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North Arrow Minerals is an emerging name in Canadian Diamond Exploration. The experienced team has seen a void in the diamond exploration sector in Canada with the general market downturn and has taken the opportunity to build a portfolio of projects from greenfields to the advanced stage. Meanwhile the market fundamentals for diamonds are predicted to be excellent for the foreseeable future and more discovery is needed.
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TSX-V: NAR
A Rare Opportunity in
Canadian Diamond
Exploration
June 2013
This presentation contains projections and forward looking information that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization and 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 the need for adequate financing for future exploration and development efforts. There 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.
Cautionary Statement
Corporate Overview
Capitalization (June 2013)
Listing: TSX Venture -
NAR
Issued: 28.4 M Apr/13 20M
shares issued at $0.15
Options: 2.4 MIncl. 2.2M at $0.27
Warrants: 0.5 M $0.25
Fully diluted: 31.3 M
Main Shareholders (June 2013)
Management/Directors ~22.3%
Zebra Holdings & Investments ~19.9%controlled by a trust settled by the late Adolf H. Lundin
Corporate Highlights:
Corporate Overview
D. Grenville Thomas (Chairman) History of success in exploration with multiple junior mining companies. Founder and past Chairman of Aber Resources, discoverer of the Diavik Diamond Mine (now Dominion Diamond Corporation). 2009 Canadian Mining Hall of Fame inductee
Ken Armstrong (President & CEO) President and CEO of Strongbow Exploration Inc. Past diamond exploration experience with Diavik Diamond Mines Inc., Aber Resources, DeBeers, Navigator Exploration, and Stornoway Diamond Corporation
Blair Murdoch (Director) More than thirty years experience in senior management of private and public companies
Christopher Jennings (Director) Extensive experience in diamond, gold and base metal exploration and development throughout the world. Dr. Jennings was a Founder of SouthernEra Diamonds Inc., served as a consultant to Aber Resources and has held positions with numerous companies including International Corona Corp., BP Minerals (Canada) and Falconbridge Ltd
Eira M. Thomas (Advisor) Extensive diamond exploration and development experience in Canada and Africa. Has served as an officer and/or director of Aber Resources and Stornoway Diamond Corporation. Currently CEO of Kaminak Gold Corporation and a director of Suncor and Lucara Diamond Corp
Management Highlights:
The Opportunity
The creation of a Canadian based, diamond exploration company to test advanced, drill ready targets developed over 5+ years of exploration at a cost in excess of $40 million dollars
Experienced team, responsible for the discovery of over 200 kimberlites in Canada, including Diavik
Very little competition for diamond exploration in Canada or globally.
Diamond market fundamentals are robust
Canada remains underexplored as well as being a jurisdiction with low political risk
Concept
Reorganize North Arrow share structure (Feb/13) – currently 28.4 million shares outstanding
Assemble priority targets/properties through staking and acquisition (Acquired options on Pikoo, Timiskaming and Qilalugaq properties)
Complete private placement financing ($3M raised April 2013)
Drill program planned for Spring/Summer 2013 (Pikoo drilling June 2013; initial Timiskaming drilling completed spring 2013)
Continued identification and acquisition of quality diamond prospects (acquisitions pending)
Diamond Exploration Assets
Kimberlites for mini-bulk sampling (Qilalugaq)
Drill ready kimberlite targets (Pikoo, Timiskaming)
Lac de Gras diamond project under option to Dominion Diamond Corporation
Unsourced indicator mineral trains in new areas (acquisitions underway)
Unexplained geophysical targets
Targets from historical review
Extensive regional databases
Discussions underway to acquire drill ready targets from third parties
Principal Diamond ProjectsVictoriaIsland
Lac de Gras (NT)• >300,000 acres• Near Diavik & Ekati mines• 1st $5M funded by Dominion Diamonds• $1.3M 2013 program in progress
Doris
