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Feature article September 17, 2019:

 

Arctic Star Advancing Timantti Diamond Project in Finland

   

"Arctic Star is now in the center of what could continue into a Tier 1 diamond discovery at Timantti."

 

Arctic Star's 2019 Kimberlite Exploration Program in Finland is currently underway; Multiple backhoe trenchable kimberlite targets next to already discovered diamondiferous kimberlite bodies. This July 16, 2019 Arctic Star confirmed it has discovered more kimberlites, by excavator -- laboratory analysis is pending.

 

Arctic Star

Exploration Corp.

(TSX-V: ADD) (US Listing: ASDZF) (Frankfurt: 82A1)

 

Share data, Capitalization, & Corporate info

 

 Shares Outstanding:  ~130 million

 Fully Diluted:  ~176 million 

 Recently Traded: ~CDN$0.04/share (TSX-V: ADD)

 52 Week High/Low: $0.115/ 0.03

 Current Market Capitalization: ~$5 million Canadian

 Corporate Website: www.arcticstar.ca

 

  • Timantti 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.

Click here to view recent site visit report on Timantti Diamond Project in Finland published July 3, 2019.

 

   

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 producing Lomonsov and 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 of microdiamonds 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 Timantti,

b)(right) -- Location map, note same geological belt as Grib & Lomonosov mines.

 

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.

 

EXPLORATION UPDATE: This July 16, 2019 Arctic Star confirmed it has discovered more kimberlites, by excavator -- The geological firm GTK has confirmed the presence of garnets and pseudomorphs of olivine in samples from the new kimberlites. These new kimberlites appear similar in colour and makeup to ADD.V's diamondiferous Wolf kimberlites. Laboratory analysis is pending.

 

MAJOR SHARE PRICE CATALYST POTENTIAL: The two new kimberlites are located near where the Company had Vasa kimberlite dyke discoveries a year or so earlier, near where the Company had registered one of the best chemistry samples that the geological team had ever taken anywhere in the world. The Vasa dyke did NOT match the strong chemical sample, which is good as such a chemical signature should have yielded much more robust diamond count, THE WORKING THEORY IS THESE TWO NEW KIMBERLITE ARE THE SOURCE. The two new kimberlites, given the ice direction, are dead in front of the aforementioned sample. Right now Arctic Star has samples of both of those new kimberlite in the lab, doing mineral work on it, and if it matches up with the aforementioned exceptional sample, which is only ~100 m sitting in front of the two new kimberlites – look for fireworks under the share price of ADD.V as it will reflect extremely well for diamonds.

 

ADD.V poised for upside revaluation: Currently trading with a miniscule market cap of only ~C$5 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 advances.

 

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.

Arctic Star's exploration team is aiming to hit a home run this 2019:

 

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 this article.
 

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 Otkritie .

  

Two recent interviews of Artic Star Exploration Corp. President and CEO Patrick Power

April 2019

 

Above: April 2019 Interview video, [share URL https://youtu.be/0iJYdUMnWdc ]

 

May 2019

 

Above: May 2019 Interview video, [share URL https://youtu.be/BVoOd45uPvk ]

 

Noteworthy insight from above interviews on the 100%-owned flagship Timantti Diamond Project in Finland:

  • Arctic Star's Timantti Property is part of the Karelian Craton, same as the Grib Diamond Mine in Russia.

  • 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 fusion.

  • Quote: "Last 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 results.

 

Gem quality 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 7a. (above) -- Grey Wolf, Black Wolf, and Vasa Dykes 2018 diamond results

 

 

Figure 7b. (above) Sample kimberlite from recent site visit (full site visit can be see here): Associated commentary "A fairly large pyrope-garnet crystal in kimberlite matrix found near surface at the Grey Wolf Kimberlite during the site-visit. Olivine is a common mineral in the earth‘s subsurface and the primary component of the earth‘s upper mantle some 150 km below surface, where diamonds also originate from. Olivines and diamonds are carried from the upper mantle toward the surface by the kimberlite magma, finally erupting as small volcanoes whose remnants are referred to as kimberlite pipes. The back side of the kimberlite sample shown above included a pyrope-garnet. As you can see in the above picture, there are not only plenty of olivine crystals in the kimberlite but also pretty big ones, which is an indication that diamonds with similar sizes may be present, scattered throughout the kimberlite body. Consequently, diamond explorers must do bulk sampling of many hundreds to thousands of tons of kimberlite to get an indication of the diamond size distribution within the kimberlite body."

 

Highly prospective for additional diamond discovery of significance at Timantti:

 

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.

 

The certainly 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.

