Canada's Most Active Diamond Explorer - TSXV:NAR - North Arrow Minerals
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TSXV: NAR
TSXV:NAR
Canada’s Most Active
Diamond Explorer
PDAC 2020
CAUTIONARY STATEMENT
This presentation contains projections and forward-looking information that involve
various risks and uncertainties, including, without limitation, statements regarding the
potential extent of mineralization, resources, reserves, exploration results and plans and
objectives of North Arrow Minerals Inc. These risks and uncertainties include, but are
not restricted to, the amount of geological data available, the uncertain reliability of
drilling results and geophysical and geological data and the interpretation thereof and
Forward
the need for adequate financing for future exploration and development efforts. There
Looking
Information can be no assurance that such statements will prove to be accurate. Actual results and
future events could differ materially from those anticipated in such statements. These
and all subsequent written and oral forward-looking statements are based on the
estimates and opinions of management on the dates they are made and are expressly
qualified in their entirety by this notice. The Company assumes no obligation to update
forward looking statements should circumstances or management's estimates or
opinions change.
Qualified Disclosure of a scientific or technical nature related to North Arrow’s projects in this
Person under presentation has been reviewed and approved by Ken Armstrong, P.Geo. President and
NI 43-101 CEO of North Arrow and a Qualified Person under NI 43-101.
1
CORPORATE OVERVIEW as of November 12, 2019
Capitalization
Corporate
Highlights Listing: TSX Venture – NAR
Issued: 110.7 M
Options: 10.3 M*
Warrants: 44.4 M (25 M @ $0.225, 17.9 M @ $0.10)
Fully diluted: 165.4 M
Estimated Working Capital: ~$1.0 M
Main Shareholders
Management/Directors/Advisors ~24.4%
Zebra Holdings and Investments ~10.3%
Electrum Strategic Opportunities Fund ~10.3%
Ross Beaty ~8.8%
*Includes stock options issued November 8, 2019 2
CORPORATE OVERVIEW - PEOPLE
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.
Management Blair Murdoch (Director) More than thirty years' experience in senior management of
Highlights private and public companies.
Eira M. Thomas (Advisor) Extensive diamond exploration and development experience
in Canada and Africa; Co-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.
Robin Hopkins (Advisor) 25+ years diamond exploration, evaluation and development
experience with Stornoway, Navigator, and Aber.
Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.
3
CORPORATE OVERVIEW – PROJECTS
Advanced Stage Assessing a known kimberlite or
diamond deposit
1. Naujaat (100%) Significant diamond inventory;
potential value upside: fancy orange-yellow diamonds
Next stage of diamond exploration
Discovery Stage could lead to discovery
8
1 2
2. Mel (100%) Kimberlite Field discovery 2017
EKATI
3. Loki (100%) Kimberlite 465 discovered 2018; DIAVIK 6
1st Lac de Gras discovery in > 5 years GAHCHO
KUE
4. LDGJV (Dominion) Kimberlite discovery in 2019
5. Pikoo (100%) Kimberlite Field discovery 2013
6. Luxx (100%) Permitted & drill ready
5
Grassroots Target development
RENARD
VICTOR 7
7. Timiskaming (JV w SWY)
Within 3km of TMAC’s Doris Mine;
Brownfields Gold similar geology and structures
8. Hope Bay (100%)
EXISTING DIAMOND MINE
4
NAUJAAT PROJECT – TICKS ALL THE BOXES
Q1-4 Kimberlite
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
10:1 for NWT diamond mines
Significant diamond inventory*
~26M contained carats
Blue sky potential
15 additional kimberlites for evaluation
NAR
Unique diamond value Laydown
Area
proposition
* CAUTION – Inferred Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability 5
Q1-4 DIAMOND DEPOSIT: STATUS
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”
Primary WWW Conclusions from the 2015 Valuation:
• Parcel too small
• Yellow diamonds were considered of little interest.
Q1-4 “run of mine” from
2014 sample; +9DTC and
above.
