North Arrow Minerals (NAR-V) hits kimberlite at Pikoo
June 26, 2013 - News Release
Kimberlite has been intersected in the first hole of a drilling program currently under way at North Arrow Minerals Inc.'s Pikoo diamond project, located approximately 140 kilometres east of La Ronge, Sask. The 2,000 m drilling program is being funded by North Arrow as part of an option agreement with Stornoway Diamond Corporation under which North Arrow can earn an 80% interest in the Pikoo project. Drilling is intended to test a number of kimberlite targets associated with the North Pikoo and South Pikoo kimberlite indicator mineral trains (Please see North Arrow news release #13-06 dated April 29, 2013 for details). Drill hole DDH 13PK-01 (-48 degrees /028 degrees Az), testing a target in the North Pikoo area, cut a 0.60 m hypabyssal kimberlite dyke at 110.7m down hole. This represents the first bedrock occurrence of kimberlite in this area of the Sask Craton, Saskatchewan and confirms the potential of the Pikoo project to host a new kimberlite field in Canada. The current program is anticipated to run through the end of July, 2013.
North Arrow retains the right to earn an 80% interest in the Pikoo diamond project by completing an option work program consisting of 2,000 m of diamond drilling including a minimum of two drill holes at each of the North and South Pikoo areas. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80% interest in the project, Stornoway has a one-time right (the "Back-in Right") to buy-back a 20% interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work program. Upon earn-in by North Arrow, North Arrow and Stornoway will form a joint venture for the purpose of further exploration of the Pikoo project, and the interests will be 80% North Arrow and 20% Stornoway, unless Stornoway exercises the Back-In Right, in which case the interests will be 60% North Arrow and 40% Stornoway.
Qualified Person
Kenneth Armstrong, P.Geo. (ON), President and CEO of North Arrow and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.
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