Arctic Star Diamond Corp.
TSX VENTURE : ADD

Arctic Star Diamond Corp.

October 15, 2008 11:33 ET

Arctic Star Diamond Corp. Completes Phase 1 Drill Testing of the Providence Nickel Discovery, Northwest Territories

14 of 15 Drill Holes Have Intersected Multiple Mineralized Intervals Per Hole Totaling Up to 25 Meters of Massive, Net-Textured and Disseminated Mineralization and Up to 4.95 Meters of Massive Sulfide Discovery Has Drill-Proven Sulfide Intercepts Over 450 Meter Strike Length

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2008) - Arctic Star Diamond Corp. (TSX VENTURE:ADD) ("Arctic Star" or the "Company") is pleased to announce it has completed its Phase 1 drilling program at the Providence Nickel discovery Northwest Territories (NT). The discovery is located 36 kilometres west of the Ekati diamond mine, 1.2 kilometers south of Destaffany Lake and is centrally located within Company's Credit Lake claim block. It is the first magmatic Nickel-Copper-Cobalt-PGE massive sulfide mineralization found in the central Slave Province.

Arctic Star has now drilled 15 holes into the Providence Discovery, with a total meterage of 1650m. All but one drill hole intersected mineralization. The most extensive massive sulphide intercept of 4.95m was in drill hole 08CR-18, the most continuous mineralization was in drill hole 08CR-23 which reported in total 41.75m of massive, net-textured and disseminated mineralization, 25m of which was continuous and contains 3.9m of massive sulphide. The mineralized intervals observed in each hole are summarized in Table 1(below). Assays for the bulk of this work are awaited.

Figure 1 (below) shows the interpreted geology based on the drill program and surface mapping and geophysics. This figure also serves to illustrate the location and deposition of the drill holes. This Phase 1 drill program is now completed. Initially drilling was based on 30m step outs, but as the on-site geological team began to gain an understanding of the structure and stratigraphy and as further ground magnetic and E M data were gathered, these step-outs became larger. Assay results from the first 2 holes 08CR-10 and 08CR-11 have been received and have confirmed Nickel, Cobalt, Copper and platinoid mineralization, (see news releases dated July 23rd and August 13th). Based on visual logging of the core and support by elevated nickel readings from the onsite XRF mobilab, drilling has now confirmed the mineralization is continuous for 450m along strike and to a 150m depth. Mineralization is still open at depth and along strike to the east. To the west, the mineralization appears to be faulted bounded, however the possibility remains that drilling and mapping may find extensions in this direction as well.

Preliminary electron microprobe work on polished and thin sections of the mineralization by R.L. Barnett Geological Ltd. has demonstrated abundant pentlandite and chalcopyrite grains (100-500 microns) hosted in massive pyrrhotite. Within the pentlandite there are many examples of smaller grains of Cobaltite, Bismuth-Palladium Tellurides. There are also grains with iridium cores and Rhodium rims within the Cobaltite.

The Nickel-Copper-Cobalt-PGE mineralization is hosted within and at the base of an ultramafic flow/ intrusive sill sequence. These are interpreted to be Komatiitic lavas / sills, now metamorphosed to the upper amphibolite facies. The ultramafic host to the mineralization is stratiform to a basaltic hanging wall and a meta-sediment footwall. The hanging wall basaltic flows contain intercalated sulphide-rich units.

To view Figure 1. Interpreted geology, please click on the following link: http://media3.marketwire.com/docs/1014add.jpg



