Filled bags in the upper terrace of the Main Pit at the Q1-4 sample site.

Filled bags in the upper terrace of the Main Pit at the Q1-4 sample site. (NAR photo)

Canadian diamond explorer North Arrow Minerals (TSXV:NAR) is backed by Gren and Eira Thomas, Canada’s pioneering diamond family, and Lukas Lundin, the Swede natural resources developer.

The company is focused on two projects, the more advanced Qilalugaq Q1-4 kimberlite in Nunuvut, and the earlier stage Pikoo project in Saskatchewan.

Pikoo gets more interesting

At Pikoo, the company has defined new kimberlite indicator mineral (KIM) trains that are separate from the 2013 discovery that got this play going. A follow up till sample program is underway to define targets for a winter 2015 drill program.  Additionally, the company has picked up more ground near Pikoo from Michael Schuss’s Canadian International Minerals (TSXV:CIN). North Arrow can earn a 70% interest in CIN’s Pikoo Extension A and B properties, subject to a 2% royalty in favor of CIN, provided North Arrow reimburses claim staking costs and funds exploration to the point of a diamondiferous kimberlite discovery at the properties. North Arrow may buy back 1% of the royalty at any time for $1,000,000.

Q 1-4 bulk sample diamond value on schedule

At Qilalugaq, North Arrow completed a 1,500 tonne bulk sample earlier this summer on schedule, which was an achievement for the small company. This morning the company reported that the bulk sample has arrived by sealift in Montreal. “Starting in early October, the sample will be processed for the recovery of commercial sized (+0.85 mm) diamonds and the resulting diamond parcel will be used to provide an indication of Q 1-4’s overall diamond value as well as the sample’s diamond content, size distribution and to establish whether or not fancy yellow diamonds seen in earlier-stage sampling persist into the larger diamond sizes.”

Diamond values from the bulk sample, expected in Q1-2015, have the potential to be company making for North Arrow. In a healthier overall junior resource market, we would expect a speculative premium to start building in North Arrow’s stock ahead of the result.

More: North Arrow Identifies New Targets at the Pikoo Diamond Project

Disclose: I own shares in North Arrow. Always do your own due diligence.