Arctic Star Diamond Corp.

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NR farm in REE's tp 50%

over 13 years ago

Tue Aug 31, 2010
Arctic enters into an option agreement with Big Red Diamond Corp. on a rare earth element property near Sept-Iles, Que.

Arctic Star Diamond Corp. is pleased to announce that it has entered into an option agreement with Big Red Diamond Corp. ('Big Red') on the J6L1 Rare Earth Elements ('REE's") project located 52 kilometers 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.

As previously announced by Big Red in a news release dated December 8th, 2009, Big Red commissioned an airborne survey in September 2009 on its property consisting of 86 claims or approximately 4,715 hectares. The airborne survey was carried out by GeoData Solutions GDS Inc. using a high sensitivity magnetometer to map geology and structure using a spectrometer to map radioactive minerals. An independent interpretation of the airborne survey was subsequently compiled by geological consultant Dr. Danielle Giovenazzo, PhD, PGeo.

The findings of the report showed several anomalous areas outlined within the survey. The high-resolution spectrometric and magnetometer survey showed the presence of a circular feature, measuring five by five kilometers, with a highly magnetic centre and annular fault, or ring dikes, marking the outer periphery of this complex. Another circular feature was partially covered and is located in the eastern portion of this survey. These circular magnetic patterns are similar to those associated with other REE properties such as Quest Rare Minerals Ltd. Misery Lake project. Regional geological maps indicate the J6L1 magnetic feature is associated with a monzonite intrusion. However, due to the presence of niobium, zirconium and other REEs, it is likely that this intrusion has been misidentified in the past.

Based on the encouraging conclusions of the airborne survey, Arctic Star will actively participate in further developing this promising property. Further compilation of all of the historical exploration work conducted by SOQUEM in the area will be completed in the first part along with a prospecting and sampling field campaign to follow-up on some of the anomalies identified. In the second part, Arctic Star will proceed with the verification of the local geology followed by mapping and drill testing worthwhile targets.

Rare earth elements (REE), which include minerals such as dysprosium, terbium, thulium, lutetium and yttrium, are widely used and indispensable in the fields of electronics, aviation, atomic energy, and mechanical manufacturing. They are essential elements to many of the new emerging green technologies such as hybrid and electric vehicles, and wind power generation. Further recent Chinese REE export restrictions have fueled worldwide concerns and interest for alternative REE deposits.