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Arctic Star Exploration Corp (3)
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Close 2018-08-23 C$ 0.095
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GGL Resources to acquire 60% of Arctic Star's Stein

2018-08-23 08:55 ET - News Release

See News Release (C-GGL) GGL Resources Corp (3)

Mr. David Kelsch of GGL reports

GGL RESOURCES CORP. ENTERS OPTION AGREEMENT FOR STEIN DIAMOND PROJECT NUNAVUT, CANADA

GGL Resources Corp. has entered into an option agreement with Arctic Star Exploration Corp. to earn a 60-per-cent interest in Arctic Star's wholly owned Stein diamond project in Nunavut, Canada.

The Stein diamond property consists of four contiguous prospecting permits covering an area of 1,065 square kilometres on the Southern Boothia Peninsula, 45 kilometres from tide water. It is located 85 kilometres northwest of the community of Taloyoak, Nunavut, which is serviced daily by commercial flights and seasonally by barge.

Stein is an advanced diamond exploration project having the benefit of numerous successive exploration campaigns and over $1.5-million in previous exploration expenditures. This historic work included multiple seasons of heavy mineral sampling in which kimberlitic indicator minerals were followed in the up-ice direction to a region believed to be the source area. This area was subsequently flown with detailed airborne magnetic surveys. No kimberlite drill testing has been conducted on the project to date.

The indicator mineral suite contains grains that are indicative of diamond inclusion chemistry showing high chrome, low calcium G10D pyrope garnets. The detailed airborne magnetic surveys have identified numerous high-priority targets that have signatures similar in characteristics to kimberlites found elsewhere in Canada's North. The Stein project is further complemented with the existence of a major structural feature identified on regional government airborne magnetic surveys which is greater than 100 kilometres in length and traverses the area of the project containing the high-priority targets. In fields elsewhere, kimberlites can be geologically observed exploiting larger structural features and utilizing them as conduits for emplacement.

The nearest known kimberlite discovery is over 230 kilometres to the southeast and perpendicular to the regional ice flow direction. The distance and direction greatly reduce the potential for the Stein mineral grains being an overprint from this field. A Stein project presentation is available at the company website.

Historically, the Stein project was identified and advanced by previous explorers from 2004 to 2008 with a small amount of additional work in 2011. The global financial crisis in 2008 and resulting inability to finance exploration programs essentially halted significant advancement of the project as the next step was to drill test the compelling geophysical targets with associated supporting geochemistry. The lack of advancement caused the mineral tenure to lapse. Arctic Star reacted to this opportunity and acquired the mineral rights in 2015. Arctic Star's recent focus and deployment of resources have been the continuing successful exploration of the Timantti diamond project in Finland, leaving Stein in portfolio yet to be advanced to drill testing.

GGL can acquire a 60-per-cent undivided interest in the Stein project by conducting detailed ground geophysics on high-priority airborne targets and discovering kimberlite by drilling, trenching or in outcrop. Once kimberlite is discovered, a joint venture is triggered with an initial 60/40 contributing relationship.

The company is pleased to be partnered with Arctic Star on this compelling diamond project that is on the cusp of potentially delivering a new, yet undiscovered Canadian kimberlite field. The project has a Class A land use permit that includes drilling.

Nunavut represents a favourable mining and exploration jurisdiction both globally and within Canada. Canadian junior diamond explorers such as Peregrine Diamonds Ltd. (Chidliak project), Dunnedin Ventures Inc. (Kahuna project) and North Arrow Minerals Inc. (Mel and Nuajaat projects) have successfully conducted drilling programs in Nunavut during the 2017 to 2018 seasons. Nunavut currently has three operating mines, one of which received operational status as recently as 2017.

The technical information in this news release has been approved by David Kelsch, PGeo, president of GGL Resources and a qualified person for the purposes of National Instrument 43-101.

About GGL Resources Corp.

GGL is a Canadian-based junior exploration company focused on diamond exploration in Canada's North with key projects in Nunavut as well as the Lac de Gras diamond district in the Northwest Territories. Lac de Gras is home to Canada's first two diamond mines, the world-class Diavik and Ekati mines discovered in the 1990s. In addition to GGL's key focus of diamond exploration, it holds diamond royalties on mineral leases in close proximity to the Gahcho Kue diamond mine in the Northwest Territories. The company also holds in portfolio several encouraging base metal and gold projects in British Columbia and Northwest Territories.

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