Pikoo (SK)• Excellent KIM chemistry• Drill ready – June 2013• Potential new kimberlite field• Under option from Stornoway
Qilalugaq (NU)• Large tonnage resource• Potential for high value stones• Bulk sample required• Under option from Stornoway
Timiskaming (ON/QC)• Six kimberlites• Additional targets• Drilling spring 2013• 80/20 JV with Stornoway
Pikoo Project – east central SK
Under option from Stornoway Can earn 80% by completing 2,000 m drill program SWY retains back-in right (20% to 40%) Located b/w La Ronge SK & Flin Flon, MB Highway and power line 30 km away Local roads within 10 km of property Regional till sampling started in 2006 -
multiple mineral trains on 33,000ha property with G9 + G10 garnets
Kimberlite discovered in first drill hole of the ongoing 2013 drilling program Represents a new kimberlite locality over 200km from the nearest kimberlite field (FALC)
Pikoo Project - SK
2 distinct target areas
10 km10 km
Kimberlite bouldersfound in 2012
North Pikoo
South Pikoo
Excellent Chemistry
Slave Pikoo
North Pikoo Till Sampling
2006 – 2011 samples 2012 samples kimberlite float
Ice Direction
Ice Direction
2006 – 2012 barren samples 2012 samples
• 2 separate NE-SW trending trains with good pyrope chemistry suggestive of at least 2 point sources with high diamond potential
• Kimberlite float recovered from western train
• Coincident but weak mag and EM targets
• Drilling in 2013 to focus at head of trains
North Pikoo Till Sampling
Very thin till veneer covering typical Canadian shield environment
South Pikoo KIMs suggest different source from North Pikoo
Barren zone of more than 10 km separates the two trains
Several priority geophysical and/or topographic targets associated with high indicator mineral counts selected for drill testing beginning in June 2013
Ice Direction
South Pikoo Till Sampling
Located within the Lac de Gras kimberlite field, on trend from the Ekati and Diavik diamond mines
Option Agreement with Dominion Diamond Corp (formerly Harry Winston; 40% owner of Diavik; 80% owner of Ekati)
Creation of a JV property covering ~307,000 acres (>1,200 km2)
Dominion to spend $5M over 5 years to explore the JV property
Vesting will create a JV with DDC (55%) and North Arrow (45%)
Numerous untested airborne geophysical targets with kimberlite type signatures
$1.3M overburden drilling program underway since March 2013
Lac de Gras Diamond Project
10 km
$$$$$$$$
$$$$$$$$
Kimberlite
Trend Lines
Winter Road
LDG Property
Diamond Mine$$$$$$$$
Ekati
Diavik
Can earn 80% from Stornoway by completing mini-bulk sample
SWY retains one time back-in right to 40% by paying 3X exploration costs
Primary target is the Q1-4 Kimberlite
Q1-4 Kimberlite (Repulse Bay, NU)
• 7km from tidewater; 9km from town• Largest diamondiferous kimberlite in
eastern Arctic (12.5ha)• May 2013 inferred resource estimate
of 26.4 million carats• Modeled to 305m; open at depth• Yellow diamonds could
significantly impact value• Needs large tonnage mini-bulk
sample• Estimate $3 to $3.5 million to
collect/value 500 carats
Oblique view
Qilalugaq Project - NU
Qilalugaq
Repulse Bay
Q1-4 Kimberlite
May 2013 resource estimate1
• Inferred Resource = 48.8 Mt, 26.1 Mcts, total diamond content2 53.6 cpht• TFFE3 = 14.1 to 16.6 Mt, 7.9 to 9.3 Mcts, total diamond content2 56.1 cpht• Size/grade compares favourably to other current
advanced/development projects 1Mineral resources are not mineral reserves and do not have demonstrated economic viability 2Defined as 100% recovery of +1 to +23 DTC diamonds 3Target for further exploration - The potential quantity and grade of the TFFE referred to above is conceptual in nature and it is uncertain whether further exploration will result in the target being delineated as a mineral resource
• 12.5 ha surface area
Qilalugaq Project - Resource
Jericho Victor Karowe Ghaghoo Qilalugaq Bunder Renard Gahcho Kue Ekati Grib Diavik0
20
40
60
80
100
120
140
160
Mill
ions
of
cara
ts
No Longer Producing
Resource Comparison of Diamond Mines at Startup and Current Projects with Resources (includes measured, indicated and inferred)
Producing Mine Projects with Resources
*Ekati millions of carats numbers are based on the initial reserve. Information on the initial resource was not available.
