North Arrow Minerals Inc. · TSXV:NAR
North Arrow Minerals — Shareholder Meeting (January 2015)
34 slides from North Arrow Minerals's shareholder meeting presentation, Jan 6, 2015
Slide 1: Annual General Meeting of Shareholders
TSXV:NAR Annual General Meeting of Shareholders January 6, 2015
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation contains projections and forward looking information that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization, resources, reserves, exploration results and plans and objectives
Slide 3: The Opportunity
THE OPPORTUNITY EXPERIENCED TEAM – Successful exploration and development (Aber; Diavik; Lucara; Stornoway; Southern Era) SOLID FINANCIAL BACKING - >$13M raised over last 18 months, while maintaining an attractive share structure - ~50M shares o/s; ~55M shares f/d LEVERAGED EVALUATION - Canadi
Slide 4: Corporate Overview – as of October 31, 2014
CORPORATE OVERVIEW– as of October 31, 2014 Capitalization Listing: TSX Venture - NAR Issued: 49.8 M Options: 4.3 M Warrants: 1.0 M $0.25 & $0.65 Corporate Fully diluted: 55.1 M Highlights Estimated Working Capital: $5.4 M Main Shareholders Management/Directors ~18% Zebra Holdings & Investments ~
Slide 5: Corporate Overview
CORPORATE OVERVIEW D. Grenville Thomas (Chairman) Founder of Aber Resources (now Dominion Diamond Corporation), discoverer of the Diavik Diamond Mine. 2009 Canadian Mining Hall of Fame inductee. Ken Armstrong (President, CEO and Qualified Person under NI 43-101) Diamond exploration and evaluation ex
Slide 6: NAR - Principal Diamond Projects
NAR - PRINCIPAL DIAMOND PROJECTS Redemption (NT) Qilalugaq (NU) • 34,800 acres • Large tonnage resource • Near Diavik & Ekati mines • Potential for high value stones • Unexplained KIM trains • 1500 t. bulk sample complete. • >$12M dataset • Diamond recovery underway; • Earning a 55% interest valuati
Slide 7: Qilalugaq Project, NU
QILALUGAQ PROJECT, NU Can earn 80% from Stornoway by completing mini-bulk sample. Q1-4 kimberlite SWY retains one time back-in right to 40% by paying 3X exploration costs. Primary target is the Q1-4 kimberlite (Repulse Bay, NU). 7 km from tidewater; 9 km from town. Largest diamondiferous kim
Slide 8: Qilalugaq Project - Resource
QILALUGAQ PROJECT - RESOURCE May 2013 resource estimate1 Q 1-4 – Inferred Resource = 48.8 Mt, 26.1 Mcts, total diamond content2 53.6 cpht. – TFFE3 = 14.1 to 16.6 Mt, 7.9 to 9.3 Mcts, total diamond content2 56.1 cpht. Inferred Resource Size/grade compares favourably to other current advanced/deve
Slide 9: Q 1-4 2014 Sample Location
Q 1-4 2014 SAMPLE LOCATION Q1-4 sample trench locations Q1-4 kimberlite outline Central Pit West Pit N Diamond population has been determined to be the same 2006-07 sample locations throughout different phases of the Q1-4 pipe. The sample from the outcropping NE lobe (A28a) will provide a initial se
Slide 10: Q1-4 Sampling Process
Q1-4 SAMPLING PROCESS Mega-bags were set up on stands by sample site ground staff. Kimberlite was broken up and scooped into mega-bags by excavator. Consistent sample size per bag was ensured by ground staff. Once full, ground staff broke down stands and prepared mega-bag for helicopter pick
Slide 11: Q1-4 Sample Site – Progress Over Time
