North Arrow Minerals Inc. (NAR: TSXV) is pleased to provide an update on its wholly owned Beaverdam lithium project. The Beaverdam project is located in the Tin-Spodumene Belt of North Carolina, historically the most important lithium producing region in the world. The region hosts the past producing Kings Mountain and Bessemer City lithium mines and the respective owners of these mines, Chemetall Foote Corporation and FMC Lithium Inc., continue to maintain and operate lithium processing and research and development facilities in the area. These facilities include FMC Lithium's Center for Lithium Energy and Advanced Research (CLEAR), which is at the forefront of American development of rechargeable lithium ion batteries for electric vehicles and is located just 11 kilometers (km) from the Beaverdam project.
North Arrow's 2009 drilling program at the Beaverdam project consisted of twelve drill holes (1,235 meters (m)) and final outstanding assays from holes 09-BD-09, 09-BD-11 and 09-BD-12 are reported in this release. Lithium is contained in the mineral spodumene which occurs in over 37 pegmatite bodies that have been mapped over a 1.7 km by 1.0 km area within the project. Only nine of these mapped pegmatites were drill tested in 2009. All twelve drill holes intersected lithium bearing pegmatites, with previously reported assays including 1.54% Li2O over 4.67 m and 1.24% Li2O over 13 m (please see North Arrow news releases #09-26 and #10-01). The final three drill holes have returned similar results, with 09-BD-09 (-45 degrees) returning 3.12 m grading 0.85% Li2O, 09-BD-11 (-70 degrees) returning intervals of 3.34 m grading 0.86% Li2O and 6.00 m grading 1.10% Li2O, and 09-BD-12 (-45 degrees) returning 3.54 m grading 0.96% Li2O and 7.57 m grading 1.16% Li2O.
As part of North Arrow's ongoing Quality Assurance/Quality Control program, 24 sample pulps were selected for repeat assays using a sample preparation of sodium peroxide fusion in place of the four acid digestion that was used for all previous assays. The repeat sample analyses have consistently returned higher lithium values than the primary assay technique, with the eight samples returning >1.0% Li2O reporting, on average, an 11% increase in Li2O (range 2% to 18%). Additional testing is planned, but initial results suggest that a sodium peroxide fusion dissolves spodumene more efficiently than a four acid digestion and therefore the reported assays for the Beaverdam Project might under represent the total lithium content of these pegmatites.
North Arrow is currently making plans for a spring drilling program to evaluate the remaining untested pegmatite dikes. As part of this preparation, North Arrow is pleased to announce it has arranged a non-brokered private placement of 5,560,000 units (the "Units") at a price of $0.18 per Unit, for gross proceeds of up to $1,000,800. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company for a period of twelve months from the closing date at a price of $0.30 per share. The net proceeds of the private placement will be used to advance the Beaverdam project as well as the Company's Lac de Gras diamond project and for general working capital. Finder's fees may be payable in cash to accredited arm's length parties in respect of sales made to purchasers referred to North Arrow by finders. The private placement and any finder's fees are subject to certain conditions, including regulatory acceptance.
The Lac de Gras diamond project directly adjoins the mineral leases that host the Diavik diamond mine and is a joint venture with Dr. Chris Jennings. On February 24, 2010, the Company announced a private placement financing with Dr. Jennings, to consist of 2,780,000 units at $0.18 per unit for gross proceeds of $500,400. The terms of the financing with Dr. Jennings are identical to the terms of the second private placement financing announced today. The financing with Dr. Jennings is also subject to regulatory approval (please see North Arrow news release #10-04 dated February 24, 2010).
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. For reported results, samples were analyzed at Acme Analytical Laboratories Ltd's, Vancouver British Columbia Lab. Each sample was crushed and a 250 gram split collected. The crushed split was pulverized to 200 mesh, split and a 5 gram sample collected. The sample was subjected to a four acid digestion and analysis for 40 elements using a combination of inductively coupled plasma (ICP) emission spectrometry and ICP mass spectrometry methods. Field duplicates and laboratory inserted duplicates and standards provided optimum precision and accuracy.
North Arrow Minerals Inc.
/s/ "D. Grenville Thomas"
D. Grenville Thomas
President and CEO
For further information, please contact:
D. Grenville Thomas
President and CEO
Tel: 604-668-8355
Email: [email protected]
Gordon Clarke
Vice President, Exploration
Tel: 867-873-8483
Website: www.northarrowminerals.com
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy of this release.
