VANCOUVER, BRITISH COLUMBIA– July 10, 2014) – North Arrow Minerals Inc. (TSX VENTURE:NAR) (“North Arrow”) is pleased to announce the start of a 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 (TSX:SWY) (“Stornoway”).
The 2014 program will include the collection of approximately 1,500 tonnes from the 12.5 hectare Q1-4 kimberlite, located seven kilometres from tidewater on the Arctic Ocean and nine kilometres from Repulse Bay. The sample is being collected by surface trenching of an area of Q1-4 where there is limited (<1m) overburden cover. In 2007, Stornoway collected (from hand dug pits) a 20.3 tonne sample from this same area and recovered 6.1 carats of diamonds for a sample grade of 30 cpht. The 2014 sample will be shipped south in late August using the annual sealift from Repulse Bay 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 grade, size distribution, diamond parcel value and to establish whether or not fancy yellow diamonds persist into the larger diamond sizes.
About the Qilalugaq Diamond Project
The Qilalugaq Diamond Project comprises 7,143 hectares of land located on the Rae Isthmus, which connects the Melville Peninsula to mainland Nunavut. The property was originally staked by BHP Billiton Diamonds Inc. and subsequently optioned by Stornoway in 2006. Stornoway acquired a 100% interest in the project in 2010. A total of eight kimberlite pipes (Q1-4, A34, A42, A59, A76, A94, A97 and A152) have been identified within the project as well as a number of laterally extensive kimberlite dyke systems. All kimberlites tested to date, including seven of the kimberlite pipes, are diamondiferous and occur within a 26 x 3 km structurally favourable corridor. The Q1-4 kimberlite is the primary exploration target within the project and hosts a total Inferred Mineral Resource of 26.1 million carats from 48.8 million tonnes 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 has also been identified in the form of a target for further exploration for the Q1-4 kimberlite pipe of between 7.9 to 9.3 million carats from 14.1 to 16.6 million tonnes with an average +1 DTC total diamond content of 56.1 cpht, extending from 205m depth to 305m depth (please see North Arrow news release dated May 15, 2013 for details on this resource estimate). The reader is cautioned that mineral resources that are not mineral reserves 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 been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
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).
For more information, visit www.northarrowminerals.com.