Tuesday 25th September 2018

Resource Clips


Posts tagged ‘Margaret Lake Diamonds Inc (DIA)’

Paul Brockington of Margaret Lake Diamonds sees new potential in an NWT property

June 5th, 2018

…Read more

Margaret Lake Diamonds tackles two NWT projects with geophysics and drilling

May 30th, 2018

by Greg Klein | May 30, 2018

As work resumes at Diagras, Margaret Lake Diamonds TSXV:DIA now returns to a second front in its search for Northwest Territories gems. On May 30 the company announced a new geophysics program had begun at Diagras, coinciding with a drill campaign that started earlier this month at the company’s Margaret Lake project.

Margaret Lake Diamonds tackles two NWT projects with geophysics and drilling

The Diagras agenda calls for ground gravity, magnetic and EM surveys around known kimberlites, as well as around potential kimberlites suggested by earlier geophysics.

The strategy will employ techniques that weren’t used when De Beers explored the area but have since proven successful elsewhere. Some examples include two other Lac de Gras-region projects, Mountain Province Diamonds’ (TSX:MPVD) Kennady North and Peregrine Diamonds’ (TSX:PGD) Tli-Kwi-Cho DO-27/DO-18 kimberlite complex, Margaret Lake stated.

The company holds a majority interest and acts as operator on the 18,699-hectare Diagras property in a 60/40 joint venture with Arctic Star Exploration TSXV:ADD. The project sits 35 kilometres from Canada’s largest diamond producer, the Diavik mine of Rio Tinto NYSE:RIO and Dominion Diamond Mines.

Margaret Lake’s 100%-held, 23,199-hectare Margaret Lake property lies nine kilometres north of the De Beers/Mountain Province Gahcho Kué diamond mine and two kilometres from Mountain Province’s Kelvin and Faraday deposits.

Last year’s Diagras work found “gravity and EM anomalies proximal to known magnetic kimberlites that constitute compelling drill targets,” Margaret Lake stated. Among areas of special interest is Jack Pine, one of the largest kimberlite complexes in Lac de Gras. Previous drilling has revealed diamonds, while an area of further kimberlite potential has yet to be drilled.

Additionally, gravity anomalies near the property’s Black Spruce kimberlite show similarities to other kimberlites in the region.

Meanwhile Margaret Lake has a rig testing six kimberlite targets on the company’s namesake property. Each target shows a gravity low, bedrock conductor or both. The company interprets those characteristics as potentially representing kimberlite.

Last month Margaret Lake closed a $495,500 first tranche of a private placement offered up to $2.2 million.

Read more about Margaret Lake Diamonds.

Emulating success

May 2nd, 2018

Margaret Lake follows Kennady’s playbook in the quest for NWT diamonds

by Greg Klein

With fresh financing and a rig en route, Margaret Lake Diamonds TSXV:DIA has drilling about to begin on its namesake project in the Northwest Territories. As with any outfit in similar circumstances, the company’s optimism has been buoyed by the performance of an illustrious neighbour, in this case Kennady Diamonds. But more objective encouragement comes from the extensive geophysics that determined the targets for Margaret Lake’s maiden drill program. Additionally, the project operator will be the same group that helped deliver success to Kennady.

“Aurora Geosciences acts as project operator for us and also for Kennady,” points out Margaret Lake president/CEO Paul Brockington. “So we’re using the same people who have done all the Kennady work for the last six years.”

Margaret Lake follows Kennady’s playbook in the quest for NWT diamonds

Public tribute came to Yellowknife-based Aurora at Mines & Money London 2016, when Kennady co-won (with NexGen Energy TSX:NXE) the Exploration Company of the Year award. Noting that Aurora had designed and carried out all of the property’s exploration since 2012, Kennady president/CEO Rory Moore said, “Gary Vivian, [then president, now chairperson of Aurora], and Chris Hrkac, [Aurora’s] senior project manager for the Kennady North project, together with their team deserve the lion’s share of credit for the successes that Kennady has enjoyed to date. Their innovative, systematic and dedicated approach to a technically challenging project has resulted in new and unique discoveries, and earned Aurora the respect of its peers in the industry.”

