Project, Finland (100%-owned);
advancing the recent discovery of
a cluster of diamondiferous kimberlites with
large upside / world-class potential.
Experienced management, and skilled
technical leadership; taking point
for Arctic Star Exploration Corp. are
the same individuals that as lead
exploration geologists discovered the Diavik diamond mine in Canada, and the
Grib diamond mine in Russia.
Valuation Commentary:Arctic Star Exploration Corp. (TSX-V: ADD) (F: 82A1) (US
Listing: ASDZF) is a Canadian-based diamond exploration mining
company focused on advancing its flagship 100%-owned Timantti
Property in Finland, located 17 km from the town of
Kuusamo, and only ~450 km SE of the multi-billion dollar
Grib diamond mines in Russia.
'Timantti' is the Finnish word for diamond, and Arctic
Star is now in the center of what could continue into a Tier 1 discovery.
The large land package consists of a 243 hectare Exploration Permit and a
193,700 hectares Exploration Reservation. The caliber of the
exploration professionals that are associating themselves and
reputations to the project is impressive, they include the
former lead geologists that discovered Diavik diamond mine in
Canada, and the discovered nearby Grib diamond mine in Russia.
Arctic Star has already proved-up
three diamondiferous kimberlite bodies within the
Exploration permit, named White, Black and Grey Wolf, respectively,
and three kimberlite dykes. Following caustic fusion processing 1,746
diamonds were found in 987.06kg of samples from four kimberlites,
and curve analysis yields +1.18mm stones in each kimberlite. Three
of the kimberlites, known as 'the three wolves', are within 300
metres of each other, they were found under only 1 to 3 metres of
overburden, only a few hundred metres off the highway, and adjacent
to power. Analysis of the distribution
from caustic fusion of samples from Arctic Star's best grading kimberlite
structure, named the White Wolf, yielded ~0.7 carats/T (+/- ~20%) commercial
stones, an earmark of if not a future mine on its own,
certainly part of a future mine. The Company's 2019 exploration plan
is to prove the Timantti Project has world-class size potential by
confirming more kimberlites; the exploration team will be testing
several near-surface anomalous targets that are so apparently
indicative it is difficult to think what else the anomalies could be
other than more kimberlite bodies/pipes.
Figure 1. (below)
a)(left) -- Location of new kimberlites on Arctic Star's
Location map, note same geological belt as Grib & Lomonosov
Exceptional infrastructure: Arctic Star
is able to explore for diamonds at Timantti for ~1/3 the cost of
what most others spend in elsewhere due to the projects location
proximal to exceptional infrastructure (roads, airport, town,
power). There are regular flights from Helsinki to the local town of
Kuusamo (population ~16,000); its possible to take a taxi from the airport to Arctic
Star's first kimberlite discovery in ~20 minutes. Additionally
noteworthy, in 2018 two of the kimberlites were discovered simply by
excavating anomalies with a backhoe.
Arctic Star Begins 2019 Kimberlite
Exploration Program: (see related April 3, 2019 news release
here)The 2019 exploration program is designed to locate
further kimberlite discoveries. Kimberlite is volcanic rock which
hosts diamonds and predominantly occurs in groupings averaging a
minimum of 30 pipes. There is considerable evidence that there are
further kimberlites within the company’s exploration area as till
sampling shows a distribution of diamond indicator minerals pointing
to additional sources. Also, over thirty magnetic anomalies that may
represent kimberlites have been identified and prioritized within a
3km radius of the Wolf kimberlites. Initially the exploration work
will consist of ground magnetic surveys over the priority targets,
followed by trenching over the anomalies using an excavator. Arctic
Star was successful in locating kimberlite using these methods in
2018, and there is every reason to expect this success can be
continued in 2019. Kimberlite that does occur in the trenches will
be sent for caustic fusion to determine micro-diamond content.
Results of the excavation program will be disclosed as information
on the testing of targets becomes available. Kimberlites with
significant diamonds will be slated for diamond drill testing to
determine size, and promising magnetic anomalies that could not be
trenched due to till depth will also be drill tested later in 2019.
Once Arctic Star has determined that most of the kimberlites in this
new field have been tested for microdiamond content, the company
plans to conduct bulk sampling on the most promising diamondiferous
kimberlites, which will better define the grade and give a view of
the average price of the commercial size stones.
