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Arctic Star Exploration Corp V.ADD

Alternate Symbol(s):  ASDZF

Arctic Star Exploration Corp. is a natural resource company. The Company is a diamond explorer engaged in the acquisition, exploration, and development of mineral properties. Its projects include Diagras Diamond Project and Timantti Diamond Project. Diagras Diamond Project is located in the north-eastern part of the prolific Lac de Gras kimberlite field, approximately 22 kilometers (km) north-northeast of the Diavik diamond mine and 36 km east of the Ekati diamond mine in the northwestern territories of Canada. Diagras Property consists of 58 contiguous claims with an area of approximately 48,346 hectares. The Timantti Project is located in Finland, approximately 17 km away from the town of Kuusamo. The Timantti project, owned 100% by the Company, consists of two Exploration permits, the 243 Ha Exploration Solavaara Permit and the 882 Hectares Vaimouso permit totaling 1125 Ha. The Project is also comprised of two Diamond Bearing Kimberlites: the Black Wolf and White Wolf Kimberlite.


TSXV:ADD - Post by User

Comment by Agilanton May 08, 2021 12:51am
198 Views
Post# 33158991

RE:Price target

RE:Price targetI think you have to think in terms of market capitalization at each stage of discovery. Were ADD is now (kimberlite discovery) the market cap is currently about 22 million. I think there is a lot of speculation built into the price right now(which is not unusual when there is an active drill on the ground) This current valuation is without knowing if the kimberlite grade is any good, and you won't know that until you get the lab results back to see how many diamonds (if any) are in the core of each particular kimberlite. If the diamond grade comes back good (ie: there are good sized diamonds in the core and enough of them...good size meaning stones larger than .85mm diameter and enough being the weight of stones(carats) in the sample to give you a grade of something larger than 1 carat/tonne). If the lab results come back with good diamond counts, then I think you could see the market capitalization of ADD shoot up to 50-100 million. (approx $0.50 to $1.00 share price). If the lab results are unimpressive and the drill program is over, then don't be surprised to see ADD's market cap drop to something like 5 million or less. If they do happen to have some good lab results with decent diamond counts, then the next step would be to do additional drilling and also a bulk sample on the kimberlites to get higher confidence in the grade of each kimberlite. Again you are looking for high diamond counts with a grade higher than 1 carat/tonne. If ADD truly has found any economic diamondiferous kimberlites that can be confirmed through a bulk sample, then the market cap could go up anywhere to 200-600 million. Approximately $2-$6 /share. At this point they likely would have attracted the attention of one of the major mining outfits and would look to sell the mining claims to them. This is just my opinion and based on my limited knowledge of mining and finance and following some of these small diamond plays for a while. Good luck to all. Hopefully the lab results come back impressive.
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