A further testament to their work came just last month as Mountain Province Diamonds TSX:MPVD closed its acquisition of Kennady in an all-share deal valued at $176 million. An MOU between Mountain Province and De Beers considers incorporating Kennady North into the joint venture that comprises their Gahcho Kué mine.

The 23,199-hectare Margaret Lake property sits about nine kilometres north of Gahcho Kué and two kilometres northwest of Kennady North’s Kelvin and Faraday deposits. The Gahcho Kué winter road passes through Margaret Lake.

Aurora’s participation in the project will be nothing new. The company ran the geophysics that brought Margaret Lake to the drill-ready stage and Aurora will return very shortly, this time with a rig. Financing will begin with a $495,000 first tranche that Margaret Lake closed last month, out of a private placement offered up to $2.2 million.

Results from airborne and ground EM, along with airborne gravity/gradiometry pioneered by BHP Billiton NYSE:BHP, show six initial targets. Each features either a gravity low, a bedrock conductor or both, possibly indicating kimberlite. “Our first objective is to see if these targets represent kimberlite and, if they do, the objective then would be to get sufficient kimberlite to analyze it for microdiamonds and indicator minerals,” Brockington explains. “We’ll try to drill as much as we can before spring break-up.”

But while encouraged by his successful neighbour, he’s not basking in reflected glory. Margaret Lake is “a science project,” Brockington emphasizes. “We’re very much relying on these gravity/EM anomalies to help us deliver the goods.”

It’s very clear that when De Beers was there they did not recognize all the kimberlite. They were drilling mag targets but we went in and did ground gravity and EM, and we can see other targets that very strongly suggest more kimberlite.—Paul Brockington, president/CEO
of Margaret Lake Diamonds

Farther north, in the Lac de Gras field hosting the NWT’s Ekati and Diavik diamond mines, Margaret Lake also has work planned for Diagras, where the company holds a 60% stake in a JV with 40% partner Arctic Star Exploration TSXV:ADD. This property hosts 13 kimberlites found by De Beers in the 1990s. Brockington thinks there’s more to be found.

“It’s very clear that when De Beers was there they did not recognize all the kimberlite,” he says. “They were drilling mag targets but we went in and did ground gravity and EM, and we can see other targets that very strongly suggest more kimberlite. We’re definitely going to do more geophysics there in the next few weeks. We hope to get a ground program going to look at other areas that weren’t covered in last year’s program and I think we’ll have a number of drill targets.”

The winter road to Diavik passes through the northwest corner of the 18,699-hectare property.

Looking forward to a busy and prospective period, Brockington says, “We’ve got a lot coming up and, when you look at the activity in the diamond patch, I think we’ve got about as much as anyone.”

Exploration begins at Arctic Star’s Finnish diamond project

November 23rd, 2017

Update: On November 24 Arctic Star announced the closing of a final tranche of an oversubscribed private placement totalling $1.7 million.

by Greg Klein | November 23, 2017

Having closed the acquisition a week earlier, Arctic Star Exploration TSXV:ADD now has a crew busy at its Timantti diamond project in Finland. Located among favourable regional infrastructure in the Fennoscandian Shield, which hosts the major Russian diamond mines Lomonosov and Grib, the property has geophysics, sampling and drilling planned.

Exploration begins at Arctic Star’s Finnish diamond project

Arctic Star VP of exploration Buddy Doyle
gathers kimberlite float samples at Timantti.

Timantti’s White Wolf kimberlite has already revealed 169 microdiamonds, 111 from 52.7 metres of historically extracted core and another 58 from an 18.9-kilogram sample. The current program will include ground magnetic, gravity and electromagnetic surveys over the Black and White kimberlites to define their sizes and identify other drill-worthy anomalies.

Additionally, 20 backhoe till samples will be taken to search for diamond indicator minerals. Drilling will consist of about eight holes totalling 1,500 metres, with a 500-kilogram core sample from each of the two kimberlites. Results of the program will determine whether to proceed with bulk sampling.

Work will focus on a 243-hectare area covered by an exploration permit. The project also includes a 95,700-hectare exploration reservation.

