Canada-based explorer North Arrow Minerals has inked an agreement with Arctic Star Exploration to secure an option to earn a 55% stake in the Redemption diamond project in the Northwest Territories.
As per the terms of the agreement, North Arrow will have to pay exploration costs of C$5m ($4.75m) within 1 July 2013 as the consideration against 55% interest in the Redemption project.
In addition, the company is mandated to commit investment of about C$1m ($950,000m) before 1 July 2014. The cost of the current airborne gravity survey will be included in the first year expenditures.
The 11,500h Redemption project is located within the Lac de Gras diamond district. The project is believed to have extensive exploration information gained from previous works including airborne and ground geophysical surveys, till geochemical sampling and a limited amount of drilling.
Fugro Airborne Surveys is currently conducting a helicopter-borne gravity survey on the project using their proprietary Falcon airborne gravity gradiometer system.
The company intends to spot potential kimberlite targets from the gravity data along with existing datasets to undertake an exploration work including till sampling, ground geophysical surveys and, if warranted, drilling, the company stated.