Table 1.
-------------------------------------------------------------------------
Total Mineralized Total Massive
Hole Intervals Mineralized Sulfide
Azim/Dip Depth From To Intervals Intervals
Hole # Degrees (m) (m) (m) (m) (m)
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-------------------------------------------------------------------------
08CR-10 180/-45 142.3 102 134.7 32.7 0.2, 0.6
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-11 190/-45 177 141.4 152.4 11 1.65
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-12 190/-45 143.24 91.44 99.7 8.26 1.48
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-13 190/-55 159.4 97 105.2 8.2 1.05, 1.25,
1.00
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-14 190/-45 181.34 146.55 154.65 8.1 0.3
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-15 190/-45 176.7 135.65 141.45 5.8 0.01
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-16 190/-45 91.4 Na na na na
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-17 190/-45 112.7 51.9 55.9 4 0.85
-------------------------------------------------------------------------
58.25 66.3 8.05 na
-------------------------------------------------------------------------
73.94 77.15 3.21 na
-------------------------------------------------------------------------
78.1 86.38 8.28 0.94, 3.05
-------------------------------------------------------------------------
97.4 99.9 2.5 2.5
-------------------------------------------------------------------------
Total 26.04
-------------------------------------------------------------------------
08CR-18 190/-52 137 53.3 64.8 11.5 1.6
-------------------------------------------------------------------------
82.1 89 6.9 na
-------------------------------------------------------------------------
98.2 103.45 5.25 4.95
-------------------------------------------------------------------------
Total 23.65
-------------------------------------------------------------------------
08CR-19 190/-69 138.4 57.3 60.05 2.75 2.25
-------------------------------------------------------------------------
61.15 72.45 11.3 na
-------------------------------------------------------------------------
90.35 92.3 1.95 na
-------------------------------------------------------------------------
125.75 128.4 2.65 2.65
-------------------------------------------------------------------------
Total 18.65
-------------------------------------------------------------------------
08CR-20 190/-45 74.58 42.25 43.7 1.45 na
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-21 190/-45 70.1 19.6 21.5 1.9 0.9, 0.75
-------------------------------------------------------------------------
58.1 58.9 0.8 0.5
-------------------------------------------------------------------------
59.5 60.7 1.2 0.95
-------------------------------------------------------------------------
Total 3.9
-------------------------------------------------------------------------
08CR-22 190/-45 25.9 6.6 6.9 0.6 na
-------------------------------------------------------------------------
6.9 8.4 1.5 1.25
-------------------------------------------------------------------------
8.4 8.6 0.2 na
-------------------------------------------------------------------------
Total 2.3
-------------------------------------------------------------------------
08CR-23 231/-50 118.1 30.1 33.7 3.6 na
-------------------------------------------------------------------------
48.85 54.3 5.45 na
-------------------------------------------------------------------------
59.1 66.3 7.2 na
-------------------------------------------------------------------------
70.3 91.4 21.1 na
-------------------------------------------------------------------------
91.4 95.3 3.9 3.6
-------------------------------------------------------------------------
95.3 95.8 0.5 na
-------------------------------------------------------------------------
Total 41.75
-------------------------------------------------------------------------
08CR-24 190/-45 123.8 63.7 71.63 7.93 0.25, 0.35,
0.56
-------------------------------------------------------------------------

-------------------------------------------------------------------------
08CR-25 190/-58 77.72 68.3 71.05 2.75 2.01
-------------------------------------------------------------------------


Field observations suggest that the metasediment footwall (predominantly quartzites) are the basal unit of the Central Slave Cover Sequence and are unconformable on top of basement gneiss. All lithologies are reported as Archean in age. The quartzites locally contain fuchsite (chrome mica) where proximal to the mineralization. The stratigraphic succession in the discovery area is consistent with that proposed for the Central Slave Cover Sequence through work completed by the Geological Survey of Canada. This stratigraphy strikes E-W and dips to the north at between 50-70 degrees. Drilling was designed to intersect the mineralization perpendicular to strike and at a high angle so that most of the intervals shown in Table 1 can be considered as being within 15% of true thickness.

Drilling was completed at the end of August. In total 187 half core samples have been sent for Nickel, Copper, Cobalt and platinoid analysis at SRC laboratories in Saskatoon. Additionally, 84 reconnaissance rock chip samples and 477 soil samples collected from the project area are also being assayed. Final results for all samples will be reported when received.

The Company's land tenure at Credit Lake envelopes approximately 21 kilometers of strike of the same geological terrain as is present at the discovery site. Contained within this strike distance are multiple high priority targets developed from 2008 reconnaissance mapping and sampling and from the results of its VTEM survey. The company plans to resume exploration here in 2009. There is reasonable infrastructure in the area, due to the proximity of the Diavik and Ekati diamond mines which are serviced by the winter ice road. Exploration will recommence with the opening of this road.

The Qualified Persons, as defined by National Instrument 43-101, Mr. Kevin Kivi and Mr. Michael Senn have reviewed the content of this news release.

On Behalf of the Board of Directors

Patrick Power, President and CEO

Arctic Star Diamond Corp.

This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arctic Star Diamond Corp.
    Patrick Power
    President and CEO
    (604) 689-1799
    (604) 689-8199 (FAX)