ADD.V poised for upside revaluation:
Currently trading with a miniscule market cap of only ~C$7.8 million, the share
price of Arctic Star Exploration Corp. is apt to rise near-term to
better reflect the inherent value of its recently discovered
diamantiferous kimberlite clusters at the Timantti Property and its
potential. The missing ingredient that is holding the share price of
ADD.V back is the streets need to see size/tonnage potential,
something the Company's geological exploration team is confident it
can deliver this 2019. The markets are tougher on diamond
exploration stocks now than in the past
due in-part to the fact there has not been a new
world-class diamond discovery made since 1990. If this was the 1990s
and Arctic Star had done what it has done lately at Timantti, the
share price of ADD.V would likely be over $3/share already.
Purchasers of ADD.V now are getting a deal on shares. Kimberlite
structures are rare -- the discoveries to date have mitigated the
project risk, with weak hands now out of the stock, and the
geological team dialed-in, it won't take much in terms of news flow
to attract majors, serious money, and street attention that will
jump the share price of ADD.V as the 2019 exploration season
Figure 2. (above) Diavik Mine, and Arctic
Star's VP of Exploration, Buddy Doyle, he was
lead geologist on the Diavik discovery.
Diavik has produced over 100 million carats
since 2003. Diavik is operated by Rio Tinto and
sold 40% to the Washington Group for $1.2B.
exploration team is aiming to hit a home run this
Arctic Star's exploration team is lead by Buddy
Doyle (VP of Exploration and Director) -- Buddy Doyle was the
lead exploration geologist that took the
Diavik Mine in Canada from discovery through to ribbon cutting.
He then stayed on for a term at Diavik during operations as the
Senior Exploration Geologist, serving a total of 23 years with
RioTinto. He also has other multi-billion dollar discoveries of
significance under his belt as well, see his CV at the bottom of
Also taking point as Country Manager in Finland
for Arctic Star is exploration geologist Roy Spencer (Director). Roy
Spencer was the leader of the team that discovered the nearby Grib
Diamond Mine across the boarder in Russia, which is in the same
geological setting as Arctic Star's Timantti diamond project.
Figure 3. (above)
Grib Mine and Roy Spencer. Otkritie Industrial Investments
purchased Grib for 1.45B. AGD Diamonds recently consolidated with
Two recent interviews of Artic Star Exploration Corp.
President and CEO Patrick Power
Noteworthy insight from above
interviews on the 100%-owned flagship Timantti Diamond Project in
Arctic Star's Timantti Property is
part of the Karelian Craton, same as the Grib Diamond Mine in
One of Arctic Star’s Directors and
head of the program is Roy Spencer, he is responsible for having
discovered the Grib Diamond Mine and is looking to replicate
that success now at Timanti.
There are excellent mineral trains
leading into Arctic Star’s ground. The chemistry of the Timanti
property is similar to Grib.
Arctic Star is able to explore for
diamonds at Timantti for less than what most others spend
elsewhere due to the projects location proximal to exceptional
infrastructure (roads, airport, town, power). It is possible to
take a taxi from the airport to Arctic Star's first kimberlite
discovery in ~20 minutes. Additionally noteworthy, is that
kimberlite bodies have been discovered simply by excavating
anomalies with a backhoe.
Current program has ADD excavating
kimberlite targets. Any targets will be followed up with
drilling to delineate and have core that can undergo caustic
year’s fusion program, which was only 409 Kg, which is kind of
akin to a little coffee table in size, produced 1300 diamonds,
and some of those were commercial size – which was exciting,
because it was a very small sample. The diamond curves for White
Wolf in particular are very good and its not about discovery
anymore -- it’s about building tonnage. So, we’re really at a
really critical point, this program could produce new
kimberlites that can give us tonnage – we have a minimum tonnage
we can move forward at, so we’re getting close to that."
The Spring breakup is expected to result in
Arctic Star excavating kimberlite targets in the last week of
May. Unique to the Timantti Diamond Project is the ability of
Arctic Star to discover kimberlites with the use of backhoe, as
targets are near surface under nominal overburden.
Indicators run high
for additional new kimberlite discoveries at Timantti
Kimberlites are likely to occur in fields
(a.k.a. clusters), which typically contain 30 or more separate
kimbelites. The Wolf kimberlites are just the first discoveries in a
more extensive cluster.
The 2018 works program involved ground
geophysics (magnetic, gravity, and EM surveys), excavator till
sampling (20 Samples ~50lbsm, and they drilled ~600m yielding 4
diamond bearing kimberlites.
