stations. Blue lines outline lakes. Orange brackets highlight sizable tracks of the complex that require testing by drill holes.
Helicopter supported drilling at the Sequoia target is possible most times of the year (Nov-Jan not recommended due to darkness, limiting aviation), as parts occur on land or can be drilled from the shore using angled holes and could commence on financing. The target is only 6.2 kilometers from the exploration camp.
The Diagras project is a Joint Venture between Arctic Star and Margaret Lake Diamonds Inc. (“DIA”). Arctic Star took over management of the Diagras project this year and proposed a $2.1 million “spring 2021” budget to drill geophysical targets on the property. At the end of this budget period, July 31st, 2021, the ownership will be approximately 80% Arctic Star, 20% DIA. A new “Summer/Fall” budget which will include further drilling at Sequoia, will be discussed within the JV in July.
The caustic fusion diamond results from the other kimberlites discovered are awaited and are expected in the next 3-6 weeks.
Join Pat Power, Buddy Doyle & the Arctic Star Exploration team on July 7th @ 10 AM PT as they discuss the recent diamond results found at the Diagras project in Lac de Gras. RSVP here: .https://event.zimtu.com/arcticstar/
The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist with over 35 years of experience in diamond exploration, discovery, and evaluation. A Qualified Person under the provisions of the National Instrument 43-101.
About Arctic Star
Arctic Star is predominantly a diamond explorer, recently discovering 5 new kimberlites in the prolific Lac De Gras kimberlite field that supports 2 multi billion dollar kimberlite mining complexes. The company also has a 958Ha Exploration permit containing several diamond bearing kimberlites on its Timantti project, Kuusamo Finland. Arctic Star has optioned its Stien diamond project in Nunavut to GGL diamonds who plan work once Covid restrictions lift. The company continues to look for appropriate diamond opportunities elsewhere.
ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR EXPLORATION CORP.
Patrick Power, President & CEO
+1 (604) 218-8772
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary Statement Regarding “Forward-Looking” Information: This news release contains “forward-looking statements” including but not limited to statements with respect to Arctic Star’s plans, the estimation of a mineral resource and the success of exploration activities. In this release it is not certain if the kimberlite discovered will be economic or not as this depends on many factors. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could affect our plans include our potential inability to raise funds as intended, and in such event we may require all funds raised, if any, to be used for working capital rather than the intended uses as outlined. Accordingly, readers should not place undue reliance on forward‐looking statements. Arctic Star undertakes no obligation or responsibility to update forward‐looking statements, except as required by law.
Arctic Star Exploration Corp.
1111 West Georgia Street
Vancouver, B.C. V6E 4M3, Canada
Phone: +1 604 689 1799
Shares Issued & Outstanding: 118,091,751
Canadian Symbol (TSX.V): ADD
Current Price: $0.16 CAD (07/06/2021)
Market Capitalization: $19 Million CAD
German Symbol / WKN (Tradegate): 82A2 / A2PV9M
Current Price: €0.132 EUR (07/05/2021)
Market Capitalization: €16 Million EUR
Stephan Bogner (Dipl. Kfm., FH)
8260 Stein am Rhein, Switzerland
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research, Zimtu Capital Corp., and Arctic Star Exploration Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Arctic Star Exploration Corp.’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Arctic Star Exploration Corp.´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in Arctic Star Exploration Corp. and is being paid by Zimtu Capital Corp., which company also holds a long position in Arctic Star Exploration Corp., whereas the featured company Arctic Star Exploration Corp. pays Zimtu Capital Corp. for the preparation, publication and additional distribution of this report. The cover image has been obtained from Giphy.com