Aug 19 2014
North Arrow Minerals Inc. is pleased to report it has completed the sample collection phase of the bulk sampling program at the Qilalugaq Diamond Project located near the hamlet of Repulse Bay (Naujaat), Nunavut.
The intent of the program is to recover a diamond parcel of approximately 500 carats for the purpose of determining an initial value estimate for the diamonds in the Q1-4 kimberlite. North Arrow is funding the bulk sampling program as part of an option agreement with Stornoway Diamond Corporation.
A total of 1,688 megabags of kimberlite have been collected from the 12.5 hectare Q1-4 kimberlite, and transported approximately nine kilometres to the company's sample laydown site in Repulse Bay. The final field sample weight is being determined but will exceed the targeted 1,500 tonnes. The sample was collected from two surface trenches which are currently undergoing final mapping and data collection prior to reclamation. The sample will be shipped south on the annual sealift scheduled to arrive in Repulse Bay on August 25th and sample processing is expected to commence in early October. The sample will be processed for the recovery of commercial sized (+0.85 mm) diamonds and the resulting diamond parcel will be used to better determine diamond content, size distribution, diamond parcel value and to establish whether or not fancy yellow diamonds persist into the larger diamond sizes.
North Arrow is currently working to earn an 80% interest in the Qilalugaq Diamond Project by completing an option work program consisting of the collection of a minimum 1,000 tonne sample from the Q1-4 kimberlite. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80% interest in the project, Stornoway has a one-time right (the "Back-in Right") to buy-back a 20% interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work program (please see North Arrow news release dated April 29th, 2013 for additional details on the option agreement with Stornoway).
Redemption Project Update
North Arrow also reports it has completed an exploration drilling program at the Redemption Diamond Project in the Northwest Territories. The property is located in the Lac de Gras region, approximately 32 km southwest of, and 47 km west of the Ekati and Diavik Diamond Mines, respectively.
A total of 799.8 m of drilling tested seven targets located in the central part of the property near the up-ice termination of the South Coppermine kimberlite indicator mineral (KIM) train. The targets included various combinations of gravity, magnetic and electromagnetic geophysical responses that were identified based on results of a detailed data compilation and new airborne and ground geophysical surveys. None of the drill holes definitively encountered a bedrock kimberlite source for the South Coppermine KIM train. Drill hole 14-RED23-08 (Az. 180 degrees; dip -60 degrees) tested a linear gravity low and encountered predominantly fresh to weakly altered granite that included a moderately to strongly fractured fault zone from 89.9 m to 99.7 m downhole. This fault zone contained intervals of dull green clay gouge which have been collected for kimberlite indicator mineral analyses.
The property hosts a number of lake based geophysical targets that could not be tested as part of the current drilling program. The Company will also continue to evaluate the comprehensive project exploration database, including information on surficial geology and an evaluation of the geophysical data sets for the identification of more subtle, and perhaps linear structural kimberlite targets.
North Arrow is exploring the Redemption property under an option agreement with Arctic Star Exploration Corp., under which the Company can earn a 55% interest by incurring $5 million in exploration expenditures prior to July 1, 2017.