Arctic Star Exploration Corp. · TSXV:ADD
Arctic Star Exploration — Investor Presentation (September 2018)
42 slides from Arctic Star Exploration's investor presentation, September 2018
Slide 1: Corporate Presentation September 2018
TSX-V: ADD | FRA: A182.F | OTCQB: ASDZF CORPORATE PRESENTATION SEPTEMBER 2018
Slide 2: Cautionary Statement on Forward Looking Information
CAUTIONARY STATEMENT ON FORWARD LOOKING INFORMATION These presentation materials (“the Presentation Materials”) are being supplied to you for information purposes only on Arctic Star. (the “Company”). These Presentation Materials have been prepared by and are the sole responsibility of the Company.
Slide 3: Company Overview
COMPANY OVERVIEW • Arctic Star Exploration Corp. is a junior natural resource company engaged in the acquisition, exploration, and development of mineral properties • Arctic Star has two geologists who have each discovered a multi Timantti billion dollar diamond mine • Timantti Project, located in F
Slide 4: Capital Structure
CAPITAL STRUCTURE Ticker TSX-V: ADD Shares Issued 104,948,863 Options 9,341,661 Warrants 38,208,767 Total Shares Outstanding 152,499,291 4
Slide 5: Board of Directors & Management
BOARD OF DIRECTORS & MANAGEMENT Scott Eldridge Patrick Power Buddy Doyle Roy Spencer PRESIDENT & CEO, EXECUTIVE CHAIRMAN, VP EXPLORATION, COUNTRY MANAGER, DIRECTOR DIRECTOR DIRECTOR DIRECTOR Thomas Yingling Sean Charland Bill Ferreira Jared Lazerson DIRECTOR DIRECTOR DIRECTOR DIRECTOR 5
Slide 6: Diamond Pipeline
DIAMOND PIPELINE Rough Diamonds Polished Jewelry Cutting Jewelry Production Sales and Sales manufac Retail polishing turing 35% of Market Top 5 Control Controlled by No. of Players ~100 ~5,000 ~10,000 70% largest Retailers Typical Margins 28% 2% 4% 4% to 10% $87B per annum diamond $16B per $25B per
Slide 7: Diamonds Rough Prices
DIAMONDS ROUGH PRICES • Rough Diamond price and demand rebounding from record highs in 2011-2013 never really left high territory • Recently prices retreated ➢ Indian currency crisis ➢ Quantative easing lead to bidding wars using debt. Banks closed in Antwerp ➢ Slightly less USA holiday demand • Pri
Slide 8: Diamond Production Forecast
DIAMOND PRODUCTION FORECAST • The world consumes 127 million carats of rough per year • The equivalent to the entire reserves of a medium size diamond mine per year • Argyle will close this year • Udachnya and Mir have closed • Very little global diamond exploration since the 2008 GFC • No new signi
Slide 9: Overview of the Synthetic Market
OVERVIEW OF THE SYNTHETIC MARKET • Synthetics have been around since the 1980’s they have improved in quality but De Beers and the GIA have developed identification methods and now every natural cut diamond is certified. • There is no resale market for Synthetics and difficult to insure for purchase
Slide 10: De Beers' Counter to Synthetic Diamonds
DE BEER’S COUNTER TO SYNTHETIC DIAMONDS • De Beers have dramatically changed their strategy and have begun making and marketing synthetic stones separated to natural diamonds • To fit in with the Moissanite, cubic zirconia market • This undercuts the other synthetics diamond producers who are have b
Slide 11: Proven Track Record Finding Diamond Mines: Grib Mine
PROVEN TRACK RECORD GRIB MINE FINDING DIAMOND MINES Roy Spencer (Photo above) led the team that discovered the Grib Diamond Mine in Russia, sold for $1.5B. The Timantti Project is on the same geological provinance as Grib and Lomonosov Diamond Mines. Roy has worked in diamonds since 1970s with De Be
Slide 12: Proven Track Record Finding Diamond Mines: Diavik Mine
PROVEN TRACK RECORD DIAVIK MINE FINDING DIAMOND MINES Buddy Doyle (Photo above) led the exploration team that found the Diavik diamond mine in Canada. 40% was sold to the Washington Group for $1.2B and is still operated by Rio Tinto. Buddy has worked with Diamonds since the 1980s 12
Slide 13: Location the Right Address
LOCATION THE RIGHT ADDRESS • Finland Was Recently Ranked as World’s #1 Mining Jurisdiction in the world by the Fraser Institute 2018 • 100% Interest 243 Ha Exploration Permit near the town of Kuusamo. No Royalties • District Scale Land Package: 193,700 Hectares or Exploration Reservation Exclusive R
Slide 14: Land Position Exploration
