Canada’s Most Active Diamond Explorer NAR investor presentation.pdf · Corporate Presentation...
Transcript of Canada’s Most Active Diamond Explorer NAR investor presentation.pdf · Corporate Presentation...
TSXV:NARTSXV: NAR
Corporate Presentation
April 30, 2019
Canada’s Most Active Diamond Explorer
This presentation contains projections and forward looking information that involvevarious risks and uncertainties, including, without limitation, statements regarding thepotential extent of mineralization, resources, reserves, exploration results and plans andobjectives of North Arrow Minerals Inc. These risks and uncertainties include, but arenot restricted to, the amount of geological data available, the uncertain reliability ofdrilling results and geophysical and geological data and the interpretation thereof andthe need for adequate financing for future exploration and development efforts. Therecan be no assurance that such statements will prove to be accurate. Actual results andfuture events could differ materially from those anticipated in such statements. Theseand all subsequent written and oral forward-looking statements are based on theestimates and opinions of management on the dates they are made and are expresslyqualified in their entirety by this notice. The Company assumes no obligation to updateforward looking statements should circumstances or management's estimates oropinions change.
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CAUTIONARY STATEMENT
Forward Looking
Information
Qualified Person under
NI 43-101
Disclosure of a scientific or technical nature related to North Arrow’s projects in thispresentation has been reviewed and approved by Ken Armstrong, P.Geo. President andCEO of North Arrow and a Qualified Person under NI 43-101.
CORPORATE OVERVIEW *as of January 31st, 2018
Capitalization
Listing: TSX Venture – NARIssued: 92.8 MOptions: 8.9 M
Warrants: 26.5 M (20 M at $0.40)
Fully diluted: 128.2 MEstimated Working Capital: ~$0.9 M
Main Shareholders
Management/Directors/Advisors ~23.8%
Zebra Holdings and Investments ~10.4%
Electrum Strategic Opportunities Fund ~8.6%
Ross Beaty ~8.6%
Corporate Highlights
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D. Grenville Thomas (Chairman) Founder of Aber (now Dominion Diamond), discoverer of the Diavik Diamond Mine; Canadian Mining Hall of Fame inductee.
Ken Armstrong P.Geo.(ON) (President, CEO, Director and Qualified Person under NI 43-101) Diamond exploration and evaluation experience with Diavik, Aber, De Beers, Navigator, and Stornoway.
Christopher Jennings (Director) Founder of SouthernEra, consultant to Aber; formerly with International Corona Corp., BP Minerals (Canada) and Falconbridge.
Blair Murdoch (Director) More than thirty years experience in senior management of private and public companies.
Eira M. Thomas (Advisor) Extensive diamond exploration and development experience in Canada and Africa; Founder, CEO & director of Lucara; Former officer and director of Aber; Founder of Stornoway; Currently director of Suncor.
William Lamb (Advisor) Former CEO of Lucara, 20+ years project development experience with Lucara, De Beers, Kvaerner and Rand Mines.
Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.
CORPORATE OVERVIEW - PEOPLE
Management Highlights
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• Six kimberlite fields discovered in the last six years
• North Arrow discovered two of them: (1) Pikoo & (2) Mel; the only junior explorer to make a discovery in that period.
• Both significantly diamondiferous
J:\1Maps\NorthAmerica\CanadaDEM\DEM
Kimberlite andrelated rocksPre-1981
1981-2012
2013-2018
DIAMOND DISCOVERIES: A CANADIAN LEADER
North American Diamond Exploration
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CORPORATE OVERVIEW – PROJECTS
EXISTING DIAMOND MINE
Grassroots
7. Timiskaming (JV w SWY) 7
DIAVIKEKATI
VICTOR
RENARD
GAHCHOKUE
Discovery Stage
2. Mel (100%) Kimberlite Field discovery3. Loki (100%) Kimberlite 465 discovered 2018;
1st Lac de Gras discovery in > 5 years4. LDG (JV w Dominion) 2019 drilling & sampling5. Pikoo (100%) Kimberlite Field discovery6. Luxx (100%) Permitted & drill ready
Advanced Stage
1. Naujaat (100%) Significant diamond inventory; potential value upside: fancy orange-yellow diamonds
Assessing a known kimberlite or diamond deposit
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Brownfields Gold
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8. Hope Bay (100%)
Next stage of diamond exploration could lead to discovery
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5
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Target development
Within 3km of TMAC’s Doris Mine; similar geology and structures
CORPORATE OVERVIEW – PROJECTS
EXISTING DIAMOND MINE 7
DIAVIKEKATI
VICTOR
RENARD
GAHCHOKUE
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Advanced Stage Assessing a known kimberlite or diamond deposit
1. Naujaat (100%) Significant diamond inventory; potential value upside: fancy orange-yellow diamonds
NaujaatProposed CommunityAccess Trail:Kimberlite:
NAR Laydown
NAUJAAT PROJECT – TICKS ALL THE BOXES
Jurisdiction
Near tide water
Large tonnage
Low strip ratio
Significant diamond inventory*
Blue sky potential
* CAUTION – Inferred Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability
Unique diamond value proposition
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<3:1 vs >10:1 for NWT diamond mines
~48 Mt down to 205m below surface
~26M contained carats
15 additional kimberlites for evaluation
Freight costs 50% of NWT diamond mines
Clear permitting path in Nunavut
Q1-4 Kimberlite
Q1-4 DIAMOND DEPOSIT: STATUS
Q1-4 “run of mine” from 2014 sample; +9DTC and
above.
