Arctic Star Exploration Corp. is on fire. The European diamond hunter has been trading record volumes recently while cashing up for the next round of an eagerly-awaited exploration program at its 100% owned Timantti Project in Finland.
Finding diamonds is one of the most difficult tasks in the exploration sector. It’s because diamonds are pretty rare and consequently of high value. But when you do find diamonds, it can be one of the most rewarding success stories in the entire exploration and mining industry.
As announced today, Arctic Star has commenced its 2019 exploration program, which “is designed to locate further kimberlite discoveries”. Kimberlite is a volcanic rock which sometimes hosts diamonds.
So when you find diamonds in a kimberlite, the chances are great that you are onto something, because there is a rule every diamond hunter knows by heart: A kimberlite rarely comes alone! Predominantly, kimberlites occur in groupings, also called clusters, averaging a minimum of 30 kimberlite bodies. And when these contain diamonds, it’s called a diamond field.
So when you already have found a kimberlite – and there are diamonds in it – then you better look around, because the chances of finding more diamondiferous kimberlites are pretty high. The more diamondiferous kimberlites you find, the greater are your chances that one of them hosts diamonds in large enough quantities and sizes to become the leader of the pack.
Last year, Arctic Star was successful in locating and sampling 4 kimberlites on its Timantti Property, all of which contain diamonds. These diamondiferous kimberlite bodies found to date have been named White Wolf, Black Wolf, Grey Wolf, and Vasa Dykes.
The reasoning behind Arctic Star to look for more cubs to its growing pack is crystal clear: As kimberlites typically occur in clusters, let‘s first find as many kimberlites as possible, and then do bulk sampling of the best one(s).
Although drilling at the 4 kimberlites identified thus far showed some promising diamond counts and sizes, the company believes that looking for more kimberlites is a better bet going forward (in terms of creating shareholder value), instead of spending money on bulk sampling the 4 kimberlites already found.
According to today‘s press-release:
“There is considerable evidence that there are further kimberlites within the company’s exploration area as till sampling shows a distribution of diamond indicator minerals pointing to additional sources. Also, over thirty magnetic anomalies that may represent kimberlites have been identified and prioritized within a 3km radius of the Wolf kimberlites.
Initially the exploration work will consist of ground magnetic surveys over the priority targets, followed by trenching over the anomalies using an excavator. Arctic Star was successful in locating kimberlite using these methods in 2018, and there is every reason to expect this success can be continued in 2019. Kimberlite that does occur in the trenches will be sent for caustic fusion to determine micro-diamond content.
Results of the excavation program will be disclosed as information on the testing of targets becomes available
Kimberlites with significant diamonds will be slated for diamond drill testing to determine size, and promising magnetic anomalies that could not be trenched due to till depth will also be drill tested later in 2019.
Once Arctic Star has determined that most of the kimberlites in this new field have been tested for microdiamond content, the company plans to conduct bulk sampling on the most promising diamondiferous kimberlites, which will better define the grade and give a view of the average price of the commercial size stones.“
Arctic Star Exploration Corp.
1111 West Georgia Street
Vancouver, B.C. V6E 4M3, Canada
Phone: +1 604 689 1799
Shares Issued & Outstanding: 113,301,363
Canadian Symbol (TSX.V): ADD
Current Price: $0.085 CAD (04/02/2019)
Market Capitalization: $10 Million CAD
German Symbol / WKN (Tradegate): 82A1 / A2DFY5
Current Price: €0.059 EUR (04/02/2019)
Market Capitalization: €7 Million EUR
Stephan Bogner (Dipl. Kfm., FH)
8260 Stein am Rhein, Switzerland
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. 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 profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in 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., whereas the featured company Arctic Star Exploration Corp. pays Zimtu Capital Corp. for the preparation, publication and additional distribution of this report.