Among other projects, Arctic Star holds the Cap property in east-central British Columbia, host to an extremely rare carbonatite-syenite complex that’s potentially associated with several commodities. In September the company reported “highly anomalous” assays for niobium, rare earths and phosphate from sampling and a drill hole.

In the Northwest Territories’ diamondiferous Lac de Gras region, Arctic Star also holds a 40% stake in the Diagras JV, where majority partner Margaret Lake Diamonds TSXV:DIA carried out geophysics last summer.

This week Arctic Star appointed Scott Eldridge as president/CEO. From 2008 to 2016 Eldridge led Euroscandic International Group, providing investment banking and advisory services to resource companies. He has been responsible for raising over $500 million in equity and debt financing for mining projects internationally.

Earlier this month the company closed a private placement first tranche of $965,000.

Read Isabel Belger’s interview with Arctic Star’s Patrick Power.

Arctic Star Exploration finds “highly anomalous” niobium, rare earths and phosphate at B.C. project

September 25th, 2017

by Greg Klein | September 25, 2017

Highly anomalous means highly encouraging, especially at such an early stage of exploration. That’s how Arctic Star Exploration TSXV:ADD characterized its first batch of assays from the Cap property in east-central British Columbia. The news follows last month’s announcement of an extremely rare carbonatite-syenite discovery, suggesting potential for a range of commodities. Now assays for grab samples and the first drill hole show highly anomalous niobium, rare earths and phosphate, the company stated.

Arctic Star Exploration finds “highly anomalous” niobium, rare earths and phosphate at B.C. project

Some intervals of
carbonatite from CAP17-004.

Five selected grab samples assayed 0.2% niobium pentoxide, hitting a peak of 0.96% Nb2O5, while three grab samples brought more than 0.2% total rare earth oxides, peaking at 0.39% TREO. Three samples contained over 5% phosphorus pentoxide with a peak value of 12.62% P2O5.

CAP17-004, the first of four drill holes, showed:

  • 0.35% Nb2O5 over 10.42 metres, starting at 85.24 metres in downhole depth
  • (including 0.63% Nb2O5 over 2.26 metres)

  • 9.94% P2O5 over 19.63 metres, starting at 98.87 metres
  • (including 20.97% P2O5 over 2.55 metres)

  • 0.81% TREO over 2.4 metres, starting at 136.1 metres

True widths weren’t provided. The last interval also showed a peak value of 69 ppb gold and over 1% TREO.

Along with sampling and drilling, the summer program included mapping and prospecting over an area of about three kilometres by one kilometre.

“The discovery of highly anomalous concentrations of niobium, phosphate and REOs at such an early stage in the exploration of the Cap project should be considered highly encouraging,” said consulting geologist Jody Dahrouge. “Future exploration at Cap will follow up on surface samples that contained highly anomalous concentrations of niobium and may be related to drill hole CAP17-004.”

Reporting from their Diagras diamond project in the Northwest Territories late last month, Arctic Star and 60% JV partner Margaret Lake Diamonds TSXV:DIA announced geophysical results that could potentially indicate “the largest kimberlite complex in the Lac de Gras field.” Further geophysics are on the 18,699-hectare property’s spring agenda, with drilling to follow.

As for Arctic Star’s recently acquired Timantti diamond project in Finland, assays released in July from historic core on the White Wolf kimberlite showed 111 microdiamonds. The company had earlier found 58 microdiamonds in an 18.9-kilogram sample taken from the same kimberlite.

Timantti covers part of the Fennoscandian Shield, host to major Russian diamond mines Lomonosov and Grib.

In July the company offered a $1.25-million private placement.

Read Isabel Belger’s interview with Arctic Star president/CEO Patrick Power.

Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

August 29th, 2017

by Greg Klein | August 29, 2017

Borrowing techniques that proved successful at Kennady North, Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD announced geophysical results that potentially expand their Diagras property’s known kimberlites. The partners hold 60% and 40% respectively of the joint venture in the Northwest Territories’ diamond-rich Lac de Gras region, where Margaret Lake acts as operator.

Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

Last spring’s ground program of magnetics, gravity and electromagnetics targeted known kimberlites as well as “unresolved targets generated from public domain data,” the companies stated. Similar techniques have helped Kennady Diamonds TSXV:KDI further its understanding of the Kennady North property’s Kelvin and Faraday kimberlites.

