In November 2013, Canadian diamond explorer North Arrow Minerals (TSXV:NAR) made an exciting discovery at its Pikoo project in Saskatchewan, finding diamondiferous kimberlite at PK-150.
The microdiamonds found in the drill core were exciting for the small company, although critics said there wasn’t much potential for size.
This morning, North Arrow announced results from the first follow up drill program since the original Pikoo discovery.
The goal of the program was to expand PK-150 and to discover new kimberlites (formed from magma that can bring diamonds from the earth’s mantle to the surface) within the project, and North Arrow appears to have been successful in its goal. Drilling suggests PK-150 has roughly doubled in size, now extending to 199 meters depth, from 120 metres in 2013. Additionally, the strike length has increased from 75 metres to 150 metres.
Importantly, drilling has confirmed PK-150 is not constrained by its magnetic signature, which opens the door for an entirely new target style on the property. For the last hole of the program, North Arrow stepped out 50 meters to the east of PK-150’s 2013 drill holes, and encountered a 30 m kimberlite section that is weakly magnetic, implying that PK-150 is bigger than expected and remains open to the east.
PK-314 is the most significant new discovery of the program and appears to be of similar size or bigger than PK-150. PK-314 was drilled below 200 meters depth with approximately 20-25 metres true width. It remains open to depth and along strike.
North Arrow already knows that PK-150 is diamond bearing, and will log the drill core from the current program there and at PK-314, prior to analyzing the core for microdiamonds to get a handle on diamond content and grade. These results will be released to the market as they become available.
The kimberlites found at Pikoo are wide open, so more drilling will be required for the company to get a handle on dimensions.
Ken Armstrong, President and CEO of North Arrow, commented “The 2015 winter drilling program was a success and has confirmed the Pikoo Project’s potential for multiple diamondiferous kimberlite discoveries. The discovery of an extensive zone of weakly magnetic kimberlite at PK150 has not only increased the size of the body but also opens up possibilities for new kimberlite targets within the project. Additionally, the PK150 and PK314 kimberlites display textures consistent with, or transitional to, diatreme-like kimberlite bodies. These are not simple kimberlite dykes. Further detailed logging of the drill cores is underway to confirm these interpretations, which have important positive implications for ongoing exploration of the property.”
Pikoo is North Arrow's second highest priority project. The company is working through a 1500 tonne bulk sample from the Q1-4 project in Nunavut, with final results and a diamond value expected in the next quarter.
Here is a link to today’s news release: North Arrow Discovers Three New Kimberlites at the Pikoo Diamond Project, Saskatchewan
We will post any analyst comments here as they arise.
Disclaimer: author is long North Arrow and they sponsored our recent Subscriber Summit. Here is North Arrow CEO Ken Armstrong's presentation from the Feb 28, 2015 event:
This article contains "forward-looking statements" including but not limited to statements with respect to North Arrow’s plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to general economic and market conditions; closing of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. Although North Arrow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. North Arrow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.