Video: Slides with Ken Armstrong Voiceover, July 8, 2020: The Partnership with EHR Resources at the Naujaat Diamond Project

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Summary

The Naujaat Diamond Project.  

North Arrow’s diamond exploration programs are conducted under the direction of President and CEO, Ken Armstrong, P.Geo., a Qualified Person under NI 43-101. Mr. Armstrong has reviewed and approved all information posted on this page that is of a scientific or technical nature.

Location:  9 km northeast of Naujaat (formerly Repulse Bay), Melville Peninsula, Nunavut (see 360 degree flight from town to the Q1-4 diamond deposit)
Size: 10,742 ha of contiguous mineral leases and claims 
Ownership: 100% North Arrow (EHR Resources has option to earn 40% interest by conducting work program)
Stage: PEAdelineation drilling and sampling for diamonds to obtain diamond value
Inferred Mineral Resource*:  26.1 million carats - 48.8 million tonnes total with an average (+1 DTC) total diamond content of 53.6 cpht to a depth of 205m - Caution *Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Closest Infrastructure:  7km from tidewater; community access trail in the permitting and financing stage (see map of proposed alignment).

Technical Reports: NI 43-101 Technical Report, Mineral Resource, May 13, 2013

Related Diamond Papers and Presentations: 
Presentation on EHR Resources - July 2020
Characterization and Grading of Natural-Color Yellow Diamonds - GIA
Type Classification of Diamonds - Christopher M. Breeding and James E. Shigley
Companion Presentation to April 21, 2015 Press Release on FTIR Study of Yellow Diamonds From Q1-4 Kimberlite - Type Ib Diamonds


Highlights


Overview - The Naujaat Diamond Project

Details on the NI 43-101 Resource

The Naujaat Diamond Project is located in close proximity to the community of Naujaat, Nunavut. Since diamonds were discovered in the area in 2003, the property has undergone several phases of exploration using airborne geophysics together with property wide till sampling, drilling, and bulk sampling. The Project consists of 7 mining leases and 3 mineral claims covering 10,743 hectares.

A total of eight kimberlite pipes have been identified as well as a number of associated kimberlite dykes (see map). The Q1-4 kimberlite is the largest and most diamondiferous of the kimberlites discovered to date and has been the focus of North Arrow’s work since acquiring the Project from Stornoway Diamond Corporation in 2013. Q1-4 is located on Commissioner’s Land within the municipality of Naujaat, approximately 9 km northeast of the community.  

The May 2013 Technical Report outlines an Inferred Mineral Resource at Q1-4 estimated to be 26.1 million carats total diamond content (assumes 100% recovery) from 48.8 million tonnes total content of kimberlite with an average +1 DTC total diamond content of 53.6 carats per hundred tonnes (cpht) extending from surface to a depth of 205m.

Additional resource upside in the form of a target for further exploration ("TFFE") was estimated at between 7.9 to 9.3 million carats of diamonds (from 14.1 to 16.6 million tonnes total content of kimberlite with an average +1 DTC total diamond content of 56.1 cpht (assumes 100% recovery), extending from 205m depth to 305m depth.  

In 2014 North Arrow extracted a 1353 dry tonne sample for the A28 portion of the kimberlite recovering 11,083 diamonds greater than +1 DTC (~1 mm) weighing 384.28 carats  for an overall sample grade of 28.4 cpht (carats per hundred tonnes). The recovered diamonds include 30 diamonds larger than the 3 grainer (~0.6 carat) size and 15 diamonds larger than 1 carat. Yellow diamonds, representing a range of hues and tones, comprised approximately 9.0% by stone count and 21.5% by carat weight of the +1 DTC diamonds.  The seemingly coarser population of yellow diamonds were determined by FTIR work to represent a separate and younger population to the white diamonds.  

Cutting and polishing of some of the clearer orangey yellow rough diamonds in 2016 produced gemstones that were certified by the Gemological Institute of America as fancy vivid orangey yellow (see image above of a 0.12 carat fancy vivid orangey-yellow brilliant cut diamond).  Vivid diamonds have the highest possible colour saturation and demand a premium in the diamond market.  More diamonds will be required (approximately 2000 carats total) from the Q1-4 kimberlite to determine whether the yellow diamond population will have a positive enough impact on the overall diamond price because of their coarser population and/or their higher value per carat.      

A 2017 mini-bulk sample advanced this evaluation by providing an indication of the characteristics of the yellow diamonds in the A88 phase of the deposit. A total of 209.8 dry tonnes were collected from a single sample pit. The overall sample was divided and processed separately as three subsamples: Green Kimberlite (31 bags; subsample C1), Blue Kimberlite (A88 phase; 60 bags; sub sample C2), and Mixed Blue-Green Kimberlite (159 bags; subsample C3). A summary of the diamond recoveries from each subsample is provided in the table below along with comparable results from the 2014 bulk sample collected from the A28 phase of Q1-4 discussed above.

