Resource World Magazine

70 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 8 MINING C anada's diamond potential remained largely unrecognized until Dia Met Minerals announced the discovery of its Point Lake kimberlite in the Northwest Territories back in 1991. Seven years later the Ekati diamond mine, Canada's first diamond producer, achieved commercial production followed by Diavik in 2003. The fact that these mines are still operating today speaks to the longevity of diamondiferous kimberlites – which tend to occur in clusters – and that's one reason why they remain attractive, high-value exploration targets for companies like North Arrow Minerals Inc. [NAR-TSXV; NHAWF-OTC]. As production winds down from producers in the NWT (Ekati/ Diavik) and Ontario (Victor Mine), Canada will need new sources of production to maintain its status as a major producer of high- quality, conflict-free diamonds. However, when you look at the lag time from discovery to commercial production, Canada might find itself in production purgatory for several years before recov- ering its previous commercial status. Supported by some well-heeled investors, including New York-based Electrum Strategic Opportunities Fund and mining entrepreneur, Ross Beaty (who contributed $2 million each to a $5 million private placement last May), North Arrow has perhaps the largest active exploration portfolio in the country's diamond sector. In fact, the company is evaluating a geographically-dis- persed exploration portfolio that includes projects in the NWT, Nunavut, Saskatchewan and Ontario. At present, North Arrow is evaluating six permitted drill-ready projects, at least four of which will likely be drilled in 2018, says the company's President and CEO, Kenneth A. Armstrong. The com- pany recently completed geophysical surveys on its Loki Project and LDG joint venture, both of which are located in the NWT. LDG is a joint venture between Dominion Diamond Corp., recently acquired by The Washington Companies, and North Arrow which elected not to participate in a $2.8 million exploration pro- gram this year and will see its interest diluted down. Situated within the Lac de Gras district, North Arrow's Loki Project is right in the core of Canada's diamond-producing heartland not far from the Ekati and Diavik diamond mines. The project area contains the EG-05 kimberlite – discovered by Kennecott Exploration Canada in the 1990s – located within the southern Lac de Gras region. At Loki this year, North Arrow completed a 302 line-km heli- copter-borne magnetic/electromagnetic survey as well as four ground magnetic surveys to better define targets that will be drill tested in March 2018 including the diamondiferous EG-05 kimber- lite. Loki East hosts a number of prospective exploration targets as well as five known kimberlites which remain to be fully evaluated. In addition, four ground magnetic surveys were completed over six priority targets in the Loki South area. (Most kimberlites have a distinctive aeromagnetic signature and produce a roughly circular anomaly. In the NWT, they are often under lakes). The targets covered by the ground surveys are located at or near the interpreted termination of a kimberlite indicator min- eral (KIM) train. Compositions of some indicator minerals such as magnesium-ilmenite, chromite, garnet and diopside are generally related to the presence of diamonds in kimberlites; so the grid- based sampling of these mineral trains often leads back to their source rocks which are usually kimberlites. A delineation drilling and mini bulk sampling program was completed on the company's Naujaat diamond project in Nunavut this past summer. The program focused on the 12.5-hectare Q1-4 kimberlite which the company says is "one of the largest unde- veloped diamond resources in Canada." In fact, it contains a significant population of extremely rare, potentially high value, fancy vivid orangey yellow diamonds as certified by at least two gemological entities. Exploration results from the program will be forthcoming dur- ing the remainder of the year and early next year. According to Armstrong, "the results will be used as we plan for further drill- ing next spring and the collection of a larger bulk sample next summer in advance of an economic assessment of this large dia- mond deposit." Detailed prospecting of the well-defined KIM trains at the company's Mel property in Nunavut led to the discovery of kim- berlite and diamonds – the second discovery by North Arrow of a diamondiferous kimberlite field in Canada. "Delineation and explo- ration drilling of the ML-8 discovery and other identified targets is now planned for 2018 and will benefit from sharing logistics and infrastructure with North Arrow's ongoing evaluation of the Q1-4 kimberlite at the Naujaat Diamond Project," Armstrong says. North Arrow also completed a till sampling program at its Pikoo diamond project in Saskatchewan which was staked in 2011 based on results of regional exploration programs that were designed to test the diamond potential of the Sask craton North Arrow evaluating geographically diverse exploration portfolio by David Duval GIA certified 0.12 carat fancy vivid orangey yellow round brilliant diamond from the Naujaat Project. Photo courtesy North Arrow Minerals Inc.

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