Figure 4. (above) --
Imagery from 2018 exploration program.
Figure 5. a & b (above) -- location of three
wolves and synopsis of drilling which has Arctic Star has conducted.
The Three Wolves kimberlites discovered by
Arctic Star are not classic Kimberlite pipes. They were initially
drilled in the middle assuming they were classical pipes, however the
current interpretation is they are part of a dyke, sill system,
relatively thick 30m to 35m wide dipping to the North @ 35 degrees.
There is evidence this sill system continues and Arctic Star has an
opportunity to build kimberlite tonnage at the Wolves, similar to
how tonnage was built at Snap Lake, but here Arctic Star has a much
thicker sill system.
Figure 6. (above) -- White Wolf 2018 diamond
stones in the commercial size: Caustic fusion of White
Wolf's kimberlite generated excellent results. Caustic fusion is a
process whereby the kimberlite is split, half is kept for reference,
and the rest is sent to the lab (there are only 3 in the world; two
in Canada and one in South Africa). At the lab the kimberlite is
dissolved in extremely hot caustic soda leaving only diamonds
remaining. The distribution of microdiamonds in the sample can be
plotted and the dots form a curve from which a bi-polynomial
expression projects the curve into a large diamond space. This is a
technique Buddy Doyle used at Diavik with great success. Analysis
shows White Wolf is yielding
~0.7 carats/T commercial stones (+/- 20% to 25% -- this
number will become better refined as a larger sample size is
processed). It is too early to tell diamond prices as a statistical
cloud size is needed, however Arctic Star has 60% white stones in
the microdiamonds (anything above 30% is good).
Figure 7. (above) -- Grey Wolf, Black Wolf,
and Vasa Dykes 2018 diamond results
Highly prospective for additional diamond discovery of significance
The indicators being
found can't be explained by the discoveries so far, there is
obviously lots more kimberlite to be discovered, and Arctic Star's
geological team knows exactly where to look.
Figure 8. a & b (above) Left: Annotated location
map of Arctic Star's Timantti Land Package, Right: Sample sites with
indicators. Historic public data and recent till samples taken
by Arctic Star show a clear dispersion trains of diamond indicator
minerals east of Kuusamo. The Known Kimberlites discovered to date
can not explain all the indicator minerals, proof that there are
more kimberlites to be found. Red Dots, are sample sites. Red
Circles show samples with positive results, the larger the circle the
more indicators in the sample.
Timantti - New Targets
Figure 9. a & b (above) New targets -- Left
(above): Annotated UAV Mag survey; Arctic completed a 600 km2
UAV magnetic survey in the Summer-2018, adding to its Winter ground
Mag. Greenstones belts and gabbro sills dominate the image as long
linear Mag highs. Seen in the image are some of the new targets
highlighted with arrows, those are kimberlite targets. Kimberlite
targets in the quartzites tend to stand out.
Right (above): Annotated survey showing
nanoteslas (nT). 38 New untested drill targets for 2019. Red
arrows point to the top priority targets. As little as 1-3 m
overburden. The Wolves seem to form an East-West trend (Wolf Cubs).
The plan is to begin excavator sampling in March 2019, drill testing
in June 2019.
level runs high: One
section of the survey shows a trending line of anomalies that appear
similar in structure that typify kimberlite. The anomalies continue
for another 1.5 km. Elsewhere Arctic Star has intense anomalies in
the 1000s of nT, then there are anomalies in the 100s of nT that are
key, likely very quartzite -- the targets Arctic Star is going for
are along the Wolf trend and they are sort of circular, 100m wide,
Lac De Gras/Diavik-style sort of targets in the quartzites. It begs
the question "What else would intrude the quartzite and be 100 nT?"
-- the logical answer is kimberlite (nothing else makes sense).
Figure 10. (above) -- Mag filter designed to
highlight kimberlite like targets. Boxes highlight targets in
new Exploration permit (note: one of the targets is ~200m across,
looks dumbbell shaped, which kimberlite often looks like). Blue
arrows show targets in current permit.