 

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Exploration Update details

 

The following is excerpt copy of July 16, 2019 news release of exploration update from Arctic Star:

 

Arctic Discovers More Kimberlites, By Excavator, Timanti Project, Finland

 

July 16th, 2019 – Vancouver, British Columbia – Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) is pleased to announce that recent trenching work by excavator on its Timantti project, Finland, has resulted in the discovery of two new kimberlites.
 

These kimberlites occur near the Vasa dykes also discovered by Arctic Star by excavator in 2018 and located 2 kilometres north of the Wolf (Black, Grey and White Wolf) kimberlites.
 

The recent excavator has exposed 2 new heavily weathered clayey kimberlite bodies both less than 1.5 metres from the land surface in a heavily forested area. The bodies are located approximately 140 metres (named the “Plug”) and 450 metres (named “Karhu”) respectively west of the 2018 Vasa dyke discoveries and do not appear to be physically connected to these dykes. The Karhu (“bear” in Finnish) discovery has been confirmed as kimberlitic by the GTK (Geological Survey of Finland) scientists in Helsinki whom the company has engaged to assist in the exploration programme. Final confirmation of the Plug body awaits GTK confirmation and laboratory analysis.
 

The Karhu body comprises yellowish coloured clayey kimberlite (yellow ground) and had previously been identified as a target in the detailed ground magnetic surveys undertaken by the company’s geophysical consultants. This yellow ground is very similar to that encountered at the Wolf Pack bodies to the south. The GTK scientists have confirmed the presence of garnets and pseudomorphs of olivine in the sample.
 

The yellow clayey material recovered from the Plug body appears to be identical to that found at Karhu and the company geologists are confident this is also a new kimberlite discovery.
 

This phase of the trenching programme has involved the digging of a total of 7 individual trenches covering approximately 400 metres of excavations. A total of 17 samples have been collected from these trenches, 2 from the Karhu and Plug bodies, and a further 15 from other clay rich zones also discovered in the trenches. All 17 samples will be sent to a local laboratory for detailed geochemical analysis. These samples are in transit to Helsinki.
 

These discoveries occur “up ice” of an anomalous till sample that contains numerous indicator minerals where electron micro-probe results have indicated high potential for diamondiferous source rocks up-ice. The chemistry of the indicator minerals extracted from the diamondiferous 2018 Vasa Dyke discoveries did not match the chemistry of this till anomaly and the source of the high-quality indicator minerals remained to be discovered. This indicator mineral mismatch was thus strong evidence for the presence of as yet undiscovered kimberlites up-ice of the Vasa dykes, and explaining why the company has persisted in exploring in this area. The company is now waiting to find out if these new kimberlite discoveries echo the chemistry of the positive till anomaly.
 

These new discoveries further serve to confirm that Arctic Star is dealing with multiple kimberlite occurrences in a field and bodes well for more discoveries.
 

The current excavator work will continue into early August and will be followed up with ground geophysics and drilling.
 

The company is strategically planning to do more work through the fall to search for additional kimberlites and to define the size, shape and diamond content (with caustic fusion analysis) of these latest discoveries.
 

Mr. Buddy Doyle said, I continue to be amazed that we can discover kimberlites using the very inexpensive excavator technique. This is the most efficient diamond exploration work I have been involved with in my 38 years of looking for economic diamond deposits. I thank our team in Finland led by Roy Spencer for their continued efforts.
 

The Qualified Person for this news release is Roy Spencer, Fellow AUSIMM, a Geologist of over thirty years’ experience in diamonds.
 
About Arctic Star
 

The Company owns 100% of the recently acquired Timantti Diamond Project including a 243 Ha Exploration Permit and a 95,700 Ha Exploration Reservation near the township 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 discoveries in a large kimberlite field. The Company also controls diamond exploration properties in Nunavut (Stein), the NWT (Diagras and Redemption) and a rare metals project in BC (Cap).
 

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.
 

Patrick Power, CEO, President
+1 (604) 218-8772
ppower@arcticstar.ca

 

...click here for full copy from source

 

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Insight -- Status of the Current Diamond Market

 

 

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."

 

Zimnisky Global Rough Diamond Price Index

 

 

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.
 

World Diamond Production Forecast

 

 

Figure 11. (above) -- World Diamond Production Forecast (Source: Bain & Company published December-2018).

 

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 closing:

  • 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 since 1990’s.

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 margins

 

 

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.

    

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Below is additional insight on Arctic Star Exploration Corp.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

  

 

Recent news releases regarding Company accomplishments and operational developments:

  

• August 27, 2019 "Arctic Star Receives Compelling Results From Ground Geophysical Surveys at the Stein Diamond Project".