2015 – Commenced two phase approach to show value upside of Q1-4 diamonds:
1) Cutting/polishing of yellow diamonds
2) Analysis of diamond size frequency distributions (SFD)
6
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
7
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
2. Nitrogen aggregation studies show the yellow and white
diamonds distinct populations
8
Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade Q1-4 Grade/Size Curve
2. Nitrogen aggregation studies show the yellow and white Comparative Curves
diamonds distinct populations
Total Parcel
3. Yellow diamonds show a much coarser size frequency
distribution (SFD) implying potential for higher abundance
of yellow diamonds in coarser sizes
‘Dark Yellow’
only
9Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade Q1-4 Grade/Size Curve
2. Nitrogen aggregation studies show the yellow and white Comparative Curves
diamonds distinct populations
Total Parcel
3. Yellow diamonds show a much coarser size frequency
distribution (SFD) implying potential for higher abundance
of yellow diamonds in coarser sizes
4. 2015 possible low to high model prices applied to the coarse
yellow SFD scenario results in low to high price range of ‘Dark Yellow’
$60 to $220 per carat only
10Q1-4 DIAMOND PROJECT: STATUS
How the project advanced (2015 to present):
1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds Q1-4 Grade/Size Curve
• Desirable to the luxury gem/jewelry trade Comparative Curves
2. Nitrogen aggregation studies show the yellow and white
diamonds distinct populations
Total Parcel
3. Yellow diamonds show a much coarser size frequency
distribution (SFD) implying potential for higher abundance
of yellow diamonds in coarser sizes
4. 2015 possible low to high model prices applied to the coarse
‘Dark Yellow’
yellow SFD scenario results in low to high price range of only
$60 to $220 per carat
5. At this price the project is very attractive
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 11Q1-4 - LARGE TONNAGE, EASY ACCESS
Q1-4 looking southwest: 12.5 ha kimberlite
• Easy surface
access to A28,
A61 & A88
phases
• Current Q1-4
resource ~48Mt
to 205m depth
• Modelling
suggests
extending the ~700m
resource to
300m depth
could result in
~200m
strip ratio < 3:1
• 2017 drilling
extended Q1-4
below 300m 12Q1-4 DELINEATION DRILLING
Looking North
B B’
0m
• Several deep drill holes remained in kimberlite 100 m
>100m beyond the current model and well
below 300m from surface.
200 m
Current
TFFE
300 m
A’ Looking West
0m A A’
B
B’
100 m
200 m
A Current
TFFE
2017 drill holes on 2013 resource model 300 m
13WAY FORWARD – OPTION 1: SFD QUESTION FIRST
~ 1,500-2,000t Sample from Q1-4
Permitted & turn-key program
Sample Goal:
• Confirm coarse SFD of orangey-yellow diamonds
Sample Collection:
• Mini-excavators & free digging character
• Helicopter supported
• Test at least 2 phases (A28 & A88)
Sample Processing Options:
• Ship sample south for processing
Pros:
• Staged approach – confirming coarse SFD is binary
• Permit and excavators in place – short ramp up
• Modelled on 2014/15 bulk sample – cost certainty
Cons:
• Diamond value remains unanswered
1 Year Timeline: Sample collection
& diamond recoveries in 2020
14OPTION 1: 1,500-2,000 TONNE SAMPLE IN 2020
Same as 2014 & 2017
Small excavator
Bags delivered by helicopter to
laydown area in Naujaat
Transported by sealift to Montreal
Trucked to laboratory for diamond
recovery
15
8OPTION 2 – SFD AND VALUE QUESTIONS
~ 10,000t bulk sample from Q1-4
Sample Goal:
• Confirm coarse SFD & value
upside of orange-yellow diamonds
Sample Collection:
• Take advantage of free digging character & community
access trail completed in 2020 & 2021 - reduced cost &
more local investment
• Test at least 3 phases (A28, A88, & A61)
Sample Processing Options:
• Access could allow for on site processing:
i) simultaneous collection/processing
ii) staged diamond recovery
