Arctic Star Exploration Corp.
TSX VENTURE : ADD

Arctic Star Exploration Corp.

August 05, 2015 15:27 ET

Arctic Star Reports on T-Rex Property

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 5, 2015) - Arctic Star Exploration Corp. ("Arctic Star" or the "Company") (TSX VENTURE:ADD) plans to commence diamond exploration at the T-Rex Property ("T-Rex" or the "Property"). The T-Rex Property consists of 62 contiguous claims staked by Arctic Star, with an area of 54,000 hectares. The property is located in the north-eastern part of the prolific Lac de Gras kimberlite field, 22km NNE of the Diavik diamond mine and 36km east of the Ekati diamond mine in NWT Canada. The Company has verified through research and compilation that the property hosts over a dozen kimberlites, most of them diamondiferous. Arctic Star's research and compilation of historical data in the public domain confirms that T-Rex is a property of merit that deserves additional exploration.

The Property is situated on a corridor of economic diamond deposits that include kimberlite pipes A-21, A418, A154S, A154N, A841, Lynx, Misery, Point Lake, and Jay. This corridor extends towards the T-Rex Property and the Hardy Lake kimberlite cluster, which consists of 25 kimberlites. The closest economic kimberlite to the T-Rex property is Jay, located 10 km SW, in the Buffer Zone joint venture between Dominion Diamonds Corp (64.3%) and Archon Minerals Ltd (34.7%). The Jay Project Pre-feasibility study (2015) reports a resources estimate of of 45.6 Mt with grade 1.9 Ct/t for 84.6 million carats. Jay will be a stand-alone open-pit operation that is expected to supply 4.3 dry metric tonnes per annum for 11 years beyond the current projected closure of the Ekati Diamond Mine. Construction is scheduled to commence in 2016.

Historical work on the T-Rex Property dates back to 1992 when the area was known as the Hardy Lake Property. De Beers Canada Inc. (De Beers) discovered 25 kimberlites that range from 0.2-5 Ha in size on their Hardy Lake property. Nineteen bodies were tested for microdiamonds and 17 returned diamonds. Kimberlite descriptions from research papers indicate kimberlites of the Hardy Lake cluster have similar geology and geophysical signatures to other Lac de Gras kimberlites. Hardy Lake kimberlites sampled the same diamond-rich lithosphere as economic kimberlites at Lac de Gras, but an economic kimberlite has not yet been discovered in this cluster. De Beers added kimberlites Penelope, Petra and Hanna in 2003 which range in size from 1.8-3.5 Ha but did not disclose the locations of the 2003 discoveries. From De Beers 2003 land use permit (public information) shows 16 of 17 planned core holes are located on the current T-Rex property, and therefore there is a high probability that Penelope, Petra and Hanna also occur on the Property, although this cannot be confirmed.

Twelve Kimberlites are confirmed to occur on Arctic Star's T-Rex Property from public records:

KIMBERLITE NAME Details currently known.
1 Lyndsey No information available.
2 Hardy Lake HL-04 (TAZ) Magnetic low under lake, possibly HK
3 Dodi No information, near EM conductor in lake
4 Hardy Lake HL-02 VK, rVK, wood, EM, weak -ve MAG, >150m in size or twin pipe present to east
5 Kong W MAG low, altered HK, 22m intercept in -60° inclined core hole
6 Kong E MAG low, altered HK, few KIMs, 3 intercepts in -67° inclined core hole
7 Naomi No information available, pyrope KIMs down-ice
8 Nadine No information available, pyrope KIMs down-ice
9 Suzanne No information available
10 Black Spruce Recent gravity survey increased pipe size, significant diamonds
11 Jack Pine Large 5 Ha pipe, significant diamonds, excellent chemistry
12 Krista No information available

Majescor Resources Inc. (Majescor) optioned Hardy Lake from De Beers in September, 2004 and committed $10M in exploration work over 5 years, with annual minimum expenditure of $1M. The option lasted 28 months and $992,000 was spent on the property according to Majescor financial statements. Drilling totaled 764m, testing targets recommended by De Beers, including 2 core holes sampled the southern lobe of the Jack Pine kimberlite, and at least one more sampled Black Spruce which significantly increased the size of both kimberlites. During Majescor's exploration at Hardy Lake significant data including diamond data that was confidential under De Beer's watch. Majescor reported over ten drill-ready geophysical targets, but is believed to have drill tested only four.