Chart 1. (Above) -- Global supply peaked
in 2006 with 176 million carats mined -- a level that will probably
never be exceeded again -- before falling sharply through the global
financial crisis. Since then it’s edged consistently higher amid a
steady stream of new projects. Now, few new mines are scheduled, and
some of the industry’s old workhorses are set to close early in the
next decade. Two Separate Reports see Diamond Market Flipping to
Deficit in 2021: Entering April-2019 Berenberg Bank analysts
said "Rough diamond prices will remain flat for the next two years,
followed by a nominal gain (sub-1%) in 2021. ... Prices for rough
diamonds will start to improve in 2021-2022", said Berenberg’s
Richard Hatch. Also entering April-2019 Analyst Kieron Hodgson of
Panmure said "there may be a deficit of 15 million carats, or about
10 percent of global supply, in 2021."
Chart 2. (above)
Zimnisky Global Rough Diamond Price Index. Commentary: Gains
made in early 2018 have been lost in the later part of that year,
stabilizing now. Most of the price pressure is in the 'small good',
less than 3 pointers (0.3 carats). Mainly due to producers
reprocessing old tailings where smalls dominate, therefore short
lived. USA & China demand strong.
Shortfall in global new rough diamond supply
growing; The above annotated chart of
World Diamond Production Forecast shows a growing shortfall.
The world consumes 127 million
carats of rough diamonds per year. That’s equivalent to
the reserve of a medium size diamond mine per year (127
million carats is ~ the original reserve of the Diavik
Mine -- the world consumes a Diavik Mine every year).
The problem facing the industry supply chain now is that
there is no new supply being discovered and mines are
Argyle diamond mine is
scheduled to close 2020.
Udachnya and Mir diamond mines
have recently closed (Mir cannot go underground due
to natural gas seepage into mine).
Very little global diamond
exploration since the 2008 GFC.
No new significant discovery
Note on synthetic (artificial)
diamond market: The artificial
market is being relegated to junk status and not
impinging on natural market.
Demand for synthetic diamond
production in 2018 was ~7M carats. Compare that to
natural demand (of ~130M carats), as a portion of the
market synthetics is small. Synthetics have been around
for a while, however they have gotten better of late.
Debeers and the Geological Institute of America have
deployed detection instruments in every reputable
jewelry store in the the world -- so you can tell the
difference. In order to speed the departure of the
artificial market piggybacking off of the natural
market, and relegate it to a separate market, in
November 2018 DeBeers began producing their own
synthetics on their own patented equipment/process, and
they are pricing way low -- making a separate market.
Simply look to rubies, emeralds, and sapphires -- they
have had very good synthetics since the 70s and they are
separate markets (one can go into a lapidary store and
buy a thumb-size artificial ruby for $70, whereas a
thumb-size natural ruby would be $multi-millions).
Diamond Pipeline - Producers have the highest profit
Figure 12. (above) Diamond
Pipeline (source of data:
Bain & Company) -- The table shows where the money
goes between mining and getting a very nice ingot. The
big takeaway from a review of margin data is that its a
producers club; diamonds are one of the only mined
commodities where producers set the price, not the
buyers. Diamonds are not industrial driven like most
other mined commodities. Large stock piles have been
gone since the mid-90s. Occasionally the producers will
ring up each other "We are going to hold back on X-size
group, we are seeing weak prices", and those diamonds
will get stored at the mine site. This is a healthy
mechanism for the producers as it would be irresponsible
to flood the market. If one or two sites hold back on
supply of a size, the price comes back.
Exploration Steps to Production
It is a quantum leap to do the bulk
sample, so Arctic Star wants to bring as much selection
of kimberlite to that quantum leap before it makes it.
Figure 13. (above) Exploration
Steps to Production -- Arctic Star is currently at
the 'diamond' phase of the above illustration, before
bulk sample. Since they know there are more kimberlites
they can prove up, they want to find them and bring them
all to the diamond phase. Doing a bulk sample on several
sources of material is much more economic and mitigates
risk. A decent bulk sample would involve producing
1,000s of carats and cost a few million. The plan is to
get ~400 kg from each kimberlite discovery (150 - 400 kg
of microdiamonds), line them up and see which are the
best and bulk sample 4 or 5 of them all at once. Once
Arctic Star has done that they are almost at
prefeasibility study. Unlike finding gold, which can be
nebulous, a geologist can easily identify kimberlite and
the tonnage can be calculated quickly. Because each
stone has its own price, each kimberlite is unique, so a
fairly big fingerprint of diamonds is needed in order to
know the average price of the diamond per carat before
an economic study can be performed.
