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May 16, 2013 --- Vol. 07, No. 20May 2013


DIAMONDS – North Arrow Minerals Inc. May 15 said it filed on SEDAR an NI 43-101 technical report restating and confirming a mineral resource estimate for the Q1-4 kimberlite located at the Qilalugaq diamond project in Nunavut. The Qilalugaq project includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes. North Arrow currently holds an option to earn an 80 percent interest in the project from Stornoway Diamond Corp. The mineral resource estimate remains unchanged from the June 2012 mineral resource estimate reported by Stornoway. Highlights of the NI 43-101 technical report include a total inferred mineral resource for the Q1-4 kimberlite pipe of 26.1 million carats from 48.8 million metric tons total content of kimberlite 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 has been identified in the form of a target for further exploration for the Q1-4 kimberlite pipe of between 7.9 million to 9.3 million carats from 14.1 million to 16.6 million metric tons total content of kimberlite with an average +1 DTC total diamond content of 56.1 cpht, extending from 205 meters depth to 305 meters depth. 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. The Qilalugaq Diamond 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 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-kilometer by 3-kilometer structurally favorable corridor. The 12.5-hectare (30.89 acres) Q1-4 kimberlite, the largest kimberlite pipe in the eastern Canadian Arctic, is situated about 8 kilometers (5 miles) from tidewater, and less than 9 kilometers (5.6 miles) from the hamlet of Repulse Bay. Q1-4 is interpreted as a complex, steep-sided, diatreme to root-zone kimberlite, with a lobate external shape. It is comprised of five phases of kimberlite: A28a, A48a, A48b, A61a and A88a, and has been geologically modeled to a depth of 305 meters below surface. The pipe shape was defined from drill-hole data, country rock and kimberlite outcrop exposures, and magnetic geophysical surveys. Kimberlite geology has been determined using detailed logging of drill core and results of petrographic studies and includes massive volcaniclastic kimberlite classified as “tuffisitic” kimberlitic breccia, lesser coherent “hypabyssal” kimberlite, and varying proportions of country-rock xenoliths. The mineral resource estimate was authored by Geostrat Consulting Inc. and comprises the integration of kimberlite volumes, density, petrology and diamond content-data obtained from 5,133 meters of diamond drilling, 2,714 meters of reverse circulation drilling, 2.9 metric tons of samples submitted for microdiamond analysis, 257.7 metric tons of samples submitted for macrodiamond sampling with 59.2 carats of diamonds (2,054 stones) recovered from RC drilling, 7.5 carats of diamonds (205 stones) recovered from surface trenching and 2.36 carats of diamonds (69 stones) recovered from HQ diameter diamond drilling. These data summarize the results of exploration programs conducted on the Qilalugaq Property by BHPB from 2003 to 2005 and by Stornoway from 2006 to 2012.

The technical report recommends proceeding to the collection of a large tonnage surface sample at Q1-4 to collect about a 500-carat parcel of diamonds 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. North Arrow is making plans to proceed with the collection of a bulk sample during the summer of 2014.

GOLD – Elgin Mining Inc. May 13 reports financial and operational results for the three months ended March 31, including gold production of 10,034 gold ounces. Elgin Mining owns and operates the Björkdal gold mine in Sweden and is advancing the Lupin gold mine in Nunavut towards a potential restart of operations. The company posted a net loss of C$3.6 million, included C$2.5 million in Lupin pre‐development costs, for the first quarter. At March 31, cash and cash equivalents totaled C$11.5 million and working capital totaled C$17 million. Elgin Mining said that as a cash conservation measure, the Lupin camp and operations were shut down in late April 2013 and will remain closed indefinitely. No mobilization of mining equipment to site was made and no underground mining activity was conducted prior to closure of the camp. Only essential work will continue during this period of shutdown to ensure all key permits are kept in good standing. The Lupin camp and surface infrastructure are in excellent condition and will allow Lupin to re‐open expeditiously should market conditions and the price of gold, among other factors, improve to allow the company to re‐commence work. A copy of the company’s financial statements and management’s discussion and analysis can be viewed on the company’s website at or on SEDAR at

URANIUM – AREVA Resources Canada Inc. submitted responses to technical comments to the Nunavut Impact Review Board on May 8 in support of its Kiggavik project’s draft environmental impact statement. Kiggavik is a proposed uranium mining and milling operation that would be located about 80 kilometers (50 miles) west of Baker Lake, Nunavut, and would employ 400-600 employees during operation and up to 750 people during construction. The submission of AREVA’s responses to more than 400 technical comments from various organizations represents the next step in the environmental review of the Kiggavik Project. The company said the approaches outlined in the responses, which are addressed by topical group, will inform AREVA’s approach to the completion of the Kiggavik Project’s final environmental impact statement. “With our responses to technical comments, AREVA’s Kiggavik Project has taken another important step forward in its environmental review. The responses submitted today outline the careful planning and rigorous analysis that AREVA will employ as it completes the Kiggavik Project environmental impact statement. We appreciate the constructive feedback and consultation from Nunavummiut, regulators, governments, organizations and others as we work to develop a sustainable, well-run project with minimal impact on the environment,” said Barry McCallum, manager of Nunavut Affairs at AREVA. The responses to technical comments are available on the Kiggavik Project blog, launched in early May.

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