Toronto-listed Star Diamonds has announced it will buy the remaining 50% stake in the Buffalo Hills project, in Alberta, gaining full ownership of the asset.

Early last year, Star dusted off the file on Buffalo Hills and conducted an examination of the existing parcel that was collected from a bulk sample previously taken in 2010.

CEO Ewan Mason reports that diamond specialists found not only anomalous levels of Type IIa diamonds in the sample, but also the presence of fancy yellow diamonds with elevated modelled 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 says.

Buffalo Hills includes 21 mineral leases covering 4 800 ha and is a significant and accessible field of diamond-bearing kimberlites, with similarities to the Fort á la Corne kimberlites in Saskatchewan.

Star will acquire the remaining 50% interest in Buffalo Hills from TSX-V-listed Canterra Minerals for 17.5-million shares, representing an implied purchase price of C$1.1-million.

“We are confident that Star Diamond will be able to maximise the value of the Buffalo Hills diamond project as a dedicated diamond explorer with complementary assets in the region. Canterra is now focused on advanced stage copper and gold exploration in the central Newfoundland mining district and looks forward to maintaining its exposure to the project as a Star Diamond shareholder. We will be watching developments with much interest as our equity participation in Star Diamond provides our company with exposure to future success,” says Canterra president and CEO Chris Pennimpede.