North Arrow Minerals Inc. · TSXV:NAR
North Arrow Minerals — Investor Presentation (January 2022)
26 slides from North Arrow Minerals's investor presentation, January 2022
Slide 1: Canada's Future in Diamonds
TSXV: NAR CANADA’S FUTURE I N D I A M O N D S Corporate Overview – January 2022
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains projections and forward-looking information that involve various risks and FORWARD- uncertainties, including, without limitation, statements regarding the potential extent of mineralization, LOOKING resources, reserves, exploration results and plans an
Slide 3: Corporate Overview – as of Dec 17, 2021
CORPORATE OVERVIEW – as of Dec 17, 2021 24 12 MONTH STOCK CHART CHART CORPORATE HIGHLIGHTS MAIN SHAREHOLDERS Insiders 26% CAPITALIZATION TSX Venture NAR Float Issued: 120.9 M 46% 9% Options: 11.4 M Lundin 9% Warrants: 49.0 M 9% (25 M @ $0.225, 17.9 M @ $0.10) Electrum Fully diluted: 181.3 M Ross Bea
Slide 4: Corporate Profile
CORPORATE PROFILE D. Grenville Thomas (Chairman) Founder of Aber Resources, discoverer of the Diavik Diamond Mine; Canadian Mining Hall of Fame inductee. MANAGEMENT HIGHLIGHTS Ken Armstrong P.Geo. (President, CEO, Director and Qualified Person under NI 43-101) Diamond exploration & evaluation experi
Slide 5: Polished Market Positivity: US Jewelry Sales
RWE POLISHED MARKET POSITIVITY: US JEWELRY SALES “US Jewelry Sales Explosion Continues, Surges 50% in November” Edahn Golan is a Veteran of the diamond industry, Monthly US Jewelry Sales for Last Five Years researching & writing about it since 2001 “After US jewelry sales rose 36% (yoy) in Oct., the
Slide 6: Polished Market Positivity
POLISHED MARKET POSITIVITY Tiffany achieved "a remarkable performance" in the Q3 (2021) January 2021: LVMH finalized purchase of according to LVMH's Tiffany & Co. for US $15.8 billion Chris Hollis (with help from Beyonce and Jay-Z?) The biggest luxury brand acquisition ever!! “Particularly strong" i
Slide 7: Polished Market Positivity
POLISHED MARKET POSITIVITY China’s biggest & world’s most valuable jewelry retailer. Chow Tai Fook new store openings from 2013 to 2021 4850 stores as of 4 850 June 30th, 2021 Sept. 30th, 2021 – Chow Tai Fook Announces plans to open more than 7,000 stores by FY2025 to capitalize on the increasing do
Slide 8: Mid-Stream Cutting & Polishing
MID-STREAM CUTTING & POLISHING Note: This analysis is meant to take into account all midstream inventory, i.e. not just manufacturer “rough-to-polished” inventory, but also inventory held by rough and polished wholesalers and secondary-market traders. “Estimated sustainable level of inventory” is in
Slide 9: Recent Rough Diamond Market News
RWE RECENT ROUGH DIAMOND MARKET NEWS Demand has improved on concerns about long term supply Mountain Province November 9th, 2021 • US$74 M in revenue in Q3 from just over 1 million carats; EBITDA of US$33 million • 2nd highest in a quarter for the company since mine startup. Alrosa November 1st, 202
Slide 10: Global Rough Diamond Price Index 2021
GLOBAL ROUGH DIAMOND PRICE INDEX 2021 Rough diamond prices have risen 24.9% in 2021 Paul Zimnisky, CFA is a leading global diamond industry analyst based in the New York City metro area specializing in global diamond supply/demand fundamentals and the companies operating within the industry 10
Slide 11: Global Rough Diamond Price Index Since 2007
GLOBAL ROUGH DIAMOND PRICE INDEX SINCE 2007 Paul Zimnisky, Jan. 2022 Market Update: “Year-over- year upstream production declined in 2018, 2019 and 2020 and production is forecast to remain well-off the 2017 high-water mark through at least 2027.” Annual Global Rough Production Production has been d
Slide 12: Lab Grown Diamond Market
LAB GROWN DIAMOND MARKET HISTORICAL COMPARABLE: THE CULTURED PEARL INDUSTRY Pearl exports and price per gram of pearl exports from French Polynesia, 1980-2005 From: the Economics of Pearl Farming, January 2008: by Clem Tisdell and Bernard Poirine With pricing not linked to natural diamonds, LGD beco
Slide 13: Corporate Overview – Projects
