Canada’s Most Active Diamond Explorer NAR... · Community and Investor Relations Manager Suite...

TSXV:NARTSXV: NAR

Diamonds in CanadaSymposium

Canada’s Most Active Diamond Explorer

June 20, 2019

CORPORATE OVERVIEW *as of January 31st, 2018

Capitalization

Listing: TSX Venture – NARIssued: 92.8 MOptions: 8.9 M

Warrants: 26.2 M (20 M at $0.40)

Fully diluted: 127.9 MEstimated Working Capital: ~$0.9 M

Main Shareholders

Management/Directors/Advisors ~23.8%

Zebra Holdings and Investments ~10.4%

Electrum Strategic Opportunities Fund ~8.6%

Ross Beaty ~8.6%

Corporate Highlights

2

D. Grenville Thomas (Chairman) Founder of Aber (now Dominion Diamond), discoverer of the Diavik Diamond Mine; Canadian Mining Hall of Fame inductee.

Ken Armstrong P.Geo.(ON) (President, CEO, Director and Qualified Person under NI 43-101) Diamond exploration and evaluation experience with Diavik, Aber, De Beers, Navigator, and Stornoway.

Christopher Jennings (Director) Founder of SouthernEra, consultant to Aber; formerly with International Corona Corp., BP Minerals (Canada) and Falconbridge.

Blair Murdoch (Director) More than thirty years experience in senior management of private and public companies.

Eira M. Thomas (Advisor) Extensive diamond exploration and development experience in Canada and Africa; Founder, CEO & director of Lucara; former officer and director of Aber; former CEO of Kaminak Gold Corporation (acquired by Goldcorp in 2016 for $520 million); currently director of Suncor.

William Lamb (Advisor) Former CEO of Lucara, 20+ years project development experience with Lucara, De Beers, Kvaerner and Rand Mines.

Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.

CORPORATE OVERVIEW - PEOPLE

Management Highlights

3

• Six kimberlite fields discovered in the last six years

• North Arrow discovered two of them: (1) Pikoo & (2) Mel; the only junior explorer to make a discovery in that period.

• Both significantly diamondiferous

J:\1Maps\NorthAmerica\CanadaDEM\DEM

Kimberlite andrelated rocksPre-1981

1981-2012

2013-2018

DIAMOND DISCOVERIES: A CANADIAN LEADER

North American Diamond Exploration

4

1

2

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

Grassroots

7. Timiskaming (JV w SWY) 7

DIAVIKEKATI

VICTOR

RENARD

GAHCHOKUE

Discovery Stage

2. Mel (100%) Kimberlite Field discovery3. Loki (100%) Kimberlite 465 discovered 2018;

1st Lac de Gras discovery in > 5 years4. LDG (JV w Dominion) 2019 drilling & sampling5. Pikoo (100%) Kimberlite Field discovery6. Luxx (100%) Permitted & drill ready

Advanced Stage

1. Naujaat (100%) Significant diamond inventory; potential value upside: fancy orange-yellow diamonds

Assessing a known kimberlite or diamond deposit

8

Brownfields Gold

1

8. Hope Bay (100%)

Next stage of diamond exploration could lead to discovery

2

5

6

Target development

Within 3km of TMAC’s Doris Mine; similar geology and structures

5

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE 6

DIAVIKEKATI

VICTOR

RENARD

GAHCHOKUE

1

Advanced Stage Assessing a known kimberlite or diamond deposit

1. Naujaat (100%) Significant diamond inventory; potential value upside:

Fancy orangey-yellow

& yellow diamonds

Q1-4 DIAMOND DEPOSIT: STATUS

Q1-4 “run of mine” from 2014 sample; +9DTC and

above.

7

2016 – Commenced two phase approach to show value upside of Q1-4 diamonds:1) Cutting/polishing of yellow diamonds2) Analysis of diamond size frequency distributions (SFD)

Primary WWW Conclusions from the 2015 Valuation:• Parcel too small• Yellow diamonds were considered of little interest.

2015 WWW Diamond Valuation based on 384 carats recovered from ~1,350 t$92 per carat modelled “possible high” | $43 per carat modelled “possible low”

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

1. Cut & Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade

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1. Cut & Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade

2. Nitrogen aggregation studies show the yellow and white diamonds distinct populations

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1. Polished Yellow Diamonds:• Certified by GIA as fancy vivid orangey yellow diamonds• Desirable to the luxury gem/jewelry trade

2. Nitrogen aggregation studies show the yellow and whitediamonds distinct populations

3. Yellow diamonds show a much coarser size frequency distribution (SFD) implying potential for higher abundanceof yellow diamonds in coarser sizes

10

Q1-4 Grade/Size CurveComparative Curves

Total Parcel

‘Dark Yellow’only






4. 2015 possible low to high model prices applied to the coarse yellow SFD scenario results in low to high price range of$60 to $220 per carat

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Q1-4 Grade/Size CurveComparative Curves

Total Parcel

‘Dark Yellow’only






4. 2015 possible low to high model prices applied to the coarse yellow SFD scenario results in low to high price range of$60 to $220 per carat

5. At this price the project is very attractive

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Potential value upside is based on coarse SFD

alone; does not factor in that yellow diamonds

are fancy coloured, worth a premium price, and of interest to luxury

jewelry trade

Q1-4 - LARGE TONNAGE, EASY ACCESS

~700m

~200m

Q1-4 looking southwest: 12.5 ha kimberlite

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• Easy surface access to A28, A61 & A88 phases

• Current Q1-4 resource ~48Mt to 205m depth

• Modelling suggests extending the resource to 300m depth could result in strip ratio < 3:1

• 2017 drilling extended Q1-4 below 300m

Q1-4 DELINEATION DRILLING

• Several deep drill holes remained in kimberlite >100m beyond the current model and well below 300m from surface.