iii) faster results
• Innovative flow sheet & TOMRA optical sorting
Bulk Sample funding:
• Non-dilutive, project level funding options
Two Year Timeline: Sample collection
& diamond recoveries in 2021 16OPTION 2 – PROCESSING IN THE NORTH
17OPTION 2 – REQUIRES ACCESS TRAIL
Community Access ATV Trail Upgrade
Q1-4 Kimberlite
Community led initiative:
• Hamlet is project proponent
• Entirely within municipal boundary
• Permitting & funding are underway
Economic & Cultural opportunities:
• Economic diversification -
i) Access to aggregate
ii) Access to carving stone
iii) Tourism (outfitters; education)
iv) Evaluation of Q1-4
• Safer access to the land for traditional land NAR Laydown
Access Trail ATV Upgrade: 11 km
4 km
Access Trail New Alignment:
use activities and education Spur Road:
1.5 km
Kimberlite:
Funding: Bridge:
Culvert:
• Applications submitted for Territorial and Aggregate Deposit:
Federal government funding
Timeline: Start construction in 2020
18ROAD ACCESS: BLUE SKY EXPLORATION
All other kimberlites are under-evaluated with limited
A34 drilling – similar age & mantle sample as Q1-4
• ~3 hectares
• Diamondiferous
• 2 angled drill
holes (@450)
• 1 hole ends in Q1-4
kimberlite
A94
• ~10 hectares
• Diamondiferous
• 2 angled drill
holes (@450)
A34
• Both >300m &
A94
ended in
kimberlite A76
A76:
• ~3 hectares
• Diamondiferous
• 3 angled drill
holes 19RENEWED EVALUATION OF OTHER KIMBERLITES
A34
A94
A76 A152
A59
A42
A97
20RENEWED EVALUATION OF OTHER KIMBERLITES
Kimberlite A34
A34image
satellite airborne EM 6200 Hz
airborne magnetics
220 m
2003-08-08
?
2003-08-07
A34 Cross Section - Looking West
2003-08-07 2003-08-08
100 m
220 m 21RENEWED EVALUATION OF OTHER KIMBERLITES
Kimberlite A94
satellite image airborne magnetics airborne EM 6200 Hz
2003-08-14
2003-08-25
385 m
A94 Cross Section - Looking Northwest
2003-08-25 2003-08-14
?
100 m
385 m 22WAY FORWARD – SUMMARY TIMELINE
Access Trail: Permitting & Funding – In Progress SFD & Diamond value
• Construction start – Summer 2020 (funding needed) are the last variables.
• Construction completion – Late 2020 / early 2021 All the other boxes are
ticked.
Processing Plant: Design Engineering Study
• Fabrication – ~October order to meet June delivery
• Delivery/Commissioning – Earliest Summer 2021 There is no other
diamond project in the
Bulk Sample: Staged Approach world at this stage of
• Currently permitted for 1,500t – Summer 2020 assessment without
• Processing & Results Fall 2020/Spring 2021 the involvement of a
• 10,000t sample – requires access road
• Permitting required (drafting stage)
diamond producer.
• Earliest collection - 2021
Exploration Potential: Detail Review & Evaluation –
In Progress
23CORPORATE OVERVIEW – PROJECTS
Discovery Stage
2
Mel Project (100%)
2
EKATI
DIAVIK
GAHCHO
KUE
RENARD
VICTOR
EXISTING DIAMOND MINE 24MEL KIMBERLITES – EXCELLENT MANTLE SAMPLE
ilmenite
pyrope
garnet
olivine
25MEL PROJECT - MICRODIAMOND RESULTS
Sample Number of Diamonds per Sieve Size (mm Square Mesh Sieve)
Body Weight +0.106 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850 Total
Dry Kg -0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.18 Stones
ML8 (Lower) 24.15 0 3 0 2 1 1 1 8
ML8 (Upper) 270.5 20 16 17 10 1 2 3 69
1 cm
*Stones per tonne per Unit Interval
26NEW KIMBERLITE TARGETS - NORTH TRAIN
2018 sampling
extended the
train further to
the north;
sample 600m
north of the ML8 Upper and
Lower Kimberlites
ML8 kimberlite
had 34 KIMs
ML345 Kimberlites
27MEL PROJECT – WAY FORWARD
OCEAN
ML-8 Upper
ML-8 Lower
WAY FORWARD
Camp is in Place
Geophysics
Till Sampling
Prospecting
ML-345
Drilling
28CORPORATE OVERVIEW – PROJECTS
Next stage of diamond exploration
Discovery Stage could lead to discovery
5. Pikoo (100%) Kimberlite Field
discovered by North Arrow
EKATI
DIAVIK
GAHCHO
KUE
Excellent diamond potential
5
RENARD
VICTOR
EXISTING DIAMOND MINE
29PIKOO PROJECT, SK
North Arrow (100%).
