Arctic Star Exploration Corp (CVE: ADD, OTCQB: ASDZF) says it now has drill targets with high potential to discover new kimberlite in one of the best diamond addresses in the world.
It comes as the company updated on its 2018 spring exploration program on its Diagras property in the Northwest Territories, Canada.
Diagras is a contributing joint venture between Arctic Star, which holds a 40% interest, and Margaret Lake Diamonds Inc, which holds 60%, and is the project operator.
Diagras lies in the prolific Lac de Gras diamond field just 35 km from the world-class Diavik diamond mine, where a joint venture between Rio Tinto (LON:RIO) and Dominion Diamond Diavik is mining.
Exploration there has focused on ground surveys and other airborne geophysical anomalies.
The groundwork is designed to develop targets for a spring 2019 drill program.
In a detailed report, Arctic Star said that the of the surveys conducted this year at Diagras, DG007, HL02 and Suzanne had emerged as "interesting, drillable targets" showing evidence of multiphase kimberlite complexes.
"The company now has drill targets with high potential to discover new kimberlite or untested kimberlite phases in one of the best diamond addresses in the world, close to the operating Ekati and Diavik diamond mines," it added.
Looking ahead, the group said: "The company plans to drill test the referenced targets as well as generate more targets through an expanded ground geophysical and drill program in spring 2019."
Arctic Star shares fell 4.55% in Toronto to C$0.105.