North Arrow Minerals Inc. · TSXV:NAR
North Arrow Minerals — Diamonds in Canada Symposium 2019
32 slides from North Arrow Minerals's conference presentation, Jun 20, 2019
Slide 1: Canada's Most Active Diamond Explorer
TSXV: NAR TSXV:NAR Canada’s Most Active Diamond Explorer Diamonds in Canada Symposium June 20, 2019
Slide 2: Corporate Overview
CORPORATE OVERVIEW *as of January 31 , 2018 st Capitalization Corporate Highlights Listing: TSX Venture – NAR Issued: 92.8 M Options: 8.9 M Warrants: 26.2 M (20 M at $0.40) Fully diluted: 127.9 M Estimated Working Capital: ~$0.9 M Main Shareholders Management/Directors/Advisors ~23.8% Zebra Hold
Slide 3: Corporate Overview - People
CORPORATE OVERVIEW - PEOPLE 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
Slide 4: Diamond Discoveries: A Canadian Leader
DIAMOND DISCOVERIES: A CANADIAN LEADER North American Diamond Exploration 2 Kimberlite and related rocks Pre-1981 1981-2012 1 2013-2018 • 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
Slide 5: Corporate Overview – Projects
CORPORATE OVERVIEW – PROJECTS Advanced Stage Assessing a known kimberlite or diamond deposit 1. Naujaat (100%) Significant diamond inventory; potential value upside: fancy orange-yellow diamonds Next stage of diamond exploration Discovery Stage could lead to discovery 8 1 2 2. Mel (100%) Kimberlite
Slide 6: Corporate Overview – Projects
CORPORATE OVERVIEW – PROJECTS Advanced Stage Assessing a known kimberlite or diamond deposit 1. Naujaat (100%) Significant diamond inventory; potential value upside: 1 EKATI DIAVIK GAHCHO KUE RENARD VICTOR Fancy orangey-yellow & yellow diamonds EXISTING DIAMOND MINE 6
Slide 7: Q1-4 Diamond Deposit: Status
Q1-4 DIAMOND DEPOSIT: STATUS 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” Primary WWW Conclusions from the 2015 Valuation: • Parcel too small • Yellow diamonds were considered of little interest.
Slide 8: Q1-4 Diamond Project: Status
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 8
Slide 9: Q1-4 Diamond Project: Status
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 9
Slide 10: Q1-4 Diamond Project: Status
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 Q1-4 Grade/Size Curve 2. Nitrogen aggregation studies show the yellow and white Comparative Curv
Slide 11: Q1-4 Diamond Project: Status
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 Q1-4 Grade/Size Curve 2. Nitrogen aggregation studies show the yellow and white Comparative Curv
Slide 12: Q1-4 Diamond Project: Status
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 white diamonds distinct populations 3. Yello
Slide 13: Q1-4 - Large Tonnage, Easy Access
Q1-4 - LARGE TONNAGE, EASY ACCESS Q1-4 looking southwest: 12.5 ha kimberlite • Easy surface access to A28, A61 & A88 phases • Current Q1-4 resource ~48Mt to 205m depth • Modelling suggests extending the ~700m resource to 300m depth could result in ~200m strip ratio < 3:1 • 2017 drilling extended Q1-
Slide 14: Q1-4 Delineation Drilling
Q1-4 DELINEATION DRILLING Looking North B B’ 0m • Several deep drill holes remained in kimberlite 100 m >100m beyond the current model and well below 300m from surface. 200 m Current TFFE 300 m A’ Looking West 0m A A’ B B’ 100 m 200 m A Current TFFE 2017 drill holes on 2013 resource model 300 m 14
Slide 15: Naujaat Project – Way Forward
NAUJAAT PROJECT – WAY FORWARD ~ 10,000t bulk sample from Q1-4 Sample Goal: • Confirm coarse SFD & value upside of orange – yellow diamonds Sample Collection: • Take advantage of access trail & free digging character - reduced cost & more local investment • Test at least 3 phases (A28, A88, & A61) Sa
