Canadas Most Active Diamond Explorer PDAC 2020 CAUTIONARY - - PowerPoint PPT Presentation

TSXV:NAR TSXV: NAR

Canada’s Most Active Diamond Explorer

PDAC 2020

This presentation contains projections and forward-looking information that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization, resources, reserves, exploration results and plans and

• bjectives of North Arrow Minerals Inc. These risks and uncertainties include, but are

not restricted to, the amount of geological data available, the uncertain reliability of drilling results and geophysical and geological data and the interpretation thereof and the need for adequate financing for future exploration and development efforts. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward looking statements should circumstances or management's estimates or

• pinions change.

1

CAUTIONARY STATEMENT

Forward Looking Information Qualified Person under NI 43-101

Disclosure of a scientific or technical nature related to North Arrow’s projects in this presentation has been reviewed and approved by Ken Armstrong, P.Geo. President and CEO of North Arrow and a Qualified Person under NI 43-101.

CORPORATE OVERVIEW

as of November 12, 2019

• Capitalization

Listing: TSX Venture – NAR Issued: 110.7 M Options: 10.3 M* Warrants: 44.4 M (25 M @ $0.225, 17.9 M @ $0.10) Fully diluted: 165.4 M Estimated Working Capital: ~$1.0 M

• Main Shareholders

Management/Directors/Advisors ~24.4% Zebra Holdings and Investments ~10.3% Electrum Strategic Opportunities Fund ~10.3% Ross Beaty ~8.8% Corporate Highlights 2 *Includes stock options issued November 8, 2019

• D. Grenville Thomas (Chairman) Founder of Aber (now Dominion Diamond), discoverer
• f the Diavik Diamond Mine; Canadian Mining Hall of Fame inductee.

Ken Armstrong P.Geo. (ON) (President, CEO, Director and Qualified Person under NI 43-101) Diamond exploration and evaluation experience with Diavik, Aber, De Beers, Navigator, and Stornoway. Christopher Jennings (Director) Founder of SouthernEra, consultant to Aber; formerly with International Corona Corp., BP Minerals (Canada) and Falconbridge. Blair Murdoch (Director) More than thirty years' experience in senior management of private and public companies. Eira M. Thomas (Advisor) Extensive diamond exploration and development experience in Canada and Africa; Co-founder, CEO & director of Lucara; former officer and director

• f Aber; former CEO of Kaminak Gold Corporation (acquired by Goldcorp in 2016 for

$520 million); currently director of Suncor. Robin Hopkins (Advisor) 25+ years diamond exploration, evaluation and development experience with Stornoway, Navigator, and Aber. Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.

CORPORATE OVERVIEW - PEOPLE

Management Highlights 3

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

Grassroots

7. Timiskaming (JV w SWY)

7

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

2. Mel (100%) Kimberlite Field discovery 2017 3. Loki (100%) Kimberlite 465 discovered 2018;

1st Lac de Gras discovery in > 5 years

4. LDGJV (Dominion) Kimberlite discovery in 2019 5. Pikoo (100%) Kimberlite Field discovery 2013 6. Luxx (100%) Permitted & drill ready

Advanced Stage

1. Naujaat (100%) Significant diamond inventory;

potential value upside: fancy orange-yellow diamonds

Assessing a known kimberlite or diamond deposit

8

Brownfields Gold

1

8. Hope Bay (100%)

Next stage of diamond exploration could lead to discovery

2 5 6

Target development Within 3km of TMAC’s Doris Mine; similar geology and structures

4

NAUJAAT PROJECT – TICKS ALL THE BOXES

 Jurisdiction  Near tide water  Large tonnage  Low strip ratio  Significant diamond inventory*  Blue sky potential

* CAUTION – Inferred Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability

Unique diamond value proposition

5

<3:1 vs >10:1 for NWT diamond mines ~48 Mt down to 205m below surface ~26M contained carats 15 additional kimberlites for evaluation Freight costs 50% of NWT diamond mines Clear permitting path in Nunavut Q1-4 Kimberlite NAR Laydown Area

Q1-4 DIAMOND DEPOSIT: STATUS

Q1-4 “run of mine” from 2014 sample; +9DTC and above.

