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| July 10, 2014 --- Vol. 08, No. 28 | July 2014
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Nunavut
DIAMONDS – North Arrow Minerals Inc. July 10 reported the start of a bulk sampling program at the Qilalugaq diamond project located near the hamlet of Repulse Bay (Naujaat), Nunavut. The Qilalugaq project comprises 7,143 hectares (17,650 acres) 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 Diamond Corp. in 2006. Stornoway acquired a 100 percent 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 by three kilometer structurally favorable 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 metric tons with an average +1 DTC total diamond content of 53.6 carats per hundred metric tons extending from surface to a depth of 205 meters. Additional resource upside also has 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 metric tons with an average +1 DTC total diamond content of 56.1 cpht, extending from 205 meters depth to 305 meters depth. North Arrow 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. The intent of the 2014 program is to recover a diamond parcel of about 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 in which North Arrow can earn an 80 percent interest in the project. The 2014 program will include the collection of about 1,500 metric tons from the 12.5-hectare (about 31 acres) Q1-4 kimberlite, located seven kilometers (four miles) from tidewater on the Arctic Ocean and nine kilometers (five miles) from Repulse Bay. The sample is being collected by surface trenching of an area of Q1-4 where there is limited (<1 meter) overburden cover. In 2007, Stornoway collected (from hand dug pits) a 20.3-metric-ton 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-millimeter) 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. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80 percent interest in the project, Stornoway has a one-time right to buy-back a 20 percent interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work.
GOLD/SILVER – Aura Silver Resources Inc. July 10 reported that Agnico Eagle Mines Ltd. has begun an initial 1,000-meter drill program on Aura Silver’s Greyhound gold-silver roperty in Nunavut as part of an earn-in agreement. The agreement allows Agnico Eagle the right to earn up to a 70 percent interest in the Greyhound property. The drill program will target three distinct areas around Greyhound’s Aura Lake claim group. These areas include an area south and southeast of Aura Lake where multiple one-ounce gold samples and silver samples of up to 5,380 g/t were found by Aura Silver during soil sampling and the examination of sulphide-rich boulders; North Aura Lake where base-metal samples assaying up to 9.2 percent copper and 18.5 percent zinc were found during previous prospecting surveys by the company’s geologists; and the Dingo prospect to the northeast where prior discoveries include copper mineralization in a 200-by-300-meter gossan zone and in the same general area a one kilometer-long quartz vein, which assayed up to 9.1 g/t gold and 96.6 g/t silver. During this initial drill program roughly 300 meters will be drilled for each area. All targets are located nearby the access road that connects Agnico Eagle’s Meadowbank Mine to the Baker Lake community providing excellent access to develop the potential of the property. Robert Boaz, CEO of Aura Silver commented, “This is an exciting time for Aura Silver as we hope to realize the value of the work we have done to date and which our partner has evaluated by analyzing both the geochemical and geophysical anomalies in all three target areas. This is a highly prospective area of Nunavut, and we are happy that Agnico Eagle has joined us in our exploration endeavors.”
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