Sample Weight # Diamonds Carats Sample Grade Proportion Yellow Diamonds1
  (Dry tonnes) (+1 DTC)   (cpht2) By Stones By Carats
C1 27.06 344 8.46 31.2 2.6% 3.1%
C2 51.73 467 12.99 25.1 9.9% 9.9%
C3 131.04 1,180 42.80 32.6 11.6% 28.2%
C1+C2+C33 209.84 1,991 64.25 30.6 10.7% 21.2%
A2820144 1,353.3 11,083 384.28 28.4 9.0% 21.5%

includes very pale to pale to intense/dark yellow + green yellow diamonds; same colour breakdown as undertaken for sample A282014.
carats per hundred tonnes
3 total 2017 Pit C sample determined by arithmetic
As reported in North Arrow news release dated May 5, 2015.

On June 2, 2020 it was announced that North Arrow had entered into an option agreement with EHR Resources Ltd. (ASX–EHX) of Australia to fund further evaluation of the Q1-4 diamond deposit scheduled to commence in summer 2021. Under the terms of the agreement EHR can earn a 40% interest in the Naujaat Project by investing $5.6M to collect a 1,500 to 2,000 tonne 'preliminary bulk sample' during the 2021 summer field season.  The purpose of the preliminary bulk sample is to recover enough diamonds to confirm whether or not the orangey yellow diamonds have a coarse population.  As part of the agreement, EHR posted a $300,000 non-refundable advance that is being used by North Arrow, as operator, to preposition fuel and other supplies by sealift in 2020. 

EHR may elect, after completion of the 2021 program, to earn an additional 20% in the Q1-4 diamond deposit by funding collection of an additional 10,000 tonne bulk sample required to accurately determine the overall diamond value of the stones at Q1-4. 

In support of this proposed sampling program, the Hamlet of Naujaat has been working with Ecologic Consultants and On Site Engineering actively pursuing the financing and permitting required to commence construction on this access road.  A positive NIRB screening has been received to upgrade an existing ATV trail that heads northeast from the community.  The proposed access trail will pass approximately 1.5 km southeast of Q1-4 at kilometre 11 of its proposed 15 kilometre length.

Use of the access trail would reduce the cost of a bulk sample, reduce local air traffic disturbance, and increase opportunities for local businesses and employment.  North Arrow envisages that for every dollar put into building the road, North Arrow would be spending approximately $3 to $4 in the community on wages, supplies, hamlet services and road use fees during the proposed bulk sampling. In addition to the economic opportunities the road would bring to the Hamlet of Naujaat as a direct result of the bulk sample program, a number of beneficial social and economic development outcomes have been envisaged, including increased tourism and education opportunities, access to aggregate and carving stone sources as well as improved and safer access to the land for traditional land use activities. The access trail will lie entirely within the community’s municipal boundaries.? 

In anticipation of the road-supported 10,000 tonne bulk sampling program, North Arrow has engaged Imilingo Mineral Processing of Pretoria, South Africa, TOMRA, and Microlithics Laboratories of Thunder Bay, Ontario an engineering design and costing study of a small-scale mobile diamond recovery plant to be situated either at our laydown site near town or out at the deposit. The plant is being designed to produce a hand-sortable concentrate focussed on the recovery of +3 mm diamonds and larger.  A significant amount of the cost associated with processing past Q1-4 kimberlite samples has been related to ensuring and documenting the recovery of smaller diamonds, but it is the larger stones' qualities that will have the biggest impact on the overall diamond price, and will ultimately dictate whether the deposit could be economically viable.  For more information on the development of a small-scale mobile diamond recovery plant please see the NAR Press Release dated May 13, 2019.

North Arrow is also working towards an update to the 2013 NI 43-101 Resource Statement, completing a total of 3,469 m of drilling as part of 2017 summer program. Eleven drill holes were completed confirming the overall size of the Q1-4 body and better defining the size and shape of the kimberlite at depth.  Drilling between 205 and 305 m below surface (-135 to -235 masl) confirmed (or possibly expanded) previous interpretations of overall pipe geometry with the potential to add significant mineral resources below 205 m (-135 meters above sea level "masl").  The estimated surface area of the kimberlite at 305 m depth below surface (-235 masl) is at least 5 ha and the body remains completely open to depth with the deepest drill hole terminating in kimberlite at a depth of 376 m (-311 masl).  Certain areas of the pipe require additional drilling to increase the confidence level of the Target for Further Exploration and bring it into the inferred category.  The 2017 drilling yielded 2,440 m of kimberlite core which was used for petrography, indicator and microdiamond analysis and contributed to the evolving geological model.  An update to the NI 43-101 resource statement will be made when that drilling has been completed and the results have been incorporated into the new model.

The 2017 drill program included the collection 3,750 kg of material composited from drill core in the field based on observed lithological units and submitted for processing using a combined dense media separation / caustic fusion process intended to recover diamonds greater than 0.425mm. Results were released on March 28, 2018.  Additional micro-diamond results for the different phases were announced on January 15th, 2019.

The reader is cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability. In addition, the potential quantity and grade of any target for further exploration is conceptual in nature, there has not been sufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.



 

 

       

 

 
 
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