Arctic Star Diamond Corp. (the “Company”, TSX-V: ADD) is pleased to announce the completion of a prospecting and sampling program on the J6L1 Rare Metal Property, located approximately 50 km northwest of Sept-Iles, QC. As stated in the Company’s news release of August 31, 2010, the Company entered into an option agreement with Big Red Diamond Corp. (‘Big Red’) on the J6L1 Rare Earth Elements (‘REE’s”) project located 52 kilometres northwest of Sept-Iles, Que. Arctic Star can earn a 50% interest in the J6L1 project by issuing 1,000,000 million shares of the company, spending $500,000 in exploration expenses on the project by December 31, 2011 of which $75,000 must be spent by December 31, 2010.
During early November anomalies generated from a recently completed magnetic and radiometric survey were ground checked, prospected, and sampled. A total of 118 samples were collected throughout the property. Highly anomalous radioactivity was encountered at seven distinct locations, with several readings exceeding those from the historic J6L1 showing directly adjacent to the property. Anomalous radioactivity is considered a primary indicator of for rare metal mineralization. Most anomalous readings were traced for short distances, and appear to be confined to narrow trends associated with quartz veins. Many of these trends were truncated by overburden and require further evaluation.
The geology of the property has previously been mapped as a hypersthene monzonite intrusion. Coupled with historic assays of highly anomalous Nb-Zr and rare earth elements (REE), this suggests potential for the area to host per-alkaline rocks and associated rare metal mineralization.
Samples were sent to Activation Laboratories of Ancaster, ON for analysis using their 8-REE (whole rock, REE, base-trace metals) with Nb and Ta determined using XRF and Au by fire assay. Results will be released when received.
The property closely borders four Nb, Zr, Y, and rare earth element (REE) showings discovered by Soquem in the late 1970’s (J6L1-West, Central, East, and North showings). The showings were discovered after follow-up of uranium anomalies from a lake bottom geochemical survey. Trenching of the showings produced analysis of 1.90% to 7.88% Nb2O5 and peak values of approximately 4% rare earths (semi-quantitative) and 12% Zirconium.
An airborne magnetic and radiometric survey recently completed over the property and immediate surroundings has outlined a large (~5 x 5 km) ring structure with a distinct magnetic core. The J6L1 showings lie within an outer ring characterized by low background magnetics that extend throughout much of the property. Multiple anomalies, considered prospective for Nb-Zr-REE mineralization were outlined by the airborne survey.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
The proposed transaction is subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR DIAMOND CORP.
Patrick Power, President
Forward Looking Statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) the closing of the option to acquire an interest in a rare earth property; (b) the likelihood that the property has rare earth; (c) the work program to be conducted by Arctic; and (d) the establishment of the joint venture. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Arctic such as the willingness of the parties to close the transactions, the approval of the transaction by the Exchange, satisfactory results of the due diligence investigation on the Property, our ability to raise financing, geological information resulting in changed plans for exploration, our ability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general .Discoveries of minerals on other properties are not necessarily an indication of any commercial mineralization on nearby properties. These risks and uncertainties could cause actual results and Arctic’s plans and objectives to differ materially from those expressed in the forward-looking information. Due to conditions precedent to closing, and the risk that these conditions precedent will not be satisfied, the Arctic can offer no assurance that it will close the Transaction. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, Arctic assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.