Arctic Star Exploration Corp (CVE:ADD, OTCQB:ASDZF) told investors that exploration had kicked off at its Diagras property in the Northwest Territories in Canada.
The property is a joint venture. Margaret Lake Diamonds holds a 60% interest and acts as project operator.
Arctic Star, which owns the Timantti Diamond Project in Finland, holds a 40% interest.
Notably, Diagras lies in the prolific Lac de Gras diamond field, Northwest Territories, Canada and just 35km from the world-class Diavik diamond mine.
It lies directly on trend with the Diavik deposits currently being mined by a joint venture between major Rio Tinto (LON:RIO) and Dominion Diamond Diavik.
The exploration programme is to consist of gravity, magnetic and electromagnetic (EM) ground surveys, which will be focused around historically identified kimberlites as well as other airborne geophysical anomalies with kimberlite like signatures, the firm said.
Modern techniques are being used to define possible additional kimberlite or kimberlite phases missed by previous explorer De Beers Canada, who did no employ these methods.
This ground work will provide detailed data for further analysis and interpretation to identify additional kimberlite potential and targets.
Last year, work revealed gravity and EM (electro-magnetic) anomalies near to known magnetic kimberlites, which represent 'compelling' drill targets.
Also today, Arctic Star announced a non-brokered private placing of 1.130mln units at C$0.17 each for proceeds of C$192,000 gross.
Each unit consists of one share and one share purchase warrant, with each of the latter entitling the holder to buy one further share for 24 months from the closing date at an exercise price of C$0.25 each.
Proceeds from the fundraise are planned to be used for exploration on the Timantti and Diagras diamond projects and for general working capital.
Arctic shares are unchanged at C$0.16.