Arctic Star Exploration Corp. · TSXV:ADD
Arctic Star Exploration — Investor Presentation (December 2019)
32 slides from Arctic Star Exploration's investor presentation, December 2019
Slide 1: Corporate Presentation December 2019
TSX-V: ADD | FRA: A182.F CORPORATE PRESENTATION DECEMBER 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 3
Slide 4: World Diamond Rough Prices
WORLD DIAMOND ROUGH PRICES Rough Diamond price have moved sideways in 2019 to slightly lower Argyle closure in 2020 should have a ripple effect 5% of supply by value, 20% by volume. Indian Banks have replaced the Antwerp banks as debt providers for rough diamond collateral Supply line is debt
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: Finland Timantti – Diamond Exploration
FINLAND TIMANTTI – DIAMOND EXPLORATION 7
Slide 8: Diavik Mine Multi Billion Dollar Diamond Mine Discovery
DIAVIK MINE MULTI BILLION DOLLAR 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. Diavik is operated by Rio Tinto and sold 40% to the Washington Group for $1.2B.
Slide 9: Grib Mine Multi Billion Dollar Diamond Mine Discovery
GRIB MINE MULTI BILLION DOLLAR DIAMOND MINE DISCOVERY Roy Spencer (Photo above) led the team that discovered the Grib Diamond Mine in Russia, the 8th largest diamond mine in the world. Same geological belt as our Timantti diamond project. Otkritie Industrial Investments purchased Grib for 1.45B. AGD
Slide 10: Regional Till Sample – More to Be Found
REGIONAL TILL SAMPLE – MORE TO BE FOUND Arctic Star and previous workers Vasa have found numerous diamond indicator minerals in the till samples Wolves Red dots are indicator minerals, the large the dots have more indicators Topo map in purple shade are our exploration reservations Blue boxes show a
Slide 11: Timantti Finland – A New Kimberlite Field
TIMANTTI FINLAND – A NEW KIMBERLITE FIELD Finland Was 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. Same Geo
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 2 More Kimberlites Discovered Ground Geophysics Complete: Magnetic, Gravity and EM Surveys Excavator Till Sampling: 20 Samples ~50lbs Drilled Approximately 600m 13
Slide 14: Timantti – Exploration Reservation
TIMANTTI – EXPLORATION RESERVATION RUSSIA Exploration Reservation 193,700 Ha Covers the extent of the large kimberlite indicator plume known from the Russian border. Wolves Public data thought to outline the KUUSAMO ARCTIC STAR extent of Timantti project kimberlite field. ICE DIRECTION AND LOCATION
Slide 15: Timantti – Kimberlite Field Discovery
TIMANTTI – KIMBERLITE FIELD DISCOVERY Vasa Dykes Plug and Karhu White, Black, & Grey Wolf Kimberlites 15
Slide 16: 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 17: 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 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
Slide 18: Timantti – Drill Collars
TIMANTTI – DRILL COLLARS Plug & Karhu Location of drill collars and Kimberlites Vasa Dykes discovered to date Karhu and Plug are new summer 2019 Grey Wolf discoveries, diamond results awaited Grey background Digital Elevation model Ice direction characterized by drumlins White Wolf Scale bar 500m 18
Slide 19: Timantti – New Targets
TIMANTTI – NEW TARGETS Wolf Comet Cubs Wolf Pack Meteor New New Arctic completed a 600 km2 UAV magnetic survey New this Summer, adding to our Winter ground Mag New Greenstones belts and gabbro sills dominate the image as long linear Mag highs Some of the new targets highlighted, arrows, kimberlite t
Slide 20: Timantti – New Targets Continued
TIMANTTI – NEW TARGETS CONTINUED Karhu Plug Wolf Pack Gen 2 New Drill Targets 38 New untested drill targets for 2019. Red Vasa Discovery arrows point to the top priority targets. Wolf Pack Discovery Comet Target As little as 1-3 m overburden. (Drill Target) The Wolves seem to form an East-West trend
Slide 21: Timantti – New Discovery Karhu
TIMANTTI – New Discovery Karhu Karhu Discovered by Excavator in Summer 2019 21
Slide 22: Timantti – Plug New Discovery
TIMANTTI – Plug New Discovery Plug Discovered by Excavator in Summer 2019 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 low, and linear Em anomaly coincident EM with a break in a Diabase dyke. 2
Slide 28: 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. 28
Slide 29: 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 30: 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 31: Arctic Star Share Structure
ARCTIC STAR SHARE STRUCTURE Shares 25,962,854 Options 2,256,750 Warrants 5,376,548 Fully Diluted 33,596,152 31
Slide 32: Contact – Vancouver, B.C.
Floor 1100 - 1111 MELVILLE ST. VANCOUVER, B.C. V6E 3V6 WWW.ARCTICSTAR.CA Patrick Power, President & CEO 604-689-1799 INFO@ARCTICSTAR.CA 32
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