Q1-4 SAMPLE SITE– PROGRESS OVER TIME The view looking southwest July 13, 2014 West Pit Central Silt Pit Fences SW 2007 Sample Pit 11
Slide 12: Q1-4 Sample Site – Progress Over Time
Q1-4 SAMPLE SITE– PROGRESS OVER TIME The view looking west August 13, 2014 West Pit Silt Fences W Central Pit 2007 Sample Pit 12
Slide 13: Q1-4 Sample – Achieving the Goal
Q1-4 SAMPLE – ACHIEVING THE GOAL North Arrow’s Sampling Team reach the planned goal of 1650 bags of kimberlite ~1500 tonnes 1688 bags were ultimately collected and shipped for processing. 13
Slide 14: Sample Laydown Area – Repulse Bay
SAMPLE LAYDOWN AREA – REPULSE BAY August 15, 2014 E Sample laydown area with final 1688 mega-bags. Cost to this point ~$1.7 million. 14
Slide 15: Sample Transport
SAMPLE TRANSPORT Sealift from Repulse Bay to Montreal by truck to Microlithics (Thunder Bay). Sample processing is underway; expected to take ~ 4 months. 15
Slide 16: Q 1-4 Grade Comparison
Q 1-4 GRADE COMPARISON Grade Comparison of Producing Mines at Startup and Current Advanced Projects* Producing Mine Projects with Resources 4 3.5 3 Carats per tonne 2.5 Q1-4 grade: 2 0.54 carats per tonne 1.5 1 0.5 0 Victor Chidliak Karowe Ghaghoo Qilalugaq Bunder Renard Gahcho Kue Ekati* Grib Diavi
Slide 17: Q 1-4 Diamonds
Q 1-4 DIAMONDS Q1-4 size and grade on par with other operating mines; Diamond value still unknown. 64 carat parcel recovered to date suggests a value on par with ‘typical Canadian smalls’. Parcel not big enough to assess diamonds into grainer and carater sizes. Need +500 cts for a more rob
Slide 18: Yellow Diamonds – Supply & Demand
YELLOW DIAMONDS – SUPPLY & DEMAND Supply The Ellendale Mine, Australia ON CARE AND MAINTENANCE as of Fall 2014 • Produced ~50% of the world’s yellow fancies – was operated by Kimberley Diamonds Ltd.; grade of ~4 cpht. Tiffany’s had been buying these yellows since 2009 (up until May 2014) so prices w
Slide 19: Potential Impact of Yellow Diamonds
POTENTIAL IMPACT OF YELLOW DIAMONDS Case Study: Potential Impact of Fancy Yellows on Average Diamond Price Yellow Goods Commercial Goods % of Run of Mine Diamond Population 100% 5% 10% 90% 80% 70% 56% 73% 60% 50% 95% 90% 40% 30% 20% 44% 27% 10% 0% wt.% Value% wt.% Value% Case1 AP$/ct Case 2 AP$/Ct $
Slide 20: Qilalugaq – Ticking Off the Boxes
QILALUGAQ – TICKING OFF THE BOXES View looking south-southwest from Q1-4 kimberlite towards Repulse Bay Jurisdiction- Nunavut has settled land claims; AEM’s Meadowbank gives permitting path. Near tide water - improved logistics; sealift available; proximity to workforce. Large tonnage – 48.8 m
Slide 21: Qilalugaq Project – What's Next
QILALUGAQ PROJECT – WHAT’S NEXT CURRENTLY: ~1,500 tonne sample of kimberlite from Q1-4 is being processed at Microlithics laboratory in Thunder Bay ON; final diamond recovery also on going in North Van. WHAT’S NEXT: Concentrate will continue to be shipped as available to North Vancouver to under
Slide 22: Pikoo Project, SK
PIKOO PROJECT, SK North Arrow (80%)/Stornoway (20%) Joint Venture. Identified through regional targeting and sampling of the Sask Craton. Good local infrastructure; within 10 km of SK Hwy 911– more than 200 km from nearest kimberlite field (FALC). Kimberlite discovered in nine of ten drill h
