Arctic Star Exploration Corp. · TSXV:ADD
Arctic Star Exploration — Investor Presentation (March 2019)
32 slides from Arctic Star Exploration's investor presentation, March 2019
Slide 1: Corporate Presentation March 2019
TSX-V: ADD | FRA: A182.F CORPORATE PRESENTATION MARCH 2019
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: Board of Directors & Management
BOARD OF DIRECTORS & MANAGEMENT Patrick Power Buddy Doyle Roy Spencer Scott Eldridge PRESIDENT & CEO, VP EXPLORATION, COUNTRY MANAGER, DIRECTOR DIRECTOR DIRECTOR DIRECTOR Thomas Yingling Sean Charland Bill Ferreira Binny Jassal DIRECTOR DIRECTOR DIRECTOR CFO, DIRECTOR 3
Slide 4: World Diamond Rough Prices
WORLD DIAMOND ROUGH PRICES Gains made in early 2018 have been lost in the later part of that year, stabilizing now. Most of the price pressure is in the small good, less than 3 pointers (0.3 carats). Mainly due to producers reprocessing old tailing where smalls dominate, therefore short lived.
Slide 5: World Diamond Production Forecast
WORLD DIAMOND PRODUCTION FORECAST ↓ The world consumes 127 million carats of rough diamonds per year. That’s equivalent to the reserve of a medium size diamond mine per year. Argyle diamond mine is scheduled to close 2020. Udachnya and Mir diamond mines have recently closed. Very little global diamo
Slide 6: Diamond Pipeline – Producers Have the Highest Profit Margins
DIAMOND PIPELINE – PRODUCERS HAVE THE HIGHEST PROFIT MARGINS Rough Diamonds Polished Jewelry Cutting Jewelry Production Sales and Sales manufacturing Retail polishing 35% of Market Top 5 Control Controlled by No. of Players ~100 ~5,000 ~10,000 70% largest Retailers Margins 22-24% 1-3% 2-4% 9-11% $87
Slide 7: Exploration Steps to Production
EXPLORATION STEPS TO PRODUCTION 7
Slide 8: Diavik Mine Multi Billion Dollar Diamond Mine Discovery
MULTI BILLION DOLLAR DIAVIK MINE DIAMOND MINE DISCOVERY Buddy Doyle (Photo above) leader of the exploration team that discovered the Diavik Diamond Mine in Canada. Diavik has produced over 100 million carats since 2003. Vice President Exploration Arctic Star Exploration Inc. Diavik is operated by Ri
Slide 9: Grib Mine Multi Billion Dollar Diamond Mine Discovery
MULTI BILLION DOLLAR GRIB MINE DIAMOND MINE DISCOVERY Roy Spencer (Photo above) leader of the team that discovered the Grib Diamond Mine in Russia. Same geological setting as our Timantti diamond project. Otkritie Industrial Investments purchased Grib for 1.45B. AGD Diamonds recently consolidated wi
Slide 10: Timantti Project Finland – A New Diamond Bearing Kimberlite Field
TIMANTTI PROJECT FINLAND – A NEW DIAMOND BEARING KIMBERLITE FIELD TIMANTTI : This is the word for Diamonds in Finnish. The Worlds most recently Timantti recognised new diamond bearing Project kimberlite field. Finland Was Ranked as World’s #1 Mining Jurisdiction in the world by the Fraser Institute
Slide 11: Arctic Star Title Kimberlite Timantti – Diamond in Finnish
ARCTIC STAR TITLE KIMBERLITE TIMANTTI – DIAMOND IN FINNISH Exploration Reservations 193,700 Ha RUSSIA Exploration Permit. 289 Ha Explortion Permit application 1000 Ha Wolves Timantti project East of the town of Kuusamo. ARCTIC STAR White, Black and Grey Wolf kimberlites KUUSAMO Vaasa Dykes Kasama Ki
Slide 12: Timantti – World Class Infrastructure
TIMANTTI – WORLD CLASS INFRASTRUCTURE The Timantti project lies between Kuusamo and the Russian border to the east. It has excellent infrastructure. It is possible to get taxi from the airport to our first kimberlite discoveries 24 Air photo Kuusamo. Kuusamo lies on crossroads of kilometers away. So
Slide 13: Timantti History – 2018 Work Program
TIMANTTI HISTORY – 2018 WORK PROGRAM 4 Diamond Bearing Kimberlites Discovered Ground Geophysics Complete: Magnetic, Gravity and EM Surveys Excavator Till Sampling: 20 Samples ~50lbs Drilled Approximately 600m 13
Slide 14: Timantti – Drill Collars
TIMANTTI – DRILL COLLARS Location of drill collars and Kimberlites Vasa Dykes discovered to date Grey background Digital Elevation model Grey Wolf Ice direction characterized by drumlins Scale bar 500m White Wolf Black Wolf 14
Slide 15: The Three Wolves
THE THREE WOLVES Plan showing the drilling at the three wolves, Grey, Black and White left to right. They occur within 300m of each other. They are not classic Kimberlite pipes. Current interpretation is they are part of a dyke, sill system, 30m wide dipping to the North @ 35 degrees There is eviden
Slide 16: Timantti – White Wolf Diamond Results
TIMANTTI – WHITE WOLF DIAMOND RESULTS Sample Total Kimberlite +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Weight Kg Stones White 262.33 393 168 95 62 18 11 7 3 758 Wolf 2018 White 147.60 123 85 41 19 9 5 0 2 274 Wolf 2017 Total 409.93 516 253 136 81 27 16 7 5 1,032 White Wolf h
