Since October 1998, the Diavik Mine is Canada’s largest diamond mine in terms of carat production. Buddy Doyle (Director and Vice President Exploration of Margaret Lake Diamonds Inc.) has over 30 years’ experience in mineral exploration and it was him who managed the Rio Tinto team involved in the discovery of Diavik.
Today, Margaret Lake Diamonds Inc. and its joint venture partner Arctic Star Exploration Corp. announced diamond exploration results from the Diagras Property in Northwest Territories, Canada. Margaret Lake Diamonds acts as operator holding a 60% interest, conducted geopyhsics (gravity, electromagnetics) around historically identified kimberlites and anomalies with kimberlite-like signatures.
The Diagras Property lies directly on trend with the Diavik deposits currently being mined by a joint venture between Rio Tinto and Dominion Diamond Diavik. The Diagras land package consists of 18,699 contiguous hectares of mineral claims containing 12 previously identified kimberlites.
The surveys targeted kimberlite intrusions and were designed to investigate areas proximal to known kimberlites as well as explore new target areas. Warm temperatures during the time of the surveys caused a rapid snow melt and flooding of the ice covered lakes. The conditions forced a premature end to the program leaving some of the planned target areas untested. This work is planned to be completed in 2019.
Nonetheless, 3 targets (Suzanne, HL02 and DG007) have emerged as interesting, drillable targets, showing evidence of multi-phase kimberlite complexes. The companies now have 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. Margaret Lake Diamonds plans to drill test the referenced targets as well as generate more targets through an expanded ground geophysical and drill program in Spring 2019.
Considering the promising exploration results at Diagras, identifying 3 drillable targets, Margaret Lake Diamonds also announced today to put exploration at its near-by Margaret Lake Property on hold for the immediate future to concentrate on Diagras. Drilling at the Margaret Lake Property did not intersect kimberlite. Both projects were funded in part by significant grants from the Government of the Northwest Territories (GNWT) Mining Incentive Program (MIP).
At Suzanne, a combined electromagnetic (EM) and gravity anomaly distinctly breaks a diabase dyke, with a separate magnetic low to the south. Margaret Lake Diamonds has not located the previous drill holes, but it is likely they targeted either the EM or the magnetic anomaly, but not both. The anomaly is large enough (250 m) to deserve more than one drill hole to search for different phases.
At HL02, 2 long angle holes from the shore line (the anomaly is in a lake) were targeted and completed within this kimberlite by the previous explorers. The magnetic signature in this area is complex, suggesting the possibility of untested phases. The partly completed EM survey conducted this year shows an EM anomaly associated with the kimberlite but not tested directly by previous drilling.
At the DG007 anomaly, previous explorers targeted a “classic” Lac de Gras, magnetic and EM anomaly. 2 holes were drilled but failed to explain this anomaly, intersecting only granite. One of the drill collars has been found in the field and its position is displaced from that reported in assessment files, possibly due to GPS errors. Drilling to properly explain this target, which Margaret Lake Diamonds believes is likely to be kimberlite, is required.
The joint venture between Margaret Lake Diamonds and Arctic Star Exploration was also successful using this strategy during the spring 2017 exploration program. This work revealed gravity and EM anomalies proximal to known magnetic kimberlites that constitute compelling drill targets. At the Jack Pine Kimberlite, which is one of the largest kimberlite complexes in the Lac de Gras diamond field (over 1.5 km in its longest dimension), the geophysical methods (ground gravity, EM and magnetics) highlighted obvious magnetic kimberlite phases drilled by previous explorer De Beers Canada while also successfully defining a new kimberlite-like geophysical expression, in the form of coincident gravity and EM anomalies. At the Black Spruce Kimberlite, a series of gravity lows occur adjacent to the south of the known magnetic phase of the kimberlite. One of these gravity anomalies clearly breaks and disturbs a diabase dyke, a common characteristic of many Lac de Gras kimberlites.
Margaret Lake Diamonds Inc.
#2050 - 1055 West Georgia Street
Vancouver, BC, Canada V6E 3P3
Phone: +1 604 630 2810
Shares Issued & Outstanding: 54,686,587
Canadian Symbol (TSX.V): DIA
Current Price: $0.06 CAD (07/27/2018)
Market Capitalization: $3 Million CAD
German Symbol / WKN (Frankfurt): M85 / A2ARXY
Current Price: €0.03 EUR (07/27/2018)
Market Capitalization: €2 Million EUR
Report #3 “Following the Path of De Beers“
Report #2 “Drilling Into A Diamond Hot Spot“
Report #1 “Glittering Exploration Opportunities Next to Canada‘s Diamond Mines“
Arctic Star Exploration Corp.
1111 West Georgia Street
Vancouver, B.C. V6E 4M3, Canada
Phone: +1 604 689 1799
Shares Issued & Outstanding: 105,448,863
Canadian Symbol (TSX.V): ADD
Current Price: $0.11 CAD (07/27/2018)
Market Capitalization: $12 Million CAD
German Symbol / WKN (Frankfurt): 82A1 / A2DFY5
Current Price: €0.066 EUR (07/27/2018)
Market Capitalization: €7 Million EUR
Previous Coverage on the Timantti Project in Finland
Disclaimer: Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and Arctic Star Exploration Corp. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Arctic Star Exploration Corp.’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Arctic Star Exploration Corp.´s and Margaret Lake Diamonds Inc.´s profile on SEDAR at www.sedar.com. Please read the full disclaimers within the full research reports as a PDF (here and here) as fundamental risks and conflicts of interest exist. This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. The author, Stephan Bogner, holds a long position in Margaret Lake Diamonds Inc. and Arctic Star Exploration Corp. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Arctic Star Exploration Corp. and Margaret Lake Diamonds Inc.