Slide 23: Pikoo – PK150 Diamond Results
PIKOO – PK 150 DIAMOND RESULTS 745 diamonds > 0.106 mm 23 diamonds > 0.85 mm A 209.7 kg drill core Total carats > 0.85 mm = 0.2815 sample yielded Total recovery sample grade (+0.85mm) = 1.34 cpt > 95% of diamonds are intact, white octahedrons or aggregates. PK150 – all > 0.85 mm stones Num
Slide 24: PK150 Microdiamond Comparison
PK 150 MICRODIAMOND COMPARISON CH6, Chidliak, NU 9/09; VK; 399kg Kelvin, Kennady North, NWT 10/12; HK; 394 kg PK150, Pikoo, SK 11/13; HK; 210 kg 24
Slide 25: Pikoo Project – KIM Sampling
PIKOO PROJECT – KIM SAMPLING PK 150 Northern kimberlite discoveries North Pikoo KIM Train Mantle Nodule from the N PK150 kimberlite Excellent Slave South Pikoo Pikoo KIM Train Chemistry Ice Direction 10 km Bigger circles = more KIM grains pyrope garnets ilmenite eclogitic garnets chromite First anom
Slide 26: Pikoo Project – New Indicator Trains
PIKOO PROJECT – NEW INDICATOR TRAINS June program was intended to infill existing KIM anomalies to define new KIM trains. 441 samples. 85% of results are now in. New targets defined. Fall sampling program collected an additional 109 samples in cut-off areas of new unsourced KIM trains. N
Slide 27: Pikoo Project – New Indicator Trains
PIKOO PROJECT – NEW INDICATOR TRAINS June program was intended to infill existing KIM anomalies to define new KIM trains. 441 samples. 60% of results are now in. New targets defined. Fall sampling program collected an additional 109 samples in cut-off areas of new unsourced KIM trains. N
Slide 28: The Way Forward
THE WAY FORWARD Project Location Commodity Interest Comment Qilalugaq Nunavut Diamonds 80% (60%) >1500t Q1-4 sample; processing is underway; valuation H1 2015 Pikoo Saskatchewan Diamonds 80% New targets identified by 2014 sampling; drilling winter 2015 Redemption NWT Diamonds 55% Reassessing target
Slide 29: TSXV: NAR
TSXV: NAR Ken Armstrong President & CEO Gren Thomas Chairman 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
Slide 30: Advanced Stage Projects and Near-Term Producers
ADVANCED STAGE PROJECTS AND NEAR-TERM PRODUCERS Qilalugaq (NU) North Arrow Minerals– earning 80% Gahcho Kue (NT) Mountain Province – 49% De Beers – 51% Chidliak (NU) Peregrine Diamonds – 100% Kennady Lake (NT) Renard (QC) Kennady Diamonds – 100% Stornoway Diamonds 100% NEAR-TERM PRODUCERS ADVANCED S
Slide 31: Canada's Annual Diamond Production
CANADA’S ANNUAL DIAMOND PRODUCTION Peak production Jericho 17 million commences 18,000,000 production carats Third – closes in worldwide 2008 by value - 16,000,000 Victor and $1.9 Snap Lake billion millions of carats 14,000,000 Diavik commence commences production 12,000,000 production 10,000,000 8,
Slide 32: World Annual Diamond Production - Declining
WORLD ANNUAL DIAMOND PRODUCTION - DECLINING New Projects Expansions 170 Existing 160 150 140 130 millions of carats 120 110 100 90 80 70 60 50 40 30 20 10 0 SOURCE: McKinsey proprietary diamond sector research
Slide 33: Rough Diamond Demand Predictions
ROUGH DIAMOND DEMAND PREDICTIONS
Slide 34: Rough Diamonds Supply and Demand
ROUGH DIAMONDS SUPPLY AND DEMAND
North Arrow Minerals — Shareholder Meeting (January 2015) on 6ix