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2016 – Commenced two phase approach to show value upside of Q1-4 diamonds:1) Cutting/polishing of yellow diamonds2) Analysis of diamond size frequency distributions (SFD)
Primary WWW Conclusions from the 2015 Valuation:• Parcel too small• Yellow diamonds were considered of little interest.
2015 WWW Diamond Valuation based on 384 carats recovered from ~1,350 t$92 per carat modelled “possible high” | $43 per carat modelled “possible low”
Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Cut & Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade
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Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Cut & Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade
2. Nitrogen aggregation studies show the yellow and white diamonds distinct populations
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Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade
2. Nitrogen aggregation studies show the yellow and whitediamonds distinct populations
3. Yellow diamonds show a much coarser size frequency distribution (SFD) implying potential for higher abundanceof yellow diamonds in coarser sizes
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Q1-4 Grade/Size CurveComparative Curves
Total Parcel
‘Dark Yellow’only
Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade
2. Nitrogen aggregation studies show the yellow and whitediamonds distinct populations
3. Yellow diamonds show a much coarser size frequency distribution (SFD) implying potential for higher abundanceof yellow diamonds in coarser sizes
4. 2015 possible low to high model prices applied to the coarse yellow SFD scenario results in low to high price range of$60 to $220 per carat
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Q1-4 Grade/Size CurveComparative Curves
Total Parcel
‘Dark Yellow’only
Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade
2. Nitrogen aggregation studies show the yellow and whitediamonds distinct populations
3. Yellow diamonds show a much coarser size frequency distribution (SFD) implying potential for higher abundanceof yellow diamonds in coarser sizes
4. 2015 possible low to high model prices applied to the coarse yellow SFD scenario results in low to high price range of$60 to $220 per carat
5. At this price the project is very attractive
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Potential value upside is based on coarse SFD
alone; does not factor in that yellow diamonds
are fancy coloured, worth a premium price, and of interest to luxury
jewelry trade
Q1-4 - LARGE TONNAGE, EASY ACCESS
~700m
~200m
Q1-4 looking southwest: 12.5 ha kimberlite
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• Easy surface access to A28, A61 & A88 phases
• Current Q1-4 resource ~48Mt to 205m depth
• Modelling suggests extending the resource to 300m depth could result in strip ratio < 3:1
• 2017 drilling extended Q1-4 below 300m
Q1-4 DELINEATION DRILLING
• Several deep drill holes remained in kimberlite >100m beyond the current model and well below 300m from surface.
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B Looking North
Current TFFE
0 m
100 m
300 m
200 m
B
A
A’
B’
2017 drill holes on 2013 resource model
Looking West
A A’0 m
100 m
300 m
200 m
B’
Current TFFE
• Take advantage of access trail & free digging character - reduced cost & more local investment
• Test at least 3 phases (A28, A88, & A61)
• Access could allow for on site processing: i) simultaneous collection/processingii) staged diamond recoveryiii) faster results
• Innovative flow sheet & TOMRA optical sorting
NAUJAAT PROJECT – WAY FORWARD
Timeline: Sample collection & diamond recoveries in 2020
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~ 10,000t bulk sample from Q1-4
Sample Collection:
Sample Processing Options:
Bulk Sample funding:• Non-dilutive, project level funding options
Sample Goal:• Confirm coarse SFD & value upside of orange –
yellow diamonds
• Economic diversification -i) Access to aggregateii) Access to carving stoneiii) Tourism (outfitters; education)iv) Evaluation of Q1-4
• Safer access to the land for traditional land use activities and education
• Hamlet is project proponent• Entirely within municipal boundary• Permitting & funding are underway
NAUJAAT PROJECT – WAY FORWARD
Timeline: Start construction in 2019 18
Community Access Trail
Community led initiative:
Economic & Cultural opportunities:
Funding:
• Applications submitted for Territorial and Federal government funding
Q1-4 10,000 TONNE BULK SAMPLE PLAN
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Q1-4 Kimberlite
NAR Laydown Area
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PROCESSING OF SAMPLE IN THE NORTH
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Q1-4
A34A94
A76
RENEWED EVALUATION OF OTHER KIMBERLITES
A94• ~10 hectares• Diamondiferous• 2 angled drill
holes (@450)• Both >300m &
ended in kimberlite
All are under-evaluated with limited drillingSimilar age & mantle sample as Q1-4
• ~3 hectares• Diamondiferous• 2 angled drill
holes (@450)• 1 hole ends in
kimberlite
A34
• ~3 hectares• Diamondiferous• 3 angled drill
holes
A76:
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WAY FORWARD – SUMMARY TIMELINE
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• Fabrication – Fall 2019 / Winter 2020• Delivery / Commissioning – Summer 2020
• Groundworks / sampling – Summer 2020• Completion – Summer 2021• Diamond Results – Fall 2020 thru Fall 2021
Processing Plant: Design Engineering – In Progress
Access Trail: Permitting & Funding – In Progress
• Construction start – Summer 2019• Construction completion – Summer 2020
Exploration Potential: Detail Review & Evaluation –In Progress
Bulk Sample: Permitting – In Prep.; Submit Sept. 2019Funding – Ongoing; Fall 2019
There is no other diamond project in
the world at this stage of assessment
without the involvement of a
diamond producer.
