North Arrow Reports Disappointing Valuation of $36 P/C From Sample

Mining and Exploration
09/06/2015 17:01

North Arrow Minerals confirmed that a parcel of 383.55 carats recovered from a bulk sample at the Qilalugaq diamond project in Canada had a value of $36/carat, which is even lower than their modeled "possible low" of $43/carat and "possible high" of $92/carat. Summing up the valuation, Ken Armstrong, North Arrow’s president and CEO said, “[O]bviously the result wasn’t what we were hoping for”, but he also remarked that, "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 has been working toward earning an 80% stake in the Qilalugaq diamond project from Stornoway Diamond Corp by completing  the  bulk sample. Now that the requirement is fulfilled, North Arrow anticipates notifying Stornoway of its intent to vest an 80% interest in the project, subject to a one time back-in right held by Stornoway.