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|  | |  | |   Credit Lake Project
The ground is held 100% by Arctic Star, but is subject to a 51 % back-in right by Kennecott. The back-in is triggered when Arctic takes more than 200 carats from a kimberlite discovery in the area of interest. To back in, Kennecott must spend 2.5 times the Arctic expenditure on the property to date to earn-in. Once earned-in Kennecott may increase their position to 60% by taking the discovery to a positive feasibility. The Credit Lake property is adjacent to the southwest border of the Ekati property held by BHP/Billiton, and is 32krn from the Ekati diamond mine in the Northwest Territories. Extensive till sampling on the property (3500 to date) has revealed at least five separate diamond indicator mineral trains. Probe analyses of the indicator grains are considered positive and strongly indicate they are associated with diamond mineralization In Summer 2006, Arctic took 826 till samples in order to hone in on the source. The samples spacing is now less than 250m in the crucial areas. Also in 2006, the Company shot four kilometers of seismic refraction images in the depressions near the head of the indicator trains. These seismic surveys imaged some areas with depressions that had a high velocity contrast to the surrounding granite. The seismic work also successfully imaged deep overburden. In the past we may have drilled these zones based on the gravity anomaly caused by the deep till. The seismic proved to be a good discriminator here and many of these areas can now be rejected as drill targets. In September 2006, 22 power auger holes were completed in some of the seismic depressions. Some of the holes proved negative, bringing up till barren of indicators. But other drill holes had super-abundant indicator minerals, which, after morphological study and probe analyses, are thought to be above, or extremely close to, source. In one area dubbed "Phil's Lake", located directly at the head of the most prominent indicator train, the auger intersected an unusual black mud beneath the till. The black mud has abundant indicator minerals and is reminiscent of the black weathered material that characteristically forms on top of many of the kimberlites mined at Ekati and Diavik. It is possible that we have augered into the weathered top of a kimberlite at Phil's Lake. The only way to be certain is to diamond drill beneath this occurrence to see if there is unweathered kimberlite. This will be the prime target of our Spring 2007 drill program. Given that we are in sight of Canada's greatest diamond mines, with geochemical proof of nearby yet-to-be-discovered diamond mineralization, Arctic is confident that a source with encouraging results will be found. Siku Property Joint Venture with Diamonds North Resources Inc. Arctic was recently approached by Diamonds North Resources Inc. to earn an option on the Siku property in the Northwest Territories. Under the terms of the agreement, Arctic Star can earn a 50% interest in the property by:
As kimberlites occur in clusters, or families, often averaging over 30 members, the chance of finding kimberlites on the Siku property is considered high. The now historic Lac de Gras and later Slave Craton diamond rushes of the 1990s lay testament to this. But, while the first kimberlites at Lac de Gras were not economic, and it was three years before mines where found, Arctic Star is hopeful that the field contains economic kimberlites and that they occur on our optioned ground. New Bigg Project In May 2005 Arctic Star staked approximately 27,000 acres of ground just south of New Biggining Lake, 30krn southwest of Arctic's flagship property, Credit Lake. The New Bigg project was a result of using historic indicator mineral sample databases from both Kennecott and the government, to recognize new opportunities. In 2004 Arctic took a grid of 3km-spaced till samples. The results showed that there was a terminating indicator mineral train, containing pyrope, chrome diopside, and ilmenite. This area was subsequently staked.
Kyle Lake The Kyle Lake Project is a joint venture between Arctic Star and Metallex, with Kelex enjoying a 10% free carried interest. Arctic has an 8.5% participating interest. The joint venture flew an extensive airborne magnetic survey in the general area of the Kyle Lake kimberlite field. Previous explorers had discovered this kimberlite field in the early to mid-1990s. The kimberlites are Proterozoic in age and lie beneath till and limestone cover that renders till sampling non-effective. Magnetics have been the main discovery tool to date. The Metallex/Arctic joint venture has discovered two kimberlites to date, the second containing a significant diamond count. A bulk sampling program is underway and partial results show enough diamonds to remain positive about the outcome. Attawapiskat Arctic has a 20% working interest in this property, joint ventured with Metalex Ventures Ltd. Kel-ex is subject to a 10% carried interest. Metalex is the operator of these claims, along with the adjacent Dumont claims where Arctic holds an 18% interest. The Attawapiskat property is also subject to a 2.5% net smelter royalty under certain circumstances. These properties are adjacent to the east side of a lease held by De Beers. The De Beers leases contain a cluster of kimberlites, which include the diamondiferous Victor Pipe. De Beers plan to mine the Victor pipe and are currently seeking all the required permits and permission. Arctic and its joint venture partners have deployed relatively new auger technology to sample the basal tills in the area. The results have generated several unique indicator mineral anomalies, with no known sources of these indicator minerals up-ice. The joint venture also flew these properties with helicopter-borne magnetics and EM, and has conducted ground surveys following up the anomalies generated from this work. The joint venture plans to continue exploration work to locate the source of indicator minerals. The chemistry of the indicator minerals is positive, so it is suspected that the source of the indicator anomalies will be diamond bearing. Maps
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| ©2007 Arctic Star Diamond Corp. All Rights Reserved. | Disclaimer | |
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