LAND POSITION EXPLORATION • Arctic Star has 243 Ha Exploration Permits RUSSIA • Covers the extend of the large kimberlite indicator plume known from the Wolves Russian border, public data ARCTIC thought to outline the extend of Timantti project kimberlite KUUSAMO field ICE DIRECTION AND LOCATION OF
Slide 15: Timantti: World Class Infrastructure
TIMANTTI: WORLD CLASS INFRASTRUCTURE • 17km away from Kuusamo 400m off the highway • You can use UBER get to the Wolf Kimberlites from Kuusamo international airport • Flat and easy terrain to access the property • Grid Power 15
Slide 16: Timantti 243 Ha Property
16 © Pit with kimberite i @ 2018 Gill collars, —SEar Arctic Star Exploration |} Timantti Project ARCTIC STAR EXPLORATION TIMANTTI 243 Ha PROPERTY va. V4 VV v y\/ 7
Slide 17: Timantti Phase 1 an Excellent Start
TIMANTTI PHASE 1 AN EXCELLENT START • Commenced November 2017 • Ground Geophysics: Magnetic, Gravity and EM Surveys • Excavator Till Sampling: Approximately 20 Samples ~50lbs • Drill Program: Approximately 600 Metres • Two New kimberlite bodies found, by Excavator the Grey Wolf and the Vasa Dyke Swa
Slide 18: White Wolf Drill Results
WHITE WOLF DRILL RESULTS Sample Total Kimberlite +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Weight Kg Stones New 262.33 393 168 95 62 18 11 7 3 758 Previous 147.60 123 85 41 19 9 5 0 2 274 Total 409.93 516 253 136 81 27 16 7 5 1,032 18
Slide 19: Timantti Phase 1 Completed Ground Mag
TIMANTTI PHASE 1 COMPLETED GROUND MAG NUMEROUS untested drill targets Wolf Pack The Wolves seem to form an Gen 2 (Drill Target) Vasa Discovery East-West trend, which may have Many other members. Red arrows. Wolf Pack Discovery Comet Target (Drill Target) Meteor Target (Drill Target) 19
Slide 20: Timantti Drill Collars
TIMANTTI DRILL COLLARS Vasa Dykes • Location of drill collars and Kimberlites discovered to date • Grey background Digital Elevation model • Ice direction characterized by drumlins • Scale bar 500m Grey Wolf White Wolf Black Wolf 20
Slide 21: Timantti Recent Ground & UAV Mag
TIMANTTI RECENT GROUND & UAV MAG Comet Wolf Pack Wolf cubs Meteor New New • Arctic completed a 600 sq km UAV magnetic survey this New Summer, adding and complimenting the Winter ground mag • Greenstones belts and gabbro sills dominate the image as long linear mag highs • Some of the new targets high
Slide 22: Timantti Vasa EM
TIMANTTI VASA EM • The Vasa Dykes coincide with an EM anomaly conductor • All the red zones are prospective in particular those that are on hills (swamps can be false anomalies) • Grey background Digital Elevation model • Contours Magnetics • All the red blobs are possible targets only one tested Va
Slide 23: Timantti Ground Mag: The Wolves
TIMANTTI GROUND MAG: THE WOLVES • Wolves are moderate magnetic highs • Many other similar untested targets, Meteor Target Meteor being the higher priority • Large mag in SE is a gabbro not a kimberlite Grey Kimberlite White Kimberlite • Scale bar is 100m Wolf Cub Black Kimberlite Targets 23
Slide 24: Timantti Ground Gravity Wolves
TIMANTTI GROUND GRAVTIY WOLVES • Wolves are gravity lows • Grey Wolf has a stronger gravity signature • Image is gravity gradient • Black contours mag • Scale bar is 100m Grey Wolf Kimberlite 24
Slide 25: New Discoveries Just the Beginning
NEW DISCOVERIES JUST THE BEGINNING Two Pyropes in the Kimberlite Drill Core Indicator Minerals in the Core Expecting about 1 tonne of total diamond results from last springs drill program. Next stage of work will be to explore and understand this new kimberlite field expected to stretch over 50km in
Slide 26: Canada Dia Gras Project
CANADA DIA GRAS PROJECT • Diavik Diamond Mine recently sold 40% for $1.2B to the Washington Group • Exploration technology for finding diamonds has improved • Magnetics was the principal tool in the 1990’s. Arctic Star (40%) & Margret Lake (60%) is using gravity and EM methods to detect missed phase
Slide 27: Diagras Overview
DIAGRAS OVERVIEW • The Diagras Property (40% owned) consists of 23 contiguous claims encompassing an area of 18,699 hectares • The Property contains 13 known kimberlites which were originally discovered by DeBeers in the 1990's • Margaret Lake, is manager of the joint venture, believes there is the
Slide 28: Diagras Joint Venture
DIAGRAS JOINT VENTURE • Diagras property in Blue JV Arctic Star (40%) & Margret Lake (60%) • Green Diamonds are known kimberlites • The Blue Diamonds are known Kimberlites with mine plans that have Greater than 1ct/t • Property lies along the ”Diavik” economic kimberlite corridor • The Exploration p
