October 23rd, 2013 – Arctic Star Exploration Corp. (TSXv:ADD) (the “Company” or “Arctic Star”) is pleased to report that 32 isolated gravity anomalies that could be kimberlite occur on its 100% owned,11,500 hectare Redemption project at Lac de Gras, Northwest Territories. The property is under option to North Arrow Minerals Inc. (TSXV-NAR), operator of the project, who has an option to earn 55% interest by spending $5 million prior to August 2017.
Fugro Airborne Surveys flew a 1,374 km HeliFALCON Airborne Gravity Gradiometer (“AGG”) survey in July 2013 in order to highlight isolated gravity anomalies on the property. This type of survey has been successful in locating kimberlites elsewhere in the Lac de Gras field that do not reveal themselves in other data sets, such as magnetics and electromagnetics. This relatively new technology is particularly effective at finding kimberlites as the upper eruptive phases of a kimberlite tend to be less dense (≤2.0-2.5 g/cm3) where as the surrounding country or host rock is more dense (~2.67 g/cm3). Kimberlites identified by the Falcon AGG system on other projects in the NWT appear as circular to sub-circular gravity gradient lows.
The final data set from the Falcon AGG survey was delivered in early September. The Company is pleased to note that the Falcon AGG survey originally delineated 37 anomalies that could be caused by kimberlites. These anomalies are currently being prioritized using the following criteria:
- Shape, strength and size. Circular or elliptical anomalies that are pipe-like, greater than 30 Eötvös (gravity gradiometry units), that are in the order of 100 m to 800 m in diameter.
- Those that are on land or, if they are under a lake, the water depth is not sufficient to explain the anomaly.
- Those gravity anomalies that have coincident magnetic and or electromagnetic anomalies.
- Those anomalies that are directly up ice of indicator mineral trains.
Following receipt of the final data set, a field crew was dispatched in September to collect detailed bathymetry (sonar) data over 12 key lake targets that contained gravity anomalies. Bathymetry from an additional lake target was already available to make a total of 13 lake targets. Christopher Campbell, Director of Arctic Star and Geophysicist, has been using the bathymetry data to model the effect of the water (having a density ~1.0 g/cm3). 3D models of the lakes have been constructed, with their gravity gradient responses modeled; if the observed Falcon AGG responses are fully explained by the gravity field of the modeled lake, then the target is significantly downgraded. However, if the water depth does not explain the anomaly partially or completely, then a kimberlite pipe-like body is modeled to best fit the data. This modeling is based on Encom’s ModelVision Pro software. This software is unique in that it uses all the outputs from AGG system to optimize the best model fit.
Modeling the bathymetry over the 13 lake targets has resulted in 9 targets that model a kimberlite-like body under the lake. The gravity response is not explained by the water depth and a circular pipe like body of density <2.5 g/cc makes a best fit. Four targets were eliminated as the water depth explained the gravity response over the lake target. So far modeling the bathymetry eliminates 30% of the targets. There now remain 32 targets in total, 24 of which have no bathymetry data yet but may be collected in the future. To date this exercise has generated 9 drilling targets that will be further prioritized using criteria noted above in this news release.
In addition to the gravity and bathymetry work, 350 heavy mineral till samples were collected. The till sampling was designed to test up ice and down ice of specific priority targets as well as fill in gaps in the till sampling on the property to better define indicator mineral trains. Mineral processing is underway, with results expected this quarter.
The Redemption project benefits from an extensive database of previous exploration work conducted by Arctic Star and other diamond exploration companies, including airborne and ground geophysical surveys, till geochemical sampling and a limited amount of drilling. Of significance is the fact that the project covers the interpreted up-ice termination of the South Coppermine kimberlite indicator mineral train. The South Coppermine train was extensively explored by Arctic Star between 2004 and 2010 and is defined by a full suite of kimberlite indicator minerals including pyrope garnets, high-magnesium ilmenites, chrome diopsides, chromite and eclogitic garnets. These indicator minerals exhibit compositions that are typical of minerals found within diamond-bearing kimberlites. A number of the indicator minerals have been described as having angular shapes, soft alteration coats and in some cases are attached to kimberlite; textural characteristics that are interpreted to indicate the minerals have not travelled far from their bedrock source. At least two other indicator trains occur to the north of the South Coppermine train.
The Company also reports that it has cancelled the financing announced in the news release dated July 11, 2013.
The Company is pleased to announce a non-brokered private placement financing of up to $650,000 (the “Private Placement”). The Private Placement will consist of the issuance of up to 10,000,000 shares of the Company at $0.065 per share. This financing is all non-flow through without warrants.
Finders’ fees may be paid by the Company in conjunction with the completion of the Private Placement in accordance with TSX Venture Exchange policies.
All of the securities issued pursuant to the Private Placement will be subject to a restricted period of four months and one day from the date of closing.
The Company intends to use the proceeds from the financing for general corporate purposes and potential new projects. The Private Placement is subject to approval from the TSX Venture Exchange.
The author of this new release is Buddy Doyle MAusIMM a Geologist of 30 years with over 20 years of diamond exploration, the qualified person is Mr. Christopher Campbell P. Geo, B.C. with over 30 years experience in exploration with extensive experience in modeling Airborne Gravity data.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION 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 amendment; and (b) the likelihood that the property has diamonds, or other commercial mineralization. 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. Factors which can materially change the results of the forward looking statements include factors such as the approval of the transaction by the Exchange, our ability to raise financing to pay our obligations, our ability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general . 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. 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.