Overview of other projects of Arctic Star,
advancing by Joint Venture with others.
Diagras Project, NWT Canada
-- 40% owned by ADD.V
The Diagras Property (a.k.a. Dia-Gras) consists of
29 contiguous claims staked by Arctic Star, with an area of 25,595
hectares. The property is in joint venture with Margaret Lake Diamonds
whereby Margaret Lake has earned a 60% interest. The property is located
in the north-eastern part of the prolific Lac de Gras kimberlite field,
22km NNE of the Diavik diamond mine and 36km east of the Ekati diamond
mine in NWT Canada. The Company has verified through research and
compilation that the property hosts over a dozen kimberlites, most of
them diamondiferous. Arctic Star’s research and compilation of
historical data in the public domain confirms that Diagras is a property
of merit that deserves additional exploration.
Figure 14. (above) -- Location map. Arctic
Star's Diagras Property is located just above Diavik (currently operated
by Rio Tinto and sold 40% to the Washington Group for $1.2B.). Diavik
has produced over 100 million carats of diamonds since 2003. Arctic Star
& Margret Lake is using new gravity and EM geophysical surveys to find
new potential kimberlites.
Noteworthy quotes from
aforementioned April-2019 interview on the 40%-owned Diagras Property, NWT, Canada
[share URL of videohttps://youtu.be/0iJYdUMnWdc
"It’s a Buddy
project -- Buddy Doyle, who was the leader of the team that found
Diavik. … We are ~17 km away from
Diavik and ~27 km away from Ekati. And the premise here is; Buddy
back in 1998 had hit 101 kimberlites in that Lac de Gras field. So
probably the number one person who had more experience finding these
things. He took 20 of his pipes that were all mag-low targets and
did a bigger grid, ran gravity, ran EM, and found extensions and
different pipes. … He found 7 new
bodies that were not magnetic, they were either EM or gravity or
both, but not magnetic. The real interesting fact about that is
every grade from those new pipes were better than the original mag-low.
Mag is destructive to diamond preservation, so if you don’t have it,
such as A154 – Diavik’s pipe, it was not magnetic – it was EM and a
gravity signature, and it turned out to be 4.5 carats per tonne. So
there are a lot of good pedigree in that area, we are in the
Corridor of Hope, and our plan is to develop an ore body quickly and
then sell it to one of the mines. They are burning low on ore. They
have ~ 5 – 7 years left, as we’ve been told, and we’ve chatted with
those groups and they are very interested in what we are doing. I
think that might be a quick turnaround for our shareholders in
Figure 15. (above) -- The Diagras Property
contains 13 known kimberlites discovered by DeBeers with Mag in the
1990's. Arctic Star is now targeting non-magnetics using new and
improved gravity technology. In the image above
Green Diamonds are kimberlites.
Blue Diamonds are Kimberlites with mine
plans that have Greater than 1ct/t.
Mag Survey 2017
Figure 16. (above) -- Mag Survey from 2017 on
Diagras. Yellow Dots (De Beers), Red Dots (Majescor) previous drill
Figure 17. (above) -- Gravity Survey from 2017
on Diagras. Gravity surveys show contrasts of Pyroclastic Kimberlite
and kimberlite breccia revealing rock that is less dense than the
surrounding country rock.
Jack Pine Kimberlite
Figure 17. (above) -- Synopsis of the Jack Pine
Kimberlite on Dia-Gras Property.
Figure 18. (above) -- Suzanne Kimberlite is
assumed to be a magnetic low, (blue arrow). Ground Geophysical surveys
conducted in spring 2017. A second drill target has been discovered
showing a separated gravity low, and linear Em anomaly coincident with a
break in a Diabase dyke.
Figure 19. (above) Diagras HLO2 Kimberlite.
Two drill holes where previously drilled into a magnetic low shown by
the red arrow.
Figure 20. (above) Diagras HLO2 Kimberlite.
Kimberlite was intersected. The EM anomaly shown above and located on
the magnetic image by the black arrow, seems to break a Diabase dyke.
Excerpt from recent (May 6,
2019) news release from Arctic Star regarding its Diagras Property:
Arctic Star Exploration Corp. Completes
Spring Exploration Program at Diagras
Property, Northwest Territories, Canada
May 6, 2019 – Vancouver, British Columbia –
Arctic Star Exploration Corp. (“Arctic
Star” or the “Company”) is pleased to
announce that its Spring exploration program
has been successfully completed at its 40%
owned Diagras Property (“Diagras” or the
“Property”) located in the Northwest
Territories, Canada. Diagras totals 22,595
Hectares within 31 mineral claims with a
total of 23 known kimberlites. The data from
this ground geophysical program has been
received and interpreted by our technical
team and they report the work has generated
compelling drill targets.