CORPORATE OVERVIEW – PROJECTS PROJECT Advanced Stage Assessing a known kimberlite or diamond deposit 1. Naujaat (100%) Significant diamond inventory; PIPELINE potential value upside: fancy orange-yellow diamonds New partner earning 40% Next stage of diamond exploration Discovery Stage could lead to
Slide 14: Naujaat Diamond Project
NAUJAAT DIAMOND PROJECT PROJECT Advanced Stage Assessing a known kimberlite or diamond deposit PIPELINE Naujaat (100%) • Largest Canadian diamond resource 100% owned by a junior company • New partnership with Burgundy Diamond 1 Mines (BDM – ASX) • BDM funding a $5.6M, 2000 tonne sample extracted Jul
Slide 15: Naujaat Project – Deal with Burgundy
NAUJAAT PROJECT – DEAL WITH BURGUNDY • Burgundy funding the current C$5.6 million Phase 1 bulk sample, including collection and processing, to earn 40% of project Australian listed company newly • Letter of Intent (LOI) in place for Phase 2 (results dependent), where Burgundy can elect to focused on
Slide 16: Naujaat - Further Derisking an Advanced Project
NAUJAAT - FURTHER DERISKING AN ADVANCED PROJECT These important diamond project risk hurdles have already been cleared at Q1-4 PROJECT NOT about kimberlite discovery PIPELINE NOT about size of deposit THIS BULK SAMPLE is… NOT about mineral chemistry (collected in July & Aug of 2021) NOT about microd
Slide 17: Q1-4 Sample: 3 Pits, 2 Phases Sampled, 2000 Tonnes
Q1-4 SAMPLE: 3 PITS, 2 PHASES SAMPLED, 2000 TONNES PIT B & D Sampling Unit A28 PIT E Sampling Unit A88 Approximate surface trace of the Q1-4 kimberlite (~12 ha) Image view: Looking northwest 17
Slide 18: Bulk Sample Process from Ground to Lab
BULK SAMPLE PROCESS FROM GROUND TO LAB PIT D PIT B 18
Slide 19: Sample Processing – Diamond Recovery
SAMPLE PROCESSING – DIAMOND RECOVERY TOMRA XRT Optical Sorting Dense Media Separation (DMS) Processing Diamonds Heavy Mineral Concentrate • Sample delivered to the • Same technology now used at most Saskatchewan Research Council diamond mines; separates diamonds (SRC) in Oct - Nov 2021 based on atom
Slide 20: Diamond Results: What Does Success Look Like
DIAMOND RESULTS: WHAT DOES SUCCESS LOOK LIKE Nitrogen aggregation studies show the yellow and white Q1-4 Grade/Size Curve Comparative Curves Potential value upside is diamonds distinct populations based on coarse SFD alone; Yellow diamonds so far have shown a much coarser size does not factor in tha
Slide 21: Naujaat Project – Ticks All the Boxes
NAUJAAT PROJECT – TICKS ALL THE BOXES ✓ Jurisdiction Clear permitting path in Nunavut ✓ Near tide water Freight costs 50% of NWT diamond mines ✓ Large tonnage ~48 Mt down to 205m below surface ✓ Low strip ratio <3:1 vs >10:1 for NWT diamond mines ✓ Significant diamond inventory* ~26M contained carat
Slide 22: Pikoo Diamond Project, SK
PIKOO DIAMOND PROJECT, SK Next stage of diamond exploration Discovery Stage could lead to discovery PROJECT 5. Pikoo (100%) Kimberlite Field discovered by North Arrow PIPELINE EKATI DIAVIK GAHCHO KUE Excellent diamond potential 5 RENARD VICTOR EXISTING DIAMOND MINE 23
Slide 23: Pikoo Project, SK
PIKOO PROJECT, SK ▪ Good local infrastructure; within 10 km of SK Hwy 911. PROJECT PIPELINE ▪ 10 discrete kimberlites discovered PK314 & PK346 PK150 ▪ 5 tested and proven diamondiferous PK312 PK311 ▪ PK150 – most significant discovery: 1,232 diamonds > 0.106 mm from 531 kg. (100% NAR) 9 24
Slide 24: Pikoo Project, SK
PIKOO PROJECT, SK PK346 PK314 (100% NAR) &“North Pikoo PK347 • Till sampling suggests additional, Dykes” PROJECT unique and unsourced KIM trains ? ? PK312 PK150 PIPELINE • More kimberlite discoveries to be made. (plus PK151 ? and another PK311 dyke) • Autumn 2021 till sampling program ? completed; f
Slide 25: Diamond Discoveries: A Canadian Leader
DIAMOND DISCOVERIES: A CANADIAN LEADER NAR: • One of Canada’s largest under-evaluated diamond inventories Canadian at Naujaat’s Q1-4 kimberlite (~26 million carats) diamond sector’s • Has discovered two new diamondiferous kimberlite fields – most active Mel & Pikoo & successful explorer • 6 drill-re
Slide 26: 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 info@northarrowminerals.com @narminerals northarrowminerals www.northarrowminerals.com
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