Q1-4’s 26.1 million carat resource
Qilalugaq – Resource Comparison
Ghaghoo Karowe Victor Qilalugaq Renard Bunder Jericho Grib Ekati Gahcho Kue Diavik0
0.5
1
1.5
2
2.5
3
3.5
4
Car
ats
per
tonn
e
No Longer Producing
Grade Comparison of Producing Diamond Mines at Startup and Current Projects in Development or Under Assessment
Producing Mine Projects with Resources
Q1-4 grade: 0.54 carats per tonne
Qilalugaq – Resource Comparison
Qilalugaq Project - Diamonds
Most important unknown for Qilalugaq is diamond value
Q1-4 diamond parcel includes a population of yellow diamonds
Described as ‘fully saturated’ yellow stones
Need a larger diamond parcel (+500cts) for valuation and to determine if yellows extend into larger stone sizes
Presence of yellow diamonds could have a significant positive impact on diamond valuations for Q1-4
Qilalugaq Project
The Ellendale Mine – Australia
Kimberley Diamonds (the producer) has an off-take agreement with Laurelton Diamonds (Tiffany’s) to sell the yellow stones so information is public
Produces ~50% of the world’s yellow fancies
Yellow fancies make up ~80% of Ellendale’s revenue
Yellows comprise ~9-16% of total run of mine production (Q1 2013 – 13%)
Q1 2013 US$/carat for yellows sold to Tiffany: $5,486
Q1 2013 US$/carat for all diamonds sold: $880
Recovered grades achieved at Ellendale are quite low at 4.12 carats per hundred tonnes (as of April 2013)
Approximately 4 million carats remain in the indicated and inferred resources
A look at the biggest single producer of yellow
diamonds in the world
wt.% Value% wt.% Value%Case1 AP$/ct Case 2 AP$/Ct
$350 $560
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
95%
38%
90%
22%
5%
62%
10%
78%
Qilalugaq Project – Yellow Diamonds
Case Study: Potential Impact of Fancy Yellows on Average Diamond Price
% o
f Run
of M
ine
Dia
mon
d P
opul
atio
n
Yellow Goods Commercial Goods
Each case assumes a world average price of commercial goods (~US$139/carat based on rough import average price into Antwerp in 2012) and an average price for yellow diamonds of $4350/ct (price achieved for yellows from Ellendale in Q1 2012)
WAY FORWARD: ~1,000 to 1,500 tonne mini-bulk sample from surface pits planned for summer 2014 in a 6 week program (land use permit pending)
COST: $3.4 million
GOAL: to recover a +500 carat diamond parcel to determine grade, size distribution and the potential for fancy yellows in commercial sizes. Also, to get a preliminary sense of yellow’s impact on the overall diamond value
A28
Qilalugaq Project - NU
Q1-4 yellow stone continuum
Joint venture with Stornoway Vested 80% interest by drill testing 4 targets in May 2013 SWY back-in right currently pending (from 20% to 40%) Agreement includes 6 known kimberlites 2013 drilling failed to hit kimberlite; KIM train remains unexplained Expanded geophysical coverage has identified new targets at head
of indicator mineral trains Road access means
inexpensive exploration
Timiskaming Project - ON
Unsourced Indicator Mineral Trains
Years of public and proprietary till, glaciofluvial and fluvial sampling data are available throughout Canada
Target below located in a promising but glacially challenged area
Pyrope bearing mineral train cut off in up-ice direction Priority lowered due to other projects/commitments Restricted ~1km2 area of interest No detailed geophysics and no
prospecting Target acquisition underway Similar targets being evaluated
Ice
Direction
10 km
Way Forward – 2013
Project Location Commodity Interest CommentLac de Gras NWT Diamonds 45% Under option to Dominion
$1.3M exploration programPikoo Saskatchewan Diamonds 80% (60%) Summer Geophysics/drillingTimiskaming Ontario Diamonds 80% (60%) Spring drillingQilalugaq Nunavut Diamonds 80% (60%) Bulk sample program planningContwoyto Nunavut Gold 100% (40%) Under option to Elgin Hope Bay Nunavut Gold 100% (40%) Under option to SennenAnialik Nunavut Gold, base metals 100% Seeking JV partnerBamako Nunavut Gold 100% Seeking JV partnerHay Duck NWT Nickel, Gold 100% Seeking JV partnerPhoenix/Torp NWT/Nunavut Lithium 100% Seeking JV partner
Focus on evaluating current diamond properties and acquiring new compelling diamond opportunities.
Three projects under option with exploration funded by third parties: overburden drilling underway at Lac de Gras (Dominion); exploration programs pending at Contwoyto (Elgin) and Hope Bay (Sennen).
Pursuing additional partners for remaining non-core properties.
Gren Thomas Ken ArmstrongChairmanPresident & CEO
Corporate OfficeExploration Office860 - 625 Howe Street 1103-475 Howe StreetVancouver, BCVancouver, BCCanada V6C 2T6Canada V6C 2B3
Tel: +1.604.668.8355 Tel:+1.604.668.8354Fax: +1.604.689.5041 Fax: +1.604.681.5528
TSXV: NAR www.northarrowminerals.com