The exploration program consisted of ground
Gravity, Magnetic and Electromagnetic (EM)
surveys focused around historically
identified kimberlites as well as other
airborne geophysical anomalies with
kimberlite like signatures.
Margret Lake Diamonds Inc is a contributing
Joint Venture (the “Joint Venture”) between
the Company, which acts as project operator
and holds a 60% interest, and Arctic Star
Exploration Corp. (TSX.V: ADD) which holds a
40% interest. Diagras is located in the
prolific Lac de Gras diamond field,
Northwest Territories, Canada just 35 km
from the world-class Diavik diamond mine.
The Property lies directly on trend with the
Diavik deposits currently being mined by a
joint venture between Rio Tinto and Dominion
Detailed, modern ground geophysical
techniques are being employed to define
possible additional kimberlite(s) or
kimberlite phases not identified by previous
explorers, who did not utilize all these
techniques. This exploration approach has
been successful elsewhere with recent
examples including the discoveries of
additional diamondiferous kimberlite at the
Kelvin and Faraday kimberlite complex (Kennady
North project adjacent to the Gahcho Kue’
Diamond Mine). Investors are cautioned that
mineral deposits on adjacent properties are
not indicative of mineral deposits on
The work has been funded in part by
significant grants from the Government of
the Northwest Territories (GNWT) Mining
Incentive Program (MIP). The Company would
like to thank the GNWT for their support and
recognition of the potential for this
quality exploration program, the funding is
limited and only granted to those projects
judged most likely to bring benefit to the
NWT. Our companies are grateful for their
The Joint Venture has conducted ground
geophysical work over three spring seasons
and now has enough drill targets to justify
drill mobilization, planned for spring 2020.
The Diagras project has an active Class ‘A’
Land Use Permit which includes drilling. The
permit is good until December 2022 and has
the ability for extension.
Table 1 Summary of 2019 Work and Drill
Penelope (aka DG007)
Below is a review of some of the more
promising targets generated from this work:
At the Black Spruce kimberlite,
Monopros (a subsidiary of De Beers)
discovered this kimberlite by drilling a
distinct magnetic low in the early 1990’s.
In the early 2000’s the property was
optioned to Majescor, which drilled the edge
of the magnetic kimberlite testing in part
the EM anomaly. Our work in 2017 shows a
series of gravity lows occur coincident and
adjacent to the south of the known magnetic
kimberlite phase. One of these gravity
anomalies clearly breaks and disturbs a
diabase dyke signature, which is a
characteristic similar to many known Lac de
Gras kimberlites. Results from this year,
2019, show a strong EM anomaly that is
partly separate and partly coincident with
the magnetic and gravity anomalies. The
simplest explanation is that each
geophysical signature, the Magnetic, the
gravity and the EM represent different
phases of the same kimberlite complex. Each
phase can have totally different diamond
grades and populations. The gravity and EM
anomalies require separate drill testing.
Three separate targets exist.
Figure 1. Ohm
Mapper results for the Black Spruce
Kimberlite. Colour image, EM data Magenta is
less resistive. Contours Gravity data.
0.1mgal contours. Dotted blue outlines
gravity targets, black outline magnetic
signature. Note that they overlap but don’t
coincide which may indicate separate
kimberlite phases. Dots are previous drill
holes targeting the magnetic anomaly. The
black dots Majescor holesAt the Jack Pine
kimberlite, which is one of the largest
kimberlite complexes in the Lac de Gras
diamond field (over 1.5km in its longest
dimension), the geophysical methods (ground
gravity, EM and magnetics) highlighted
obvious magnetic kimberlite phases drilled
by previous explorers while also
successfully defining a new kimberlite-like
geophysical expression believed to have not
yet been evaluated by drilling according to
available public domain records. Previous
drilling in the Jack Pine kimberlite complex
has demonstrated it is significantly diamond
At the Suzanne kimberlite, ground
geophysical work has revealed a magnetic low
anomaly, a gravity anomaly and a linear EM
anomaly interpreted to be over 600 meters in
length. Data in the public domain indicates
that only one drill hole tested this
kimberlite leaving potentially untested
kimberlite(s) and/or phases.