6 2015 – Commenced two phase approach to show value upside of Q1-4 diamonds: 1) Cutting/polishing of yellow diamonds 2) Analysis of diamond size frequency distributions (SFD) Primary WWW Conclusions from the 2015 Valuation:

• Parcel too small
• Yellow diamonds were considered of little interest.

2015 WWW Diamond Valuation based on 384 carats recovered from ~1,350 t $92 per carat modelled “possible high” | $43 per carat modelled “possible low”

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Cut & Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade

7

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Cut & Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations 8

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes

9

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes
• 4. 2015 possible low to high model prices applied to the coarse

yellow SFD scenario results in low to high price range of $60 to $220 per carat 10

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes
• 4. 2015 possible low to high model prices applied to the coarse

yellow SFD scenario results in low to high price range of $60 to $220 per carat

• 5. At this price the project is very attractive

11 Potential value upside is based on coarse SFD alone; does not factor in that yellow diamonds are fancy coloured, worth a premium price, and of interest to luxury jewelry trade

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

Q1-4 - LARGE TONNAGE, EASY ACCESS

~700m ~200m

Q1-4 looking southwest: 12.5 ha kimberlite 12

• Easy surface

access to A28, A61 & A88 phases

• Current Q1-4

resource ~48Mt to 205m depth

• Modelling

suggests extending the resource to 300m depth could result in strip ratio < 3:1

• 2017 drilling

extended Q1-4 below 300m

Q1-4 DELINEATION DRILLING

• Several deep drill holes remained in kimberlite

>100m beyond the current model and well below 300m from surface. 13 B

Looking North

Current TFFE

0 m 100 m 300 m 200 m

B A A’ B’

2017 drill holes on 2013 resource model

Looking West

A A’

0 m 100 m 300 m 200 m

B’

Current TFFE

• Mini-excavators & free digging character
• Helicopter supported
• Test at least 2 phases (A28 & A88)

WAY FORWARD – OPTION 1: SFD QUESTION FIRST

1 Year Timeline: Sample collection & diamond recoveries in 2020

14 ~ 1,500-2,000t Sample from Q1-4 Permitted & turn-key program Sample Collection:

• Ship sample south for processing

Sample Processing Options: Sample Goal:

• Confirm coarse SFD of orangey-yellow diamonds

Pros:

• Staged approach – confirming coarse SFD is binary
• Permit and excavators in place – short ramp up
• Modelled on 2014/15 bulk sample – cost certainty

Cons:

• Diamond value remains unanswered

8

• Same as 2014 & 2017
• Small excavator
• Bags delivered by helicopter to

laydown area in Naujaat

• Transported by sealift to Montreal
• Trucked to laboratory for diamond

recovery

OPTION 1: 1,500-2,000 TONNE SAMPLE IN 2020

15

• Take advantage of free digging character & community

access trail completed in 2020 & 2021 - reduced cost & more local investment

• Test at least 3 phases (A28, A88, & A61)

OPTION 2 – SFD AND VALUE QUESTIONS

Two Year Timeline: Sample collection & diamond recoveries in 2021

16 ~ 10,000t bulk sample from Q1-4 Sample Collection:

• Access could allow for on site processing:

i) simultaneous collection/processing ii) staged diamond recovery iii) faster results

• Innovative flow sheet & TOMRA optical sorting

Sample Processing Options: Bulk Sample funding:

• Non-dilutive, project level funding options

Sample Goal:

• Confirm coarse SFD & value

upside of orange-yellow diamonds

OPTION 2 – PROCESSING IN THE NORTH

17

• Economic diversification -

i) Access to aggregate ii) Access to carving stone iii) Tourism (outfitters; education) iv) Evaluation of Q1-4

• Safer access to the land for traditional land

use activities and education

• Hamlet is project proponent
• Entirely within municipal boundary
• Permitting & funding are underway

OPTION 2 – REQUIRES ACCESS TRAIL

Timeline: Start construction in 2020 Community led initiative: Economic & Cultural opportunities: Funding:

