Bulk sample results boost diamond junior North Arrow

The initial results of a bulk sample from North Arrow Minerals’ (TSXV: NAR; US-OTC: NHAWF) Q1-4 kimberlite, at the Qilalugaq project in Nunavut, show that the yellow diamonds that were recovered in early sampling persist into larger diamond sizes — which could enhance the project’s value.

At 609 tonnes, just under half of the 1,500-tonne sample has been processed, with 5,366 diamonds greater than 0.85 mm and weighing a total of 189.97 carats recovered.

Yellow diamonds accounted for 8.5% of the stones, or 21.4% of the diamonds by weight.

Commenting on the results in a press release, North Arrow president and CEO Ken Armstrong noted that the results confirm that the project hosts commercial-sized yellow diamonds.

“In fact, the proportion of yellow diamonds increases, both by stone count and carat weight, as the diamonds move into the larger size classifications,” Armstrong said. “This was one of the main questions the bulk sample was intended to answer.”

North Arrow shares traded as high as 89¢ on the news, up 21¢, or 30%, before settling at 84¢.

Of the diamonds recovered in the bulk sample, 17 were larger than 0.6 carat, and eight were larger than 1 carat. The three largest stones were: a 4.42-carat greenish yellow cubic aggregate; a 4.16-carat intense yellow cubic aggregate; and a 3.53-carat pale yellow cubic aggregate.

North Arrow conducted the bulk sample program in mid-2014 so that it could collect enough diamonds (at least 500 carats) for an initial valuation. So far, the company says that recoveries are in line with expectations for the sampled area of the kimberlite.

The Q1-4 kimberlite has an inferred resource of 26.1 million carats contained in 48.8 million tonnes grading 53.6 carats per hundred tonne (or 0.54 carat per tonne).

While fancy yellow diamonds command a premium in the market, the quality of the Q1-4 diamonds has not yet been assessed.

That will occur with an independent diamond valuation, once the bulk sample is processed in April.

North Arrow is earning an 80% interest in Qilalugaq from Stornoway Diamond (TSX: SWY; US-OTC: SWYDF), subject to a further 20% back-in right.

North Arrow has traded in a 52-week range of 40¢ to 89¢, and has 49.8 million shares outstanding.