Shares of North Arrow Minerals (CVE:NAR) climbed over 38% on Tuesday after uncovering a new potential diamond district in Canada at its Pikoo project in Saskatchewan.
"To recover such relatively high counts of +0.85 mm diamonds from the first kimberlite discovered at Pikoo is an exceptional result and establishes Pikoo and the northern Sask Craton as a new diamond district in Canada," said president and CEO Ken Armstrong in a statement.
The company said a 209.7 kg sample of drill core from the PK150 kimberlite -- the first kimberlite found at Pikoo -- returned 745 diamonds larger than the 0.106 mm sieve size, including 23 diamonds larger than the 0.85 mm sieve size. The total weight of the +0.85 mm diamonds recovered from the sample is 0.2815 carats, North Arrow said.
The high microdiamond counts suggest potential for a coarse diamond size distribution, according to the company.
The PK150 kimberlite was discovered as part of a short, 10 hole program completed earlier this year, with several priority targets remaining on the 33,000 plus hectare property. The project is located nearby infrastructure and power, and is within 10 km of Saskatchewan Highway 911.
North Arrow funded the recent drill program, as part of an option agreement with Stornoway Diamond Corp (TSE:SWY), under which North Arrow can earn an 80% interest in the project. The first kimberlite found is thought to be 10 to 15 metres wide, currently open to depth and along strike.
The company said that a study of the mineral chemistry of the kimberlites discovered this year is now underway, including for PK150. Exploration plans for 2014 will be developed over the next couple of months, with work expected to include drilling, geophysical surveys and till sampling.
"Today's news validates North Arrow's strategic approach of targeting and assembling a prospective portfolio of Canadian diamond projects that benefit from significant historical exploration, and are now at an advanced or drill ready stage," said Armstrong.
The company, with more than $6 million of cash on hand, is well positioned to further advance the Pikoo project, as well as continue to develop the Qilalugaq property in Nunavut and to "evaluate unexplained kimberlite indicator mineral trains at the Redemption and Lac de Gras diamond projects" in the Northwest Territories.
Shares of North Arrow soared 38% to 54 Canadian cents in Toronto this afternoon, stretching year-to-date gains to over 54%.