Good local infrastructure; within 10
km of SK Hwy 911– more than 200
km from nearest kimberlite field
(FALC).
10 discrete kimberlites discovered
to date. Five tested and proven
diamondiferous.
PK150 – most significant diamond
discovery; 1,232 diamonds > 0.106
mm from 531 kg.
2016 drill program discovered
PK346 and PK347 kimberlites.
Till sample results suggest more
unique unsourced KIM trains.
23 +0.85 mm stones recovered
from initial 2013 209 kg PK 150 sample
30PIKOO PROJECT, SK
PK346 PK314
&“North Pikoo
PK347 Dykes”
• Increased sample density ? ?
PK312
throughout property has
revealed independent PK150
(plus PK151 ?
source areas for at least 15 and another PK311
KIM trains; ~10 remain dyke)
unsourced. ?
? ?
• North Pikoo - high interest
? ?
chrome garnets in till not
PK393
found in known
Target
kimberlites. ?
• More diamondiferous
kimberlites are on the
property.
Priority Targets ?
?
? Known kimberlites
Ice Direction
Deeper colour = more KIMs
Bear Lake
Target
31PK 150 – MICRODIAMOND RESULTS
Compares well with two kimberlites
currently slated for development
32PIKOO PYROPE GARNET CHEMISTRY
33LAC DE GRAS DIAMOND PROJECTS
Discovery Stage
3
Loki Project
(100%)
4 LDG Project
EKATI
(JV w Dominion; ~21% NAR) DIAVIK
GAHCHO
KUE
RENARD
VICTOR
GeoDan says “A relic of a previous kimberlite encased in a later pulse. This sample has a
groundmass (gm) strongly altered to serpentine. Surrounding rock has a gm of carbonate &
monticellite. From the Anchor kimberlite (LDG) discovered in 2019, NWT. FOV 7mm, PPL & XPL” EXISTING DIAMOND MINE 34LAC DE GRAS DIAMOND PROJECTS
Loki Property
• 8,607 ha; 100% NAR
• Kimberlite 465 discovered in 2018
• Diamondiferous EG05 kimberlite
• Additional targets associated with
unsourced KIMs
• Way Forward: till sampling,
geophysics & drilling
Lac de Gras (LDG) Joint Venture
• Large project area (147,200 ha) south
of Diavik & Ekati; 4 known kimberlites.
• Dominion Diamond Mines (Operator) is
focused on discovery to extend Ekati
mine life.
• $3.5 M 2020 exploration program is
underway and will include spring and
summer drilling.
35DIAMOND DISCOVERIES: A CANADIAN LEADER
NAR: Canadian diamond sector’s most active & successful explorer over the last 7 years
• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4
kimberlite (~26 million carats)
• Two new diamondiferous kimberlite fields – Mel & Pikoo
• 465 – first Lac de Gras kimberlite discovery in over 5 years
• Anchor – first kimberlite discovery by the LDG joint venture
• 6 drill-ready (and fully permitted) diamond properties; including 5 that host known
diamondiferous kimberlite – Naujaat, Mel, Pikoo, Loki & LDG
36DIAMOND PIPELINE – SUPPLY
Future Rough Diamond Supply Spotlight
• 152 million carats produced in 2017.
• Zimnisky predicts world rough production to be 125 million carats by
2025 (includes 5 M carats from Luaxe); an 18% decline.
• Closure of Victor,
Voorspoed & Argyle plus
declining production
from other mines
(Jubilee, Diavik, Ekati).
• 2026 forecast total
production
still below 130 million
carats (includes Luaxe
at full 8 M ct/yr); no
other >1 million ct/yr
producers on horizon.
37DIAMOND PIPELINE – DEMAND
Future Rough Diamond Demand Spotlight
• U.S. retail market – almost 50% of global diamond jewelry sales; the
foundation of global end-consumer diamond jewelry demand.
• Middle-class growth in Mainland China and India still the strongest
driver of global diamond demand growth.
• De Beers’ Forevermark has stated that India may overtake China in
2020 as second largest market after the U.S.; market has grown by
approximately 50% annually over the last three years.
Long-term scenarios for natural rough diamond demand,
Bain & Company: Global Diamond Report, 2019
38TSXV: 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
Fax: +1.604.336.4813
info@northarrowminerals.com
@narminerals
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