 

• July 16, 2019 "Arctic Discovers More Kimberlites, By Excavator, Timanti Project, Finland".

 

• May 14, 2019 "First Results from 2019 Program in Finland".

 

• May 6, 2019 "Arctic Star Exploration Corp. Completes Spring Exploration Program at Diagras Property, Northwest Territories, Canada".

 

• April 16, 2019 "Arctic Acquires Second Exploration Permit, “Vaimosou”, Timantti Project Finland".

 

• April 3, 2019 "2019 Kimberlite Exploration Program Begins in Finland".

 

• March 28, 2019 "Arctic Star Announces Closing of Second and Final Tranche of Over-Subscribed Private Placement".

 

• March 25, 2019 "Arctic Star Exploration Corp. Commences Exploration Program at Diagras Property, Northwest Territories, Canada".

 

• March 21, 2019 "Arctic Star Announces Status of Private Placement and Grant of Stock Options".

 

• March 8, 2019 "Arctic Star Announces Extension of Private Placement and Increase in Offering".

 

• February 11, 2019 "Arctic Star Announces Sale of Cap Property".

 

• January 24, 2019 "Arctic Star Announces Non-Brokered Private Placement".

 

• December 17, 2018 "Arctic Star Announces Resignation of a Director".

 

• October 23, 2018 "Arctic Star Announces Management Changes".

 

• October 11, 2018 "Arctic Star Exploration Corp stakes 8 new claims at Diagras property".

 

• October 4, 2018 "Arctic Star Announces Diamond Results from Black and Grey Wolf Kimberlites, Timantti Project, Finland".

 

• August 23, 2018 "Arctic Star Exploration Corp. Enters Option Agreement for Stein Diamond Project Nunavut, Canada".

 

• July 30, 2018 "Arctic Star Reports Spring Exploration Program Results from Diagras Property, Northwest Territories, Canada".

 

• July 5, 2018 "Arctic Star Announces Diamond Count of 758 Stones from Drilling at Timantti Diamond Project, Finland".

 

• June 5, 2018 "Arctic Star Announces The First Diamond Results From The Spring 2018 Drilling On The Timantti Project, Finland".

 

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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 video https://youtu.be/0iJYdUMnWdc online]:

 

"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 profitability."

 

 

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 holes.

 

Gravity Survey 2017

 

 

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.

 

Diagras Jack Pine Kimberlite

 

 

Figure 17. (above) -- Synopsis of the Jack Pine Kimberlite on Dia-Gras Property.

 

Diagras Suzanne Kimberlite

 

 

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.

 

Diagras HLO2 Kimberlite

 

 

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 Diamond Diavik.

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 Diagras.

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 consideration.

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 Targets

Target Gravity
(stations)
Ohm Mapper
(line kilometers)
Magnetics
(line kilometers)
Drill testing
Planned
Anne X X X  
Black Spruce 236 12.8 20.2
Dodi X X 18  
Don X X X  
Drew X X X  
Emily X X X  
Finlay 168 X X  
George X X X  
Hanna X X X  
HL01 34 X X  
HL02 104 3.1 8.66
HL055 X X 8.3  
Jack Pine/Sequoia 253 9.94 39.02
Kong 178 5.6 18.72
Krista X X 12.6  
Lindsey X X 11.6  
Nadine 40   83.2  
Naomi 126 7.7 16.43  
Penelope (aka DG007) 169 5.8 15
Petra 72 7.8 63  
Suzanne 199 16.1 18.55
Tabatha 253 9.94 39.02
Taz X X 11.6  

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 bearing.
 

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 Contours.
 

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 kimberlite phase.

 

 

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 earlier explorers.

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.

Qualified Person
 

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 and Redemption).
 

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.

Patrick Power, President & CEO
+1 (604) 218-8772
ppower@arcticstar.ca

 

...Click Here for full copy of release from source.

  

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Stein Property, Nunavut Canada

 

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 tested.

  • Kimberlitic indicator minerals are showing high chrome, low calcium G10 pyrope garnets were followed up-ice direction.

SEE August 27, 2019 news release "Arctic Star Receives Compelling Results From Ground Geophysical Surveys at the Stein Diamond Project".

 

 

 

Figure 21. (above) Stein Property.

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Arctic Star Exploration Corp.'s Technical Leadership, Management, and Governance  Skip to top

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, President, Director

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 Director

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 companies.

 

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.

 

Binny Jassal, CPA, CGA, FCCA, – Chief Financial Officer

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: Ph (604) 689.1799

 

Company's web site: www.arcticstar.ca   SEDAR Filings: URL

 

 

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*Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification. *Estimates of potential made by the mining analyst and journal(s) are non 43-101 and not from the Company.

 

     

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