North Arrow Minerals Inc. March 5 announced the start of 2018 exploration drilling at Loki, a diamond project in the Lac de Gras region of Northwest Territories.

Roughly 30 kilometers southwest of the Ekati Mine and 24 kilometers west of the Diavik Mine, Loki is found in a region known for its rich diamond deposits.

"Clearly, a very good place to be to make new discoveries and the discoveries we do make have a very good chance of being diamondiferous," said North Arrow President and CEO Ken Armstrong.

North Arrow narrowed down the drill targets at Loki with surface sampling completed in 2016 and geophysical surveys carried out last year.

The 1,000-meter drill program will evaluate the size potential and internal geology of EG05, a diamond-bearing kimberlite on the south shores of Lac de Gras.

EG05 was tested with three holes in 1999. All three holes, all of which cut kimberlite over their entire length, did not find the edges of the pipe. North Arrow plans to drill the kimberlite with one hole to gain a better understanding of diamond distribution within the kimberlite. The company also wants to test a magnetic low geophysical anomaly immediately to the east that could represent an expansion, or another phase, of the kimberlite.

The drill program will test other targets on the property.

"The main focus of the program is test some undrilled targets and try to make a new discovery," Armstrong said.

Target 912, a geophysical anomaly east of EG05, is one of the targets North Arrow plans to test.

Target 465, a very prominent circular geophysical anomaly at what appears to be the up-ice end of a diamond-bearing kimberlite indicator minerals train, is another exploration drill target to be drilled.

Target 853, which targets a "disruptive" geophysical anomaly at the upper end of another kimberlite indicator train further southwest, is another area the company wants to drill this spring.

"We have done a lot of the groundwork now and we have some targets that need to get drill tested," said Armstrong.

The Loki drilling is expected to take three weeks to complete.

Funding for the program is being supported, in part, by the Northwest Territories Mining Incentive Program.

–SHANE LASLEY