Diamond value is the last variable. All the
other boxes are ticked.
MEL DIAMOND PROJECT
EXISTING DIAMOND MINE 23
DIAVIKEKATI
VICTOR
RENARD
GAHCHOKUE
Discovery Stage
Mel Project (100%)
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2
Diamondiferous Kimberlite Field Discovered 2017
New diamondiferous kimberlite field
East central Melville Peninsula
18 km from ocean; 140 km south of Hall Beach; 210 km northeast of Naujaat
Three kimberlites discovered to date
Additional unexplained KIM anomalies
2018 property wide till samples
MEL – NEW CANADIAN DIAMOND DISCOVERY
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Mel Project
MEL KIMBERLITES – EXCELLENT MANTLE SAMPLE
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olivine
pyrope garnet
ilmenite
MEL PROJECT - MICRODIAMOND RESULTS
26*Stones per tonne per Unit Interval
BodySampleWeightDry Kg
Number of Diamonds per Sieve Size (mm Square Mesh Sieve)+0.106-0.150
+0.150-0.212
+0.212-0.300
+0.300-0.425
+0.425-0.600
+0.600-0.850
+0.850-1.18
TotalStones
ML8 (Lower) 24.15 0 3 0 2 1 1 1 8ML8 (Upper) 270.5 20 16 17 10 1 2 3 69
1 cm
NEW KIMBERLITE TARGETS - SOUTH TRAIN
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Results have expanded the south Mel KIM
target area, including most
anomalous sample returned
to date in this region (15 KIMs)
NEW KIMBERLITE TARGETS - NORTH TRAIN
ML8 Upper and Lower Kimberlites
ML345 Kimberlites
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Results have extended the
train further to the north;
sample 600m north of the
ML8 kimberlite had 34 KIMs
MEL PROJECT – WAY FORWARD
OCEAN
ML-345
ML-8 Upper
ML-8 Lower
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WAY FORWARDCamp is in PlaceGeophysicsTill SamplingProspectingDrilling
EXISTING DIAMOND MINE 30
DIAVIKEKATI
VICTOR
RENARD
GAHCHOKUE
Discovery Stage
Loki Project (100%)
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LDG Project(JV w Dominion; ~26% NAR)
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LAC DE GRAS DIAMOND PROJECTS
• Large project area (147,200 ha) south of Diavik & Ekati; only 3 known kimberlites
• Dominion Diamond Mines (Operator) is focused on discovery to extend Ekati mine life
• $2.87M 2019 exploration program is underway
• Exploration drilling in summer 2019
LAC DE GRAS DIAMOND PROJECTS
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• 8,607 ha; 100% NAR • Kimberlite 465 discovered in 2018• Diamondiferous EG05 kimberlite• Additional targets associated with
unsourced KIMs• Way Forward: till sampling, geophysics &
drilling
Lac de Gras (LDG) Joint Venture (NAR ~26%)
Loki Property
EXISTING DIAMOND MINE 32
DIAVIKEKATI
VICTOR
RENARD
GAHCHOKUE
Discovery Stage
Pikoo Project (100%)
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PIKOO DIAMOND PROJECT
PIKOO PROJECT, SK
23 +0.85 mm stones recovered from initial 2013 209 kg PK 150 sample
North Arrow (100%)
Good local infrastructure - within 10 km of SK Hwy 911
10 kimberlite discoveries; 5 tested kimberlites are diamondiferous
PK150 – 1,232 diamonds > 0.106 mm from 531 kg
• Till sampling suggests more unique unsourced KIM trains
• 2018 staking of new claims bordering the west of the property
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PK150
PK314 &PK346
PK312
PK311
Mantle Nodule from PK150, 2016 drilling
• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4 kimberlite (~26 million carats) – clear evaluation path & soon to have road access!
• Two new diamondiferous kimberlite fields – Mel & Pikoo
• 465 – first Lac de Gras kimberlite discovery in over 5 years
• 6 drill-ready (and fully permitted) diamond properties; including 5 thathost known diamondiferous kimberlite – Naujaat, Mel, Pikoo, Loki & LDG
DIAMOND DISCOVERIES: A CANADIAN LEADER
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NAR: Canadian diamond sector’s most active & successful explorer over the last 6 years
TSXV: NARKen Armstrong
President & CEO
Nick ThomasCommunity and Investor
Relations Manager
Suite 960-789 West Pender StreetVancouver, BC
Canada V6C 1H2Tel: +1.604.668.8354Fax: +1.604.336.4813
www.northarrowminerals.com
@narminerals
northarrowminerals