canada’s most active diamond explorer - north …northarrowminerals.com/_resources/2019-11-01 nar...

TSXV:NARTSXV: NAR

Canada’s Most Active Diamond Explorer

December 2019

This presentation contains projections and forward looking information that involvevarious risks and uncertainties, including, without limitation, statements regarding thepotential extent of mineralization, resources, reserves, exploration results and plans andobjectives of North Arrow Minerals Inc. These risks and uncertainties include, but arenot restricted to, the amount of geological data available, the uncertain reliability ofdrilling results and geophysical and geological data and the interpretation thereof andthe need for adequate financing for future exploration and development efforts. Therecan be no assurance that such statements will prove to be accurate. Actual results andfuture events could differ materially from those anticipated in such statements. Theseand all subsequent written and oral forward-looking statements are based on theestimates and opinions of management on the dates they are made and are expresslyqualified in their entirety by this notice. The Company assumes no obligation to updateforward looking statements should circumstances or management's estimates oropinions change.

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CAUTIONARY STATEMENT

Forward Looking

Information

Qualified Person under

NI 43-101

Disclosure of a scientific or technical nature related to North Arrow’s projects in thispresentation has been reviewed and approved by Ken Armstrong, P.Geo. President andCEO of North Arrow and a Qualified Person under NI 43-101.

CORPORATE OVERVIEW as of November 12, 2019

Capitalization

Listing: TSX Venture – NARIssued: 110.7 MOptions: 10.3 M*

Warrants: 44.4 M (25 M @ $0.225, 17.9 M @ $0.10)

Fully diluted: 165.4 MEstimated 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%

Corporate Highlights

2*Includes stock options issued November 8, 2019

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.

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.

CORPORATE OVERVIEW - PEOPLE

Management Highlights

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• 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

2013-2019

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. LDGJV (Dominion) Kimberlite discovery in 20195. 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

NARLaydown

Q1-4 Kimberlite

NAUJAAT PROJECT

• Q1-4 Kimberlite

• Access Trail

• Access to Multiple Kimberlites

• Bulk Sample

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• Passes within 1.5 km of Q1-4 diamond deposit• Within 6 km of three other large

diamondiferous kimberlites

• Community led initiative• Funding options: Federal, Territorial,

North Arrow

• >20M carats to 200m below surface*• >12 ha; low potential strip ratio (<2:1) • Within municipality of Naujaat• ~8km from coast

- Access trail designed to handle 20 tonne truck- ‘Spur road’ will give truck access to Q1-4- Flexibility to process at site or at Laydown

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

11 km4 km

1.5 km

* CAUTION – Inferred Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability

Q1-4 DIAMOND DEPOSIT: STATUS

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

above.

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2015 – 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 conclusions from the 2015 valuation:• Parcel too small• Yellow diamonds were considered of little interest.

2015 diamond valuation was 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 are 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

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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 coarseyellow SFD scenario results in low to high price range of$60 to $220 per carat

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Total Parcel







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.

15

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

WAY FORWARD – TWO CURRENT OPTIONS

Two important questions regarding the Q1-4 diamonds 1. What is the size frequency distribution of the orangey

yellow diamonds in the larger sizes?2. What is the average diamond value per carat of the

diamonds at Q1-4?

• Collect 1500-2000 tonnes of kimberlite in summer 2020, transport by helicopter to town and process down south.

• Will answer the first question regarding the SFD of the orangey-yellow population (blue or red trajectory).

Option 1

• Collect ~10,000 tonnes, transport by Community Access Trail; process in Naujaat (complete in 2021).

• Will answer both questions.

Option 2

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Total Parcel


• Mini-excavators & free digging character;• Helicopter supported• Test at least 2 phases (A28 & A88)

WAY FORWARD – OPTION 1

1 Year Timeline: Sample collection & diamond recoveries in 2020

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~ 1,500-2,000t Sample from Q1-4Permitted & turn-key program

Sample Collection:

• Ship sample south for processing Sample Processing Options:

Sample Goal:• Confirm coarse SFD of orange – yellow diamonds

Pros:• Staged approach – confirming coarse SFD is binary• Permit and excavators in place – short ramp up• Modelled on 2014/15 bulk sample – cost certaintyCons:

• Diamond value remains unanswered

8

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

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

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

Two Year Timeline: Sample collection & diamond recoveries in 2021 19

~ 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


OPTION 2 – PROCESSING IN THE NORTH

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• 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

OPTION 2 – REQUIRES ACCESS TRAIL

Timeline: Start construction in 2020

Community led initiative:

Economic & Cultural opportunities:

Funding:

• Applications submitted for Territorial and Federal government funding

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NAR Laydown

Q1-4 Kimberlite

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

11 km4 km

1.5 km

Community Access ATV Trail Upgrade

Q1-4

A34A94

A76

ROAD ACCESS: FURTHER EVALUATION OF CLUSTER

A94• ~10 hectares• Diamondiferous• 2 angled drill

holes (@450)• Both >300m &

ended in kimberlite

All other kimberlites are under-evaluated with limited drilling – similar 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:

22

23

A34

A94

A97

A76

A42

A152A59

RENEWED EVALUATION OF OTHER KIMBERLITES

A34

A34 Cross Section - Looking West

100 m

2003-08-082003-08-07

220 m


2003-08-08

2003-08-07

220 m?

satellite image airborne magnetics airborne EM 6200 Hz

Kimberlite A34

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2003-08-25

2003-08-14

385 m

satellite image airborne magnetics airborne EM 6200 Hz

2003-08-142003-08-25

100 m

385 m

?

A94 Cross Section - Looking Northwest

Kimberlite A94


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WAY FORWARD – SUMMARY TIMELINE

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• Fabrication – ~October order to meet June delivery• Delivery/Commissioning – Earliest Summer 2021

• Currently permitted for 1,500t – Summer 2020• Processing & Results fall 2020/spring 2021• 10,000t sample – requires access road• Permitting required (drafting stage)• Earliest collection - 2021

Processing Plant: Design Engineering Study

Access Trail: Permitting & Funding – In Progress

• Construction start – Summer 2020 (funding needed)• Construction completion – Late 2020 / early 2021

Exploration Potential: Detail Review & Evaluation –In Progress

Bulk Sample: Staged Approach

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

SFD & Diamond value are the last variables.

All the other boxes are ticked.

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

MargaretLake

Arctic Star GGL Metalex Tsodilo Olivut Lithoquest NorthArrow

Pangolin StarDiamond

$1.1 $1.3 $2.3 $2.8 $3.2 $3.2 $3.6 $5.5

$9.6

$132.9

MARKET CAP (IN MILLIONS)OF CANADIAN JUNIOR DIAMOND EXPLORERS

Mill

ions

of d

olla

rs

MARKET CAP COMPARISONS (as of November 29, 2019)

27

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

North Arrow Lucapa Gem Petra MountainProvince

Lucara

$5.5 $55

$126 $130

$244

$349

MARKET CAP IN MILLIONS – NORTH ARROW VS. DIAMOND PRODUCERS

Mill

ions

of d

olla

rs

• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4 kimberlite – 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

29

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 - north …northarrowminerals.com/_resources/2019-11-01 nar...

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