Star Diamond (TSX: DIAM) announced Monday it has gained full ownership of the Buffalo Hills project in north-central Alberta by acquiring the remaining 50% interest it did not own from Canterra Minerals (TSXV: CTM).
As consideration for Canterra’s half of the project, Star Diamond will issue 17.5 million common shares for a total payment of C$1.1 million. Canterra is also granted a 1% royalty interest in the diamond project.
Located approximately 400 km northwest of Edmonton, Buffalo Hills includes 21 mineral leases covering 48 square kilometres and is a significant and accessible field of diamond-bearing kimberlites, with similarities to the Fort á la Corne kimberlites in Saskatchewan, the company said.
According to Canterra, this region hosts the third-largest district of diamond-bearing kimberlites in Canada, after Lac de Gras in the Northwest Territories and Fort à la Corne.
The property is located in the Buffalo Hills kimberlite district, which contains at least 38 individual kimberlite bodies, of which 26 are diamond bearing and a number of which outcrop at surface, it said. Exploration on these kimberlites started in 1996, and small parcels of diamonds have been collected from various exploration programs on many of those considered most prospective.
“In early 2023, we dusted off the file on this property and conducted an examination of the existing diamond parcel that was collected from a bulk sample previously taken in 2010,” Star Diamond CEO Ewan Mason said in a news release.
“Our diamond specialist thoroughly analyzed the diamonds and we were astonished to find not only anomalous levels of Type IIa diamonds in the sample but also a presence of fancy yellow diamonds (K6 yellow diamonds) with elevated modelled diamond prices.”
“It became clear to us that further work needed to be done and with a number of pipes at surface we believe that a larger bulk sample should be taken to determine how many of the 38 pipes on the property may be economic. Our plan would be to eventually extract a bulk sample and ship it to Fort à la Corne and run the sample through our on-site bulk sample plant,” he added.
In March, Star Diamond acquired Rio Tinto Exploration Canada’s 75% interest in Fort à la Corne, and now owns 100% of the project. Last year, the company chose the trademark “Kīwētin” (pronounced “kee-way-tin”), meaning north wind in the Cree language, for its Fort à la Corne diamonds.
