Arctic Star Exploration Corp (CVE:ADD) told investors that exploration had kicked off at its 40%-owned Diagras property in the Northwest Territories, Canada, which lies directly on trend with the Diavik deposits currently being mined by a joint venture between Rio Tinto (LON:RIO) and Dominion Diamond Diavik.
The project is a joint venture with operator Margaret Lake Diamonds Inc, which has the other 60%.
The exploration program will comprise gravity, magnetic and electromagnetic (EM) ground surveys focused around historically identified kimberlites in a bid to identify further kimberlite potential for drilling.
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This work is funded in part by grants from the government of the Northwest Territories (GNWT) Mining Incentive Program (MIP).
Diagras encompasses 22,595 hectares within 31 claims with a total of 23 known kimberlites already.
The joint venture has previously been successful during exploration in 2017 and 2018, revealed gravity and EM anomalies near to known magnetic kimberlites that constitute compelling drill targets.
For example, at the Black Spruce kimberlite, previous workers discovered it by drilling a distinct magnetic low. Preliminary results from this year, 2019, show a strong EM anomaly that is partly separate and partly coincident with the magnetic and gravity anomalies.
Separate drill testing
The gravity and EM anomalies require separate drill testing.
Targets of great interest were also generated at the Jack Pine kimberlite - one of the largest kimberlite complexes in the Lac de Gras diamond field. Meanwhile, at the Suzanne kimberlite, ground geophysical work has revealed a magnetic low anomaly, a gravity anomaly and a linear EM anomaly, said Arctic Star.
Data in the public domain indicate that only one drill hole tested this kimberlite leaving potentially untested kimberlite(s) and/or phases, the firm added.
Shares in Arctic Star eased 5.6% to $0.085 in Toronto.
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