Slide 17: Timantti – Diamond Results
TIMANTTI – DIAMOND RESULTS Sample Total Kimberlite +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Weight Kg Stones Grey Wolf 101.66 29 14 13 8 1 1 0 0 66 (Drill) Grey Wolf 99.98 28 18 20 8 1 2 0 1 78 (Trench) Black 349.75 267 138 87 45 16 3 3 0 559 Wolf Vasa 25.74 1 5 5 0 0 0 0 0
Slide 18: Diamond Indicator Minerals
DIAMOND INDICATOR MINERALS Vaasa Historic public data and recent till samples taken by Arctic Star show a Wolves clear dispersion trains of diamond indicator minerals east of Kuusamo. The Known Kimberlites discovered to date can not explain all the indicator minerals, proof that there are more kimbe
Slide 19: Timantti – New Targets
TIMANTTI – NEW TARGETS Comet Wolf Cubs Wolf Pack Meteor Arctic completed a 600 km2 UAV magnetic survey this New Summer, adding to our Winter ground Mag New New Greenstones belts and gabbro sills dominate the image as long linear Mag highs New Some of the new targets highlighted, arrows, kimberlite t
Slide 20: Timantti – New Targets Continued
TIMANTTI – NEW TARGETS CONTINUED Wolf Cubs 38 New untested drill targets for 2019. Red Gen 2 New Drill Targets arrows point to the top priority targets. Vasa Discovery Wolf Pack Discovery As little as 1-3 m overburden. Comet Target (Drill Target) The Wolves seem to form an East-West trend (Wolf Cubs
Slide 21: Timantti – New Targets Continued
TIMANTTI – NEW TARGETS CONTINUED Mag filter designed to highlight kimberlite like targets. Boxes highlight targets in new Exploration permit. Blue arrows show targets in current permit. 21
Slide 22: Canada – Diagras Project
CANADA – DIAGRAS PROJECT Diavik has produced over 100 million carats of diamonds since 2003. It’s currently operated by Rio Tinto and sold 40% to the Washington Group for $1.2B. The Diagras Property (40% Arctic Star & 60% Margaret Lake) consists of 29 contiguous claims encompassing an area of 22,595
Slide 23: Diagras – Joint Venture
DIAGRAS – JOINT VENTURE Diagras property in Blue JV Arctic Star (40%) & Margret Lake (60%). The Property contains 13 known kimberlites discovered by DeBeers with Mag in the 1990's. We are targeting non-magnetics using new and improved gravity technology. Green Diamonds are kimberlites. Blue Diamonds
Slide 24: Diagras – Black Spruce Kimberlite
DIAGRAS – BLACK SPRUCE KIMBERLITE MAG SURVEY 2017 GRAVITY SURVERY 2017 New Drill Targets Yellow Dots (De Beers) Red Dots Gravity surveys show contrasts of Pyroclastic (Majescor) previous drill holes. Kimberlite and kimberlite breccia revealing rock that is less dense than the surrounding country roc
Slide 25: Diagras – Jack Pine Kimberlite
DIAGRAS – JACK PINE KIMBERLITE Spring 2017 ground geophysical surveys Gravity Color image Ohm Mapper EM results, Survey 380m Elevation Slice Contours Ground Magnetics Red and yellow dots previously drilling by previous explorers Red arrow large untested EM anomaly Diamond Size (mm) Kimberlites Sampl
Slide 26: Diagras – Suzanne Kimberlite
DIAGRAS – SUZANNE KIMBERLITE Gravity Suzanne Kimberlite is assumed to be a magnetic low, (blue arrow). Ground Geophysical surveys conducted in spring 2017. A second drill target has been discovered showing a separated gravity EM low, and linear Em anomaly coincident with a break in a Diabase dyke. 2
Slide 27: Diagras – HL02 Kimberlite
DIAGRAS – HL02 KIMBERLITE Two drill holes where previously drilled into a Kimberlite was intersected. The EM anomaly magnetic low shown by the red arrow. shown above and located on the magnetic image by the black arrow, seems to break a Diabase dyke 27
Slide 28: 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 1,065
Slide 29: Indicator Minerals on Airborne Magnetics
INDICATOR MINERALS ON AIRBORNE MAGNETICS Indicator minerals include diamond inclusion chemistry Numerous high priority targets with kimberlite-like airborne geophysical signatures up-ice of indicator minerals Nearest known kimberlites is 240km to SE; perpendicular to regional ice flow No previous dr
Slide 30: CAP Project – Drill Hole CAP 17-004
CAP PROJECT – DRILL HOLE CAP 17-004 0.35% Nb2O5 across 10.42 m, including 85 km Northeast of Prince George, BC 24 m to 95.66 m 2.26 m of 0.63% Nb2O5 Canada. Good Infrastructure, Forestry. 19.63 m of 9.94% P2O5, including 2.55 87 m to 118.50 m 21 Mineral tenures covering 10,482ha m of 20.97% P2O5 1 m
Slide 31: Arctic Star - Capital Structure
ARCTIC STAR- CAPITAL STRUCTURE Ticker TSX-V: ADD Shares Issued 112,351,363 Options 9,341,661 Warrants 32,137,100 Total Shares Outstanding 153,830,124 31
Slide 32: Contact – Vancouver, B.C.
14TH FLOOR - 1111 W. GEORGIA ST. VANCOUVER, B.C. V6E 4M3 WWW.ARCTICSTAR.CA Patrick Power, President & CEO 604-689-1799 INFO@ARCTICSTAR.CA 32
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