14

B Looking North

Current TFFE

0 m

100 m

300 m

200 m

B

A

A’

B’

2017 drill holes on 2013 resource model

Looking West

A A’0 m

100 m

300 m

200 m

B’

Current TFFE

• Take advantage of access trail & free digging character - reduced cost & more local investment

• Test at least 3 phases (A28, A88, & A61)

NAUJAAT PROJECT – WAY FORWARD

Timeline: Sample collection & diamond recoveries in 2020

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~ 10,000t bulk sample from Q1-4

Sample Collection:

• Access could allow for on site processing: i) simultaneous collection/processingii) staged diamond recoveryiii) faster results

• Innovative flow sheet & TOMRA optical sorting

Sample Processing Options:

Bulk Sample funding:• Non-dilutive, project level funding options

Sample Goal:• Confirm coarse SFD & value

upside of orange – yellow diamonds

• Economic diversification -i) Access to aggregateii) Access to carving stoneiii) Tourism (outfitters; education)iv) Evaluation of Q1-4

• Safer access to the land for traditional land use activities and education

• Hamlet is project proponent• Entirely within municipal boundary• Permitting & funding are underway

NAUJAAT PROJECT – WAY FORWARD

Timeline: Start construction in 2019 18

Community Access Trail

Community led initiative:

Economic & Cultural opportunities:

Funding:

• Applications submitted for Territorial and Federal government funding

1919Access Trail ATV Upgrade:Access Trail New Alignment:Spur Road: Kimberlite:Bridge:Culvert:Aggregate Deposit:

11 km4 km

1.5 km

Q1-4 10,000 TONNE BULK SAMPLE PLAN

NAR Laydown

Q1-4 Kimberlite

PROCESSING OF SAMPLE IN THE NORTH

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Q1-4

A34A94

A76

RENEWED EVALUATION OF OTHER KIMBERLITES

A94• ~10 hectares• Diamondiferous• 2 angled drill

holes (@450)• Both >300m &

ended in kimberlite

All are under-evaluated with limited drillingSimilar age & mantle sample as Q1-4

• ~3 hectares• Diamondiferous• 2 angled drill

holes (@450)• 1 hole ends in

kimberlite

A34

• ~3 hectares• Diamondiferous• 3 angled drill

holes

A76:

20

21


22

A34

A94

A97

A76

A42

A152A59


22


A34

A94

A97

A76

A42

A152A59

22

A94

A97

A76

A42

A152

A59


A34

A34 Cross Section - Looking West

100 m

2003-08-082003-08-07

EOH 174 mEOH 197 m220 m


2003-08-08

2003-08-07

220 m?

satellite image airborne magnetics airborne EM 6200 Hz

Kimberlite A34

23

24


A34

A94

A97

A76

A42

A152A59

24


2003-08-25

2003-08-14

385 m

satellite image airborne magnetics airborne EM 6200 Hz

2003-08-142003-08-25

100 m385 m

?

EOH 320 mEOH 305 m

A94 Cross Section - Looking Northwest

Kimberlite A94


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$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$1.6 $2.5 $4.0 $4.1 $5.1 $5.2 $5.9 $6.1 $6.3 $10

$79

MARKET CAP (IN MILLIONS)OF CANADIAN JUNIOR DIAMOND EXPLORERS

MARKET CAP COMPARISONS (as of June 18, 2019)

Mill

ions

of d

olla

rs

30

MARKET CAP COMPARISONS (as of June 18, 2019)

$-

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

North Arrow Stornoway Lucapa Gem Petra MountainProvince

Lucara

$5.1 $23 $67

$178

$320

$415

$639

MARKET CAP IN MILLIONS – NORTH ARROW VS. DIAMOND PRODUCERS

Mill

ions

of d

olla

rs

31

WAY FORWARD – SUMMARY TIMELINE

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• Fabrication – Fall 2019 / Winter 2020• Delivery / Commissioning – Summer 2020

• Groundworks / sampling – Summer 2020• Completion – Summer 2021• Diamond Results – Fall 2020 thru Fall 2021

Processing Plant: Design Engineering – In Progress

Access Trail: Permitting & Funding – In Progress

• Construction start – Summer 2019• Construction completion – Summer 2020

Exploration Potential: Detail Review & Evaluation –In Progress

Bulk Sample: Permitting – In Prep.; Submit Sept. 2019Funding – Ongoing; Fall 2019

There is no other diamond project in the world at this stage of assessment without the involvement of a diamond producer.

Diamond value is the last variable. All the

other boxes are ticked.

• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4 kimberlite (~26 million carats) – clear evaluation path & soon to have road access!

• Two new diamondiferous kimberlite fields – Mel & Pikoo

• 465 – first Lac de Gras kimberlite discovery in over 5 years

• 6 drill-ready (and fully permitted) diamond properties; including 5 thathost known diamondiferous kimberlite – Naujaat, Mel, Pikoo, Loki & LDG

DIAMOND DISCOVERIES: A CANADIAN LEADER

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NAR: Canadian diamond sector’s most active & successful explorer over the last 6 years

TSXV: NARKen Armstrong

President & CEO

Nick ThomasCommunity and Investor

Relations Manager

Suite 960-789 West Pender StreetVancouver, BC

Canada V6C 1H2Tel: +1.604.668.8354Fax: +1.604.336.4813

[email protected]

www.northarrowminerals.com

@narminerals

northarrowminerals

Canada’s Most Active Diamond Explorer NAR... · Community and Investor Relations Manager Suite...

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