At the HL02 Kimberlite DeBeers drilled 2
long inclined holes one intersecting only a
few meters of hypabyssal type kimberlite at
the end of the hole. See Figure 2. It
appears from this work that there is an
untested gravity and EM target that breaks a
diabase dyke. This is a classic compelling
kimberlite drill target.
Figure 2. Top
left Ohm Mapper results for the HL-02
Kimberlite. Colour image, EM data Magenta is
less resistive. Contours Magnetic data.
Dotted outlines depict drill target, Top
Right Gravity Image, with Magnetic Contours,
and bottom Left Magnetic image with EM
At the Kong Kimberlite shown in figure three
is a double lobe magnetic anomaly drilled by
Monopros however our work shows a distinct
EM anomaly between the two lobes that has
not be tested which could represent a new
kimberlite or kimberlite phase.
Figure 3. Ohm
Mapper 50m depth slice Resistivity results
contours on the magnetic image for Kong East
and West Kimberlites.
At the Penelope Kimberlite target Figure 4
shows that there is an untested southern EM
anomaly that could be caused by an untested
Figure 4. Ohm
Mapper resistivity results 50m slice for the
Penelope kimberlites suggests there is an
untested kimberlite phase in the south.
Black lines and dots depict drilling by
The company still has kimberlites that have
not been covered by gravity and EM surveys,
including the known, Anne, Tabatha, Finlay,
Don, Drew, George, Emily, Don and Krista
kimberlites. Given the high target
generation success rate proven by our work
to date, these remain a priority. This work
can proceed at the same time as the planned
drill program. It is important to note that
the JV has obtained all the permits to
conduct this drill program.
The technical data in this news release has
been reviewed and approved by Buddy Doyle, a
diamond geologist with over 30 years of
experience, a Qualified Person under the
provisions of National Instrument 43-101.
About Arctic Star
The Company owns 100% of the recently
acquired Timantti Diamond Project including
a 1171 Ha Exploration Permit and a 193,700
Ha Exploration Reservation near the town of
Kuusamo, in Finland. The project is located
approximately 550km SW of the operating Grib
Diamond Mine in Russia. Arctic has commenced
its exploration in Finland on the Timantti
Project, where four diamondiferous
kimberlite bodies may represent the first
finds in a large kimberlite field. The
Company also controls diamond exploration
properties in Nunavut (Stein) and the NWT (Diagras
Arctic Star has a highly experienced diamond
exploration team previously responsible for
several world class diamond discoveries.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
The Stein property is located 85 km NW of Taloyoak,
Nunavut and consists of four adjoining prospecting permits covering an
area of 105,637 hectares on the Boothia Peninsula.
GGL Resources Corp. has the
option to earn into Arctic Star’s Stein Project up
to 60% by conducting ground geophysics on high
priority drill targets and discovering kimberlite by
drilling, trenching or in outcrops.
$1.5 mil of exploration
expenditures by previous explorers. Never drill
Kimberlitic indicator minerals
are showing high chrome, low calcium G10 pyrope
garnets were followed up-ice direction.
The current management team and board of directors has a well rounded
combination of people that each contribute expertise in
disciplines necessary for a successful mining entity:
Patrick Power, – CEO,
Mr. Power is a seasoned venture capitalist and financier
with over 20 years of experience as a stock market
professional and as director of public companies. Arctic
Star benefits from Mr. Power’s wealth of experience as a
savvy deal maker, an adept financier and as a
results-driven leader of dynamic public companies. The
company enjoys Mr. Power’s large network of contacts
within the industry, his enthusiasm and his efforts as a
member of the audit and remuneration panels.
Buddy Doyle, – VP of Exploration, Director
Mr. Doyle has 25 years experience in mineral
exploration. He worked for Rio Tinto PLC for over 23
years, most recently he was Exploration Manager/Vice
President of Kennecott Canada Exploration Inc. (owned by
Rio Tinto), in charge of diamond exploration in North
America. He was a key member of the Kennecott
Exploration Australia team that discovered the
multi-million ounce Minifie gold deposits at Lihir in
1987-1988 and led the team which discovered the Diavik
diamond deposits in 1994-1995. Few geologists have seen
2 projects from discovery through to decision to mine.