Results dating to 2005 on Diagras’ Jack Pine kimberlite identified a north-south axis extending more than 500 metres, with about four to five hectares at surface. But recent work north of Jack Pine shows a possible new discovery that’s been named Sequoia. Although verification would call for more drilling, the new findings indicate an anomaly that doubles the geophysical footprint, potentially making this “the largest kimberlite complex in the Lac de Gras field,” according to the partners.

Geophysics around Diagras’ Black Spruce kimberlite show anomalous gravity lows up to about 200 metres south and east of a magnetic low and its corresponding diamondiferous drill results by a previous operator. Again, drilling will be necessary to confirm the presence of additional kimberlite.

The partners also reported other geophysical signatures that might indicate additional kimberlite in and around other known kimberlites on the 18,699-hectare property. Further geophysical evaluations are planned for next spring, along with a drill program.

In addition to its Diagras interest, Margaret Lake holds its namesake Margaret Lake project adjacent to Kennady North. In July, Arctic Star announced plans to acquire the Timantti project in Finland, where due diligence has confirmed the presence of micro-diamonds. Arctic Star also holds the CAP rare earths and rare metals prospect in east-central British Columbia. Early this month the company announced discovery of a carbonatite-syenite complex, an extremely rare occurrence potentially associated with “a plethora of commodities” and “the dominant source for niobium and rare earth elements,” the company stated.

Late last month Arctic Star offered a private placement up to $1.25 million.

Read Isabel Belger’s interview with Arctic Star president/CEO Patrick Power.

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

July 26th, 2017

by Greg Klein | July 26, 2017

Just weeks after announcing plans to take on a diamond project in Finland, Arctic Star Exploration TSXV:ADD has found further encouragement by reanalyzing previous work. Recent assays on 48.65 kilograms of historically extracted split core showed 111 microdiamonds. The results represent approximately 52.7 metres of core from the Timantti property’s White Wolf kimberlite.

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

A due diligence program reported earlier this month confirmed 58 microdiamonds from an 18.9-kilogram White Wolf sample.

With most of the world’s diamond-bearing kimberlites showing an exponential relationship between small and large stones, the company plans to gather enough caustic fusion samples to evaluate the property’s diamond size distribution. Following ground geophysics, Arctic Star hopes to drill Timantti for additional samples, delineating the kimberlites’ size and shape.

Looking at an entirely different range of commodities, the company last week sent a drill crew to the Cap project in east-central British Columbia’s Rocky Mountain Rare Metal Belt. Tantalum, niobium and rare earths are among the targets on the 2,825-hectare property. In 2010 sampling results included 0.14% Nb2O5, 3,191 ppm zirconium and 547 ppm total rare earth elements. More sampling the following year brought grades including 0.27% Nb2O5 and 773 ppm TREE, while two historic, non-43-101 samples showed 0.13% and 0.1% TREE.

Arctic Star also holds a 40% interest in the Northwest Territories’ Diagras diamond project, where JV partner Margaret Lake Diamonds TSXV:DIA conducted a short geophysical program last May.

Arctic Star sees new diamond frontier in Finland

July 12th, 2017

by Greg Klein | July 12, 2017

A plan that so far has been a year in the making would have Arctic Star Exploration TSXV:ADD shift its diamond exploration focus from northern Canada to northern Finland. The Timantti (Finnish for “diamond”) project would begin with exploration rights over 243 hectares of kimberlites, with an additional 95,700 hectares of land to come under an exploration reservation permit for which the company has applied.

Arctic Star sees new diamond frontier in Finland

Small bulk samples dating to 2005 have revealed diamonds, while a more recent due diligence program confirmed 58 small stones in an 18.9-kilogram sample from the project’s White Wolf kimberlite.

The Wolf kimberlites lie on the Fennoscandian Shield, which also hosts the major diamond mines Lomonosov and Grib in Russia’s Arkhangelsk region.

Because kimberlites tend to occur in clusters, the Wolf kimberlites could indicate a more extensive group, according to Roy Spencer, who discovered the Wolf kimberlites. Data in the public domain shows a “cloud” of kimberlite indicator minerals across an approximately 80-kilometre-wide area roughly centred on the Wolf kimberlites, the company added. “The exploration reservation will allow Arctic Star to explore the entire region,” Spencer said.

