North Arrow Minerals Inc. (TSXV-NAR) is pleased to announce plans for an upcoming exploration drill program at the Hammer Property located within the Coronation Gulf/North Slave Diamond District of Nunavut. The Hammer Property is a joint venture between North Arrow (25% participating) and Stornoway Diamond Corporation (TSX-SWY, 75% and operator) and hosts the Hammer kimberlite discovered by prospecting in July 2009 (North Arrow News Release #9-13). The Hammer kimberlite has not yet been drill tested, and the upcoming $1.3 million dollar drill program will be designed to delineate its size and diamond content for the first time.
The Hammer Property is located approximately 500km north of Yellowknife, Northwest Territories and was acquired by the joint venture in October 2008. The Hammer kimberlite was first identified as a topographic low anomaly at the head of a kimberlitic indicator mineral train with strong diamond inclusion chemistry. In 2009 weathered kimberlite breccia bedrock associated with the topographic low was confirmed within hand dug pits. In addition there are numerous scattered kimberlite occurrences of surface float and frost heaved kimberlite fragments, and a single micro-diamond was recovered from a 6 kilogram hand sample. While the true nature and size of the body is not yet known, a ground geophysical survey completed in the fall of 2010 has confirmed a significant magnetic response associated with the topographic feature, which measures 225m long by between 15 and 100m wide and has a surface expression of approximately one hectare. The goal of the program will be to delineate the true size and shape of the body, test for multiple phases of kimberlite, and collect sufficient samples to permit an estimate of diamond content. All required permits are either in place, or expected shortly, and mobilization is planned for the first week of June.
Seagull Property Acquisition
North Arrow announces that it has entered into an option agreement with Panarc Resources Ltd., whereby the Company may earn a 100% interest in certain mineral claims, known as the "Seagull" property, which cover 3925.4 acres approximately 156 km west of Watson Lake, Yukon. Under the terms of this agreement, which is subject to regulatory approval, the Company will make an initial cash payment of $15,000 to Panarc and will issue 100,000 common shares to Panarc. In addition, the Company must incur aggregate exploration expenditures of $300,000 within a three-year period. Panarc will retain a royalty equal to 2.0% of net smelter returns, of which the Company may purchase one percentage point (1.0%) for $1,000,000 CAD such that the royalty would be reduced to 1.0%.
About North Arrow Minerals
North Arrow Minerals is a well-established junior exploration company which has been focused in northern Canada. The Company has a diversified portfolio of gold, diamond and base metal prospects in the Arctic, many of which will be advanced through exploration programs during the 2011 field season. North Arrow intends to issue a series of news releases over the next several weeks to update investors of these plans. The Company has also been aggressively looking to acquire new projects in other mining friendly jurisdictions.
Recently appointed President and COO, Brian McEwen comments, "North Arrow is in a good position moving forward. In addition to this announcement on The Hammer Project, we are planning active exploration programs for many of our northern Canadian properties. Most of these field programs will be funded and operated through option or joint venture arrangements thereby allowing the Company to focus its resources on new opportunities abroad. The Company is currently evaluating several acquisition opportunities and we anticipate we will be able to disclose additional information on these activities in the near future."
North Arrow Minerals Inc. trades on the TSX Venture Exchange ("TSXV") under the symbol NAR.
North Arrow's exploration programs are conducted under the supervision of Gordon Clarke, P.Geol (NT&NU), Vice President, Exploration for North Arrow and a qualified person under NI 43-101.
North Arrow Minerals Inc.
/s/ "Brian McEwen"
Brian McEwen
President and COO
For further information, please contact:
Julie Hajduk
Corporate Communications
Tel: 604-681-5543/ Cell : 778-240-7077
Email: [email protected]
Website: www.northarrowminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements The information in this press release includes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NAR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NAR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NAR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.