• Applications submitted for Territorial and

Federal government funding 18

NAR Laydown Q1-4 Kimberlite

Access Trail ATV Upgrade: Access Trail New Alignment: Spur Road: Kimberlite: Bridge: Culvert: Aggregate Deposit:

11 km 4 km 1.5 km

Community Access ATV Trail Upgrade

Q1-4 A34 A94 A76

ROAD ACCESS: BLUE SKY EXPLORATION

A94

• ~10 hectares
• Diamondiferous
• 2 angled drill

holes (@450)

• Both >300m &

ended in kimberlite

All other kimberlites are under-evaluated with limited drilling – similar age & mantle sample as Q1-4

• ~3 hectares
• Diamondiferous
• 2 angled drill

holes (@450)

• 1 hole ends in

kimberlite

A34

• ~3 hectares
• Diamondiferous
• 3 angled drill

holes

A76:

19

20

A34 A94 A97 A76 A42 A152 A59

RENEWED EVALUATION OF OTHER KIMBERLITES

A34 A34 Cross Section - Looking West 100 m 2003-08-08 2003-08-07

220 m

RENEWED EVALUATION OF OTHER KIMBERLITES

2003-08-08 2003-08-07 220 m

?

satellite image airborne magnetics airborne EM 6200 Hz

Kimberlite A34

21

2003-08-25 2003-08-14 385 m

satellite image airborne magnetics airborne EM 6200 Hz 2003-08-14 2003-08-25 100 m

385 m

? A94 Cross Section - Looking Northwest

Kimberlite A94

RENEWED EVALUATION OF OTHER KIMBERLITES

22

WAY FORWARD – SUMMARY TIMELINE

23

• Fabrication – ~October order to meet June delivery
• Delivery/Commissioning – Earliest Summer 2021
• Currently permitted for 1,500t – Summer 2020
• Processing & Results Fall 2020/Spring 2021
• 10,000t sample – requires access road
• Permitting required (drafting stage)
• Earliest collection - 2021

Processing Plant: Design Engineering Study Access Trail: Permitting & Funding – In Progress

• Construction start – Summer 2020 (funding needed)
• Construction completion – Late 2020 / early 2021

Exploration Potential: Detail Review & Evaluation – In Progress Bulk Sample: Staged Approach

There is no other diamond project in the world at this stage of assessment without the involvement of a diamond producer. SFD & Diamond value are the last variables. All the other boxes are ticked.

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

24

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

Mel Project (100%)

2

2

MEL KIMBERLITES – EXCELLENT MANTLE SAMPLE

25

• livine

pyrope garnet ilmenite

MEL PROJECT - MICRODIAMOND RESULTS

26

*Stones per tonne per Unit Interval

Body Sample Weight Dry Kg Number of Diamonds per Sieve Size (mm Square Mesh Sieve) +0.106

• 0.150

+0.150

• 0.212

+0.212

• 0.300

+0.300

• 0.425

+0.425

• 0.600

+0.600

• 0.850

+0.850

• 1.18

Total Stones ML8 (Lower) 24.15 3 2 1 1 1 8 ML8 (Upper) 270.5 20 16 17 10 1 2 3 69

1 cm

NEW KIMBERLITE TARGETS - NORTH TRAIN

ML8 Upper and Lower Kimberlites ML345 Kimberlites

27 2018 sampling extended the train further to the north; sample 600m north of the ML8 kimberlite had 34 KIMs

MEL PROJECT – WAY FORWARD

OCEAN

ML-345 ML-8 Upper ML-8 Lower 28

WAY FORWARD Camp is in Place Geophysics Till Sampling Prospecting Drilling

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage 5. Pikoo (100%) Kimberlite Field discovered by North Arrow

Next stage of diamond exploration could lead to discovery

5

29 Excellent diamond potential

PIKOO PROJECT, SK

• North Arrow (100%).
• Good local infrastructure; within 10

km of SK Hwy 911– more than 200 km from nearest kimberlite field (FALC).

• 10 discrete kimberlites discovered

to date. Five tested and proven diamondiferous.

• PK150 – most significant diamond

discovery; 1,232 diamonds > 0.106 mm from 531 kg.

