Mining News: Northern Neighbors: Q1-4 diamond valuation cautiously low

North Arrow Minerals Inc. June 9 reported that a parcel of 383.55 carats of diamonds greater than +1DTC (about 1 millimeter) recovered from a bulk sample collected at the Qilalugaq Diamond Project was valued at US$13,795, or US$36 per carat. A modeled range of possible values also was calculated with a “possible low” model price of US$43 per carat and a “possible high” model price of US$92 per carat. “The diamond parcel recovered from the Q1-4 bulk sample is very small and, as a result, the primary conclusion reached by WWW (International Diamond Consultants) is that these valuation results and modeled values should be treated with considerable caution when it comes to assessing the Qilalugaq Project,” said North Arrow President and CEO Ken Armstrong. “The valuation of this small diamond parcel is further challenged by the presence of two distinct diamond populations, including a population of rare Type Ib yellows diamonds.” Additional evaluation of the project will require the recovery of a larger diamond parcel including sufficient carats from each of the two populations to allow for a more confident assessment. North Arrow will review options for the cost-effective collection of a larger sample, taking advantage of Q1-4’s large size and advantageous location near tidewater and the Hamlet of Repulse Bay, Nunavut.

- Shane Lasley