North Arrow Minerals Inc. (TSXV-NAR) is pleased to announce that it has started mobilizing for an upcoming exploration drill program at its Oro gold property located within the prolific Hope Bay greenstone gold belt in Nunavut. Up to 1500 metres of diamond drilling will be completed in the exploration program being managed by North Arrow and funded by Sennen Resources Ltd ("Sennen") (TSX-V: SN). Drilling is expected to commence by the end of July.
The Oro property consists of five leases covering an area of over 10,000 acres adjoining the Doris North mine property being brought into production by Hope Bay Mining Ltd (a wholly owned subsidiary of Newmont Mining Corporation). Hope Bay Mining's project includes the Doris, Boston and Madrid deposits that contain an estimated 9 million ounces of gold and collectively represent one of the largest undeveloped gold deposits in Canada. The deposits are located within an 80 km long Archean greenstone belt, the northern 10 km of which is covered by North Arrow's mining leases. Hope Bay Mining is continuing aggressive exploration in parallel with mine development, which confirms their expectations of making further discoveries.
The Oro property hosts numerous gold showings and potentially gold bearing structures which have been evaluated by only minimal exploration. Drilling will be focused on the Ida Point prospect at the northern end of the property, specifically at the 600 m long Elu shear zone. Surface trenching over a 400 m strike length at Elu has returned significant gold values including 11.6 grams per tonne gold (g/t Au) over 1.9 m and 24.7 g/t Au over 5 m. A four hole diamond drill program in 1998 returned downhole intersections of 14.3 g/t Au over 2 m and 5.5 g/t Au over 6 m. Several high grade native silver deposits, mined in the 1970's, are also located on the property and the potential exists to find larger hidden silver deposits associated with structures since identified across the property.
Sennen Resources Ltd is funding the program as part of their option agreement to earn a 60% interest in the project. As announced February 2nd, 2011, the Oro project was optioned to Chelsea Minerals Corporation ("Chelsea"). On May 10th 2011 Sennen Resources Ltd announced the completion of a plan of arrangement acquiring all issued and outstanding shares and assets of Chelsea, including the Oro option agreement. The option agreement allows Sennen to earn up to a 60% interest in the property by making an initial cash payment of $50,000 and spending $5 million over a five year period. A minimum expenditure of $500,000 is required in the first year. Sennen has over $15 million in its treasury and can fund the exploration obligations for the Hope Bay project without the need to raise any further capital.
North Arrow CEO Gren Thomas commented, "We are pleased to increase the exploration efforts at the Oro project. The location and under-explored status of the property offers great potential for discovery and the partnership with Sennen allows us to move forward to evaluate that potential."
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.
About North Arrow Minerals
North Arrow Minerals is a well-established junior exploration company with a diversified portfolio of gold, base metal and diamond projects. Most of the North Arrow's 2011 field programs on Canadian properties are funded through option or joint venture agreements, allowing the Company to focus its resources on the acquisition and development of advanced exploration properties in South America. North Arrow has signed a letter of intent to acquire the Agua Grade gold-copper project in Chile and is currently conducting a due diligence program.
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
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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.