• 2016 drill program discovered

PK346 and PK347 kimberlites.

• Till sample results suggest more

unique unsourced KIM trains.

30

23 +0.85 mm stones recovered from initial 2013 209 kg PK 150 sample

PIKOO PROJECT, SK

31

• Increased sample density

throughout property has revealed independent source areas for at least 15 KIM trains; ~10 remain unsourced.

• North Pikoo - high interest

chrome garnets in till not found in known kimberlites.

• More diamondiferous

kimberlites are on the property.

Ice Direction

PK314

&“North Pikoo Dykes”

PK312 PK311 PK346 PK347

PK150

(plus PK151 and another dyke)

Deeper colour = more KIMs

Known kimberlites

?

Priority Targets

? ? ? ? ? ? ? ? ? ? ?

PK393 Target Bear Lake Target

PK 150 – MICRODIAMOND RESULTS

Compares well with two kimberlites currently slated for development

32

PIKOO PYROPE GARNET CHEMISTRY

33

EXISTING DIAMOND MINE

34

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

Loki Project

(100%)

3 LDG Project

(JV w Dominion; ~21% NAR)

4

LAC DE GRAS DIAMOND PROJECTS

GeoDan says “A relic of a previous kimberlite encased in a later pulse. This sample has a groundmass (gm) strongly altered to serpentine. Surrounding rock has a gm of carbonate &

• monticellite. From the Anchor kimberlite (LDG) discovered in 2019, NWT. FOV 7mm, PPL & XPL”

• Large project area (147,200 ha) south
• f Diavik & Ekati; 4 known kimberlites.
• Dominion Diamond Mines (Operator) is

focused on discovery to extend Ekati mine life.

• $3.5 M 2020 exploration program is

underway and will include spring and summer drilling.

LAC DE GRAS DIAMOND PROJECTS

35

• 8,607 ha; 100% NAR
• Kimberlite 465 discovered in 2018
• Diamondiferous EG05 kimberlite
• Additional targets associated with

unsourced KIMs

• Way Forward: till sampling,

geophysics & drilling Lac de Gras (LDG) Joint Venture Loki Property

• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4

kimberlite (~26 million carats)

• Two new diamondiferous kimberlite fields – Mel & Pikoo
• 465 – first Lac de Gras kimberlite discovery in over 5 years
• Anchor – first kimberlite discovery by the LDG joint venture
• 6 drill-ready (and fully permitted) diamond properties; including 5 that host known

diamondiferous kimberlite – Naujaat, Mel, Pikoo, Loki & LDG

DIAMOND DISCOVERIES: A CANADIAN LEADER

36 NAR: Canadian diamond sector’s most active & successful explorer over the last 7 years

Future Rough Diamond Supply Spotlight

• 152 million carats produced in 2017.
• Zimnisky predicts world rough production to be 125 million carats by

2025 (includes 5 M carats from Luaxe); an 18% decline.

DIAMOND PIPELINE – SUPPLY

• Closure of Victor,

Voorspoed & Argyle plus declining production from other mines (Jubilee, Diavik, Ekati).

• 2026 forecast total

production still below 130 million carats (includes Luaxe at full 8 M ct/yr); no

• ther >1 million ct/yr

producers on horizon. 37

Future Rough Diamond Demand Spotlight

DIAMOND PIPELINE – DEMAND

• U.S. retail market – almost 50% of global diamond jewelry sales; the

foundation of global end-consumer diamond jewelry demand.

• Middle-class growth in Mainland China and India still the strongest

driver of global diamond demand growth.

• De Beers’ Forevermark has stated that India may overtake China in

2020 as second largest market after the U.S.; market has grown by approximately 50% annually over the last three years.

Long-term scenarios for natural rough diamond demand, Bain & Company: Global Diamond Report, 2019

38

TSXV: NAR

Ken Armstrong

President & CEO

Nick Thomas

Community and Investor Relations Manager Suite 960-789 West Pender Street Vancouver, BC Canada V6C 1H2 Tel: +1.604.668.8354 Fax: +1.604.336.4813 info@northarrowminerals.com www.northarrowminerals.com @narminerals northarrowminerals