Mr. Doyle is recognized by his peers in the exploration
industry as an authority on diamond exploration and
kimberlite geology, and has authored/co-authored
numerous papers on these subjects. He was awarded the
2007 Hugo Dummitt Award for excellence in Diamond
exploration. Since leaving Rio Tinto Mr. Doyle remains
active in the diamond sector through consultancy and
non-executive directorships. Mr. Doyle brings to the
company a disciplined scientific approach to mineral
exploration and managerial skills that have a proven
track record. He holds a BSc in Applied Geology from the
Queensland University of Technology.
Roy Spencer, – Finland Country Manager and
Mr. Spencer is a GSSA Member and a Fellow of the AusIMM.
Roy joined De Beers in 1966 and has been involved with
exploration and deposit evaluation for gemstones and
other commodities throughout his career. Roy’s tertiary
education was at the University of Natal and Rhodes
University in South Africa, and is a member of the
Geological Society of South Africa and a Fellow of the
Aus.I.M.M. As technical director of Peregrine Diamonds,
he discovered the first kimberlites on the Pilbara
craton in Western Australia in 1989, and as Leader of
the Owners Team for Archangel Diamond Corporation he was
largely responsible for the discovery of the world class
Grib kimberlite in far northern Russia (February, 1996).
In 1998, Roy created and raised the seed finance for
Ilmari Exploration Oy to explore for gold, base metals
and diamonds on the Karelian Craton in Finland. Ilmari
went public in 2000, and discovered the Lentiira
kimberlite cluster in central Finland in 2003. In 2006,
as CEO of London-based diamond explorer European
Diamonds, Roy led the Owners Team which brought the
Liqhobong kimberlite (Lesotho) into commercial
production on time and under budget. In mid-2007, Roy
left European, a company which had evolved into a
successful mid-tier diamond producer and marketer after
having raised £23 million over a 6-year period. Since
that time Roy has continued in gemstone exploration and
deposit evaluation in Africa, Finland and western Russia
for a variety of junior and senior mining companies.
Thomas Yingling, – Director
Thomas Yingling is a successful seasoned venture
capitalist who benefits from over 19 years of experience
running resource based public companies. He has been a
Director of Arctic Star since its inception in 2002. Mr.
Yingling has served for almost two decades as President
of Brahma Communications Corp., an investment consulting
firm that specializes in corporate finance, investor
relations and strategic corporate planning for publicly
traded companies. He has served as President and CEO
and/or a director of other resource based public
Sean Charling, – Director
Mr. Charland is a seasoned communications professional
with experience in raising capital and marketing
resource exploration companies. He has helped raise over
C$ 150 million for a variety of venture listed and
private companies in mineral exploration and mining,
technological and health sectors with the majority of
the focus on mineral exploration and mining. His network
of contacts within the financial community extends
across North America and Europe.
Bill Ferreira, – Director
Mr. Ferreira is an exploration geologist with over 30
years experience in gold, base-metal and diamond
exploration in Canada. Mr. Ferreira holds a Master of
Science degree from the University of Manitoba and a
Bachelor of Science degree from the University of
Minnesota, Duluth. Mr. Ferreira’s employment experience
includes work for Noranda Exploration Canada, Esso
Minerals Canada, Getty Mines, Falconbridge Ltd., Granges
Exploration, Canmine Resources Corp. and San Gold Corp.
Mr. Ferreira is past president of the Manitoba
Prospectors and Developers Association. Mr. Ferreira is
currently a member of the Association of Professional
Engineers and Geoscientists of the Province of Manitoba.
Mr. Jassal brings over 20 years of accounting and
management experience to the Company. Mr. Jassal is a
member of Certified General Accountants in Canada,
fellow member of Association of Chartered Certified
Accountants in London, England and holds Certificate in
Accounting and Finance from Ryerson University Toronto.
Previously, Mr. Jassal has worked in various accounting
positions (including public companies) within the
manufacturing, IT and telecommunication sectors. Mr.
Jassal joined the Company in May 2006 and has been an
important member of the team working on the financial
and corporate side of the operations.
Note: This article is not intended to be a complete overview of
Arctic Star Exploration Corp. or a complete listing of Arctic Star's projects. Mining MarketWatch urges the reader to contact the subject company and has
identified the following sources for information:
For more information
contact Arctic Star Exploration Corp.'s head office at:
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Technical mining terms used by the writer may be used/expressed in simplified layman
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