A diamond exploration veteran with De Beers and other companies, Spencer “was largely responsible for the discovery of the world-class Grib kimberlite,” Arctic Star added. Spencer joins the company as a director.

On closing the acquisition, Arctic Star plans magnetic, gravity and EM surveys prior to drilling and a subsequent bulk sample on the road-accessible property, as well as regional airborne surveys.

Ranking fifth globally in the annual Fraser Institute survey of overall mining investment attractiveness, Finland boasts arctic infrastructure in relative profusion to northern Canada.

The deal would involve Arctic Star taking over Foriet Oy, a Finnish company that would become a wholly owned subsidiary, for 14.5 million shares at a deemed price of $0.20.

Arctic Star also welcomed Scott Eldridge’s appointment to the board. A co-founder and president/CEO of Euroscandic International Group, which provides accounting and investment banking services to resource companies, he has raised over $500 million in equity and debt for mining-related projects around the world.

Last May Arctic Star announced a brief geophysical program at the Diagras diamond project in the Northwest Territories, with work expected to finish mid-month. The company has a 40% stake in the JV, with Margaret Lake Diamonds TSXV:DIA holding the rest and acting as project operator.

Margaret Lake, Arctic Star begin geophysical search for NWT diamonds

May 9th, 2017

by Greg Klein | May 9, 2017

Modern geophysics and a new approach come to a property with diamondiferous kimberlites in the Northwest Territories’ prolific Lac de Gras region, as Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD start work on their Diagras JV. Expected to finish in mid-May, the program consists of ground gravity, magnetics and Ohm Mapper EM.

Margaret Lake, Arctic Star begin geophysical search for NWT diamonds

Margaret Lake and Arctic Star hold a 60% and 40% stake respectively, with Margaret Lake acting as project operator.

The companies hope to find non-magnetic evidence that was missed in the 1990s when De Beers flew airborne surveys that identified the property’s magnetic kimberlites.

Diagras hosts 13 known kimberlites, most of them diamondiferous, according to historic data. The property’s Jack Pine kimberlite shows “multiple phases with different geophysical responses,” the JV stated. “It is hoped that our planned surveys will reveal similar geology around the other pipes. There is also a good chance to find new kimberlites using these new ground geophysical techniques.”

In November the JV attributed those techniques to Kennady Diamonds’ (TSXV:KDI) progress at Kennady North, Lac de Gras’ most advanced exploration project.

Results of the Diagras program will be considered for follow-up drilling.

In January Arctic Star applied for a drill permit for its 100%-held CAP niobium-tantalum-REE property in north-central British Columbia. The company raised over $1.47 million in private placements that closed late last year.

Arctic Star looks to B.C. for rare metals and rare earths

January 17th, 2017

by Greg Klein | January 17, 2017

A previously acquired property gets new attention as Arctic Star Exploration TSXV:ADD applies for a drill permit to search for niobium, tantalum and rare earth elements in central British Columbia.

Arctic Star looks to B.C. for rare metals and rare earths

Field work during 2010 on the 2,825-hectare CAP project found 481 to 981 parts per million niobium, 1,125 to 3,191 ppm zirconium, over 100 ppm lanthanum, over 100 ppm cerium and over 50 ppm neodymium. Two historic, non-43-101 samples returned strongly anomalous results of 0.13% and 0.1% rare earth elements, the company stated.

A circular magnetic anomaly of about three to five kilometres’ diameter could indicate a carbonatite or similar intrusion at depth, Arctic Star added. “Carbonatite-related deposits are a major host for rare metals, such as niobium and tantalum, and rare earth elements.”

Located about 80 kilometres from Prince George, CAP can be reached by logging roads during the summer and helicopter year-round.

In December the company closed a second tranche of financings totalling $1.47 million, including $300,000 of flow-through earmarked for CAP.

In November Arctic Star announced a JV with Margaret Lake Diamonds TSXV:DIA on their newly compiled Diagras property in the Northwest Territories’ diamondiferous Lac de Gras region.