Slide 29: Diagras Project
DIAGRAS PROJECT • Color patches Ground Geophysical surveys covered in spring 2017 • (7) Green dots that are known kimberlites are yet to be covered. The Lac de Gras and Slave Craton kimberlites demonstrate complex emplacement histories with multiple kimberlite events and phases • The premise is work
Slide 30: Diagras Diamond Bearing Kimberlites
DIAGRAS DIAMOND BEARING KIMBERLITES Kimberlite Name Details Lyndsey No information available Hardy Lake HL-04 (TAZ) Magnetic low under lake, possibly HK Dodi No information available Near EM conductor in lake Hardy Lake HL-02 VK, rVK, wood, EM, weak -ve MAG, Diamond Size (mm) >150m in size or twin p
Slide 31: Black Spruce Kimberlite Mag Survey 2017
BLACK SPRUCE KIMBERLITE MAG SURVEY 2017 • Ground Mag data (TMI) contours are from the next slide gravity image; red arrows point to same targets depicted in the gravity. • The dots represent previous drilling that targeted the magnetics and ignored the gravity • Yellow dots from previous explorers d
Slide 32: Black Spruce Kimberlite Gravity Survey 2017
BLACK SPRUCE KIMBERLITE GRAVITY SURVERY 2017 • Ground gravity data colored, 0.25 miligal anomaly • Bathymetrically corrected • Yellow Dots De Beers drilling • Red Dots Majescor Drilling • Red Arrows point to untested Kimberlite like gravity targets • Yellow Dots did not intercept Kimberlite • Pyrocl
Slide 33: Jack Pine Kimberlite Gravity Survey 2017
JACK PINE KIMBERLITE GRAVITY SURVERY 2017 • Ground geophysical surveys covered in spring 2017 • Color image Ohm Mapper EM results, 380m Elevation Slice • Contours Ground Magnetics • Red and yellow dots previously drilling by other parties • Red arrow large untested EM anomaly 33
Slide 34: Suzanne Drill Target
SUZANNE DRILL TARGET The assumption is that the previously discovered Suzanne Kimberlite is the magnetic low, (see blue Gravity arrow). Ground Geophysical surveys covered in spring 2017. A second target has been discovered from our work showing a separated gravity low, and linear Em anomaly coincide
Slide 35: DG007 Kimberlite Target
DG007 KIMBERLITE TARGET DG007 is a distinct mag low, like many of the Lac De Gras kimberlites, the previous explorers, drilled, but only hit granite, they did not explain the magnetic anomaly The drill collars still have drill steel and are making a small mag anomaly. This is also has a coincident a
Slide 36: HL02 Drill Target
HL02 DRILL TARGET Two drill holes where previously drilled into a magnetic low Kimberlite was intersected and will be drill tested in 2019. The depicted by the red arrow. EM anomaly shown above and located on the magnetic image by the black arrow, seems to break a Diabase dyke 36
Slide 37: Stein Project Location & Option with GGL
STEIN PROJECT LOCATION & OPTION WITH GGL • GGL Resources Corp. has the option to earn into Arctic Star’s Stein Project up to 60% by conducting ground geophysics on high priority drill targets and discovering kimberlite by drilling, trenching or in outcrop • Stein property owns 4 permits covering 1,0
Slide 38: Indicator Minerals and Geochemistry
INDICATOR MINERALS AND GEOCHEMISTRY High quality G10 indicator minerals down ice from drill targets Strong diamond indicator minerals with high chrome & low calcium 38
Slide 39: Airborne Magnetics
AIRBORNE MAGNETICS • Low level Heli-borne magnetics, 100 meter line spacing with anomaly specific 50 meter infill • Numerous discrete magnetic anomalies up-ice of geochemistry • Drill ready, geophysics complete • Due to our dedication to the Finland project we 39
Slide 40: Cap Project
CAP PROJECT • 21 mineral tenures covering an area of 10,482ha • 85 km northeast of Prince George BC, Good Infrastructure, Forestry Land • Recently discovered a Niobium bearing Carbonatite Complex • Outcropping 0.96% Nb 40
Slide 41: Highlights of Drill Results
HIGHLIGHTS OF DRILL RESULTS • Highlights from drill hole CAP17-004 are summarized as follows: • 85.24 meters to 95.66 meters -- 0.35 per cent Nb2O5 across 10.42 meters, including 2.26 meters of 0.63 per cent Nb2O5 • 98.87 meters to 118.50 meters -- 19.63 meters of 9.94 per cent P2O5, including 2.55
Slide 42: Contact Details
14TH FLOOR - 1111 W. GEORGIA ST. VANCOUVER, B.C. V6E 4M3 WWW.ARCTICSTAR.CA Scott Eldridge, President & CEO 604-722-5381 SCOTT@ARCTICSTAR.CA 42
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