Jack Pine is the largest kimberlite on the T-Rex property with 500m north-south axis, and estimated surface area of 5 Ha. Majescor reports excellent mineral chemistry and significant diamond content at Jack Pine.

Sample
Weight
(kg)
Diamond Size (mm) Stones
Per
20 kg
1 0.5 0.3 0.212 0.15 0.104 0.074 -0.074 Total
Jack Pine 436.26 0 0 4 12 42 89 248 177 572 26

(Source: De Beers Canada from Majescor Resources News Release, March 30, 2005)

De Beers diamond results are not 43-101 compliant and do not conform to CIM diamond reporting standards. These results are considered relevant as De Beers is an industry leader in diamond exploration and diamond mining.

In 2005 Majescor tested Jack Pine with two core holes and submitted 359.75 kg of kimberlite for microdiamond recovery.

Sample
Weight
(kg)
Diamond Sieve Size (mm) Total
Per
20 kg
0.425 0.300 0.212 0.150 0.106
Jack Pine 359.75 2 6 25 80 186 299

(Source: Majescor Resources News Release, August 4, 2005, Processing by SRC)

Majescor results are CIM and 43-101 compliant, and were completed by Saskatchewan Research Council, which is an ISO accredited laboratory. The largest diamond recovered from Majescor's Jack Pine drill program measured 0.78 x 0.70 x 0.52 mm.

Majescor also reported "a large extension of the Black Spruce pipe" indicated by ground gravity geophysical surveys. Gravity surveys and other advanced geophysical techniques have discovered or increased tonnage previously known diamond-bearing kimberlites elsewhere in the Slave Craton.

Sample
Weight
(kg)
Diamond Sieve Size (mm) Total
Per
20 kg
0.425 0.300 0.212 0.150 0.106
Black Spruce 167.15 0 2 2 3 7 14

(Source: Majescor Resources News Release, December 21, 2005, Processing by SRC)

Majescor, who acquired and reviewed De Beer's extensive dataset, reported 26 high interest areas defined by anomalous kimberlite indicator mineral samples and kimberlite float. Majescor reported "large, very prospective sectors of the property have been inadequately sampled" and "significant potential to find new pipes" (Majescor Resources, 2005 Annual Report). Majescor also reports that many De Beers discoveries are defined by only a single core hole.

De Beers collected 2,335 till samples (1000 were positive for KIMs), analysed 29,123 minerals, flew 16,709 line kilometers of airborne geophysics, completed 144 geophysical grids, and drilled 137 drill holes. About 65% of De Beers data was filed as assessment work, and has been acquired and compiled by Arctic Star, which forms a strong basis for future exploration.

De Beers operated from a 20-man camp located on Hardy Lake (removed 2010), which was located on the Tibbett-Contwoyto Winter road, which services mines in NWT and NU. The winter road is expected to be ploughed as far as the Jay kimberlite for decades to come, which will lower exploration costs at T-Rex in future.

Buddy Doyle Bc App Sc Geol. MAUSIMM, the author of this press release, has 31 years' experience in geology, with much of this time focused on successful diamond exploration. Kevin Kivi, PGeol and Qualified Person, approves the technical content of this press release.

ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR EXPLORATION CORP.

Patrick Power, President

Forward-Looking Statements:

This news release contains "forward-looking statements" including but not limited to statements with respect to Arctic Star's plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to general economic and market conditions; closing of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. Although Arctic Star has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Arctic Star undertakes no obligation or responsibility to update forward-looking statements, except as required by law.

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.

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