Slide 16: Naujaat Project – Way Forward
NAUJAAT PROJECT – WAY FORWARD Community Access Trail Community led initiative: • Hamlet is project proponent • Entirely within municipal boundary • Permitting & funding are underway Economic & Cultural opportunities: • Economic diversification - i) Access to aggregate ii) Access to carving stone iii
Slide 17: Q1-4 10,000 Tonne Bulk Sample Plan
Q1-4 10,000 TONNE BULK SAMPLE PLAN Q1-4 Kimberlite Access Trail ATV Upgrade: 11 km NAR Laydown 19Access Trail New Alignment: 4 km 19 1.5 km Spur Road: Kimberlite: Bridge: Culvert: Aggregate Deposit:
Slide 18: Processing of Sample in the North
PROCESSING OF SAMPLE IN THE NORTH 19
Slide 19: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES All are under-evaluated with limited drilling A34 Similar age & mantle sample as Q1-4 • ~3 hectares • Diamondiferous • 2 angled drill holes (@450) • 1 hole ends in Q1-4 kimberlite A94 • ~10 hectares • Diamondiferous • 2 angled drill holes (@450) A34 • Both >30
Slide 20: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES 21
Slide 21: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES A34 A94 A76 A152 A59 A42 A97 22
Slide 22: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES A34 A94 A76 A152 A59 A42 A97 22
Slide 23: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES A94 A76 A152 A59 A42 A97 22
Slide 24: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES Kimberlite A34 A34image satellite airborne EM 6200 Hz airborne magnetics 220 m 2003-08-08 ? 2003-08-07 A34 Cross Section - Looking West 2003-08-07 2003-08-08 EOH 174 m 100 m EOH 197 m 23 220 m
Slide 25: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES A34 A94 A76 A152 A59 A42 A97 24
Slide 26: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES 24
Slide 27: Renewed Evaluation of Other Kimberlites
RENEWED EVALUATION OF OTHER KIMBERLITES Kimberlite A94 satellite image airborne magnetics airborne EM 6200 Hz 2003-08-14 2003-08-25 385 m A94 Cross Section - Looking Northwest 2003-08-25 2003-08-14 ? 385 m 100 m EOH 305 m EOH 320 m 25
Slide 28: Market Cap Comparisons: Canadian Junior Diamond Explorers
MARKET CAP COMPARISONS (as of June 18, 2019) MARKET CAP (IN MILLIONS) OF CANADIAN JUNIOR DIAMOND EXPLORERS $79 $80.0 $70.0 Millions of dollars $60.0 $50.0 $40.0 $30.0 $20.0 $10 $5.2 $5.9 $6.1 $6.3 $2.5 $4.0 $4.1 $5.1 $10.0 $1.6 $- 30
Slide 29: Market Cap Comparisons: North Arrow vs. Diamond Producers
MARKET CAP COMPARISONS (as of June 18, 2019) MARKET CAP IN MILLIONS – NORTH ARROW VS. DIAMOND PRODUCERS $700.0 $639 $600.0 Millions of dollars $500.0 $415 $320 $400.0 $300.0 $178 $200.0 $67 $100.0 $5.1 $23 $- North Arrow Stornoway Lucapa Gem Petra Mountain Lucara Province 31
Slide 30: Way Forward – Summary Timeline
WAY FORWARD – SUMMARY TIMELINE Access Trail: Permitting & Funding – In Progress • Construction start – Summer 2019 Diamond value is the • Construction completion – Summer 2020 last variable. All the other boxes are ticked. Processing Plant: Design Engineering – In Progress • Fabrication – Fall 2019
Slide 31: Diamond Discoveries: A Canadian Leader
DIAMOND DISCOVERIES: A CANADIAN LEADER NAR: Canadian diamond sector’s most active & successful explorer over the last 6 years • 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
Slide 32: TSXV: NAR
TSXV: NAR Ken Armstrong President & CEO Nick Thomas Community and Investor Relations Manager Suite 960-789 West Pender Street Vancouver, BC Canada V6C 1H2 Tel: +1.604.668.8354 Fax: +1.604.336.4813 info@northarrowminerals.com @narminerals northarrowminerals www.northarrowminerals.com
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