TSX-V: ADD | FRA: A182.F CORPORATE PRESENTATION MARCH 2019
CAUTIONARY STATEMENT ON FORWARD LOOKING INFORMATION These presentation materials (“the Presentation Materials”) are being supplied to you for information purposes only on Arctic Star. (the “Company”) . These Presentation Materials have been prepared by and are the sole responsibility of the Company. The Company have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. / These Presentation Materials are being distributed only to and are directed at (a) persons who have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “FPO”), (b) high net worth companies, unincorporated associations and other bodies within the meaning of Article 49 of the FPO or (c) persons to whom it may otherwise lawfully be communicated (together “Relevant Persons”) . Any person who is not a Relevant Person or who does not have professional experience in the matters relating to investments should not act or rely on this document or any of its contents. / These Presentation Materials do not constitute, or form part of, a prospectus relating to the Company, nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. Prospective investors are encouraged to obtain separate and independent verification of information and opinions contained in the Presentation Materials as part of their own due diligence. / By accepting these Presentation Materials, the Recipient agrees that the information contained herein or sent herewith or made available is for information purposes only. Without prejudice to the foregoing, neither the Company, nor its advisers nor its representatives accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith. / The distribution of these Presentation Materials in certain jurisdictions may be restricted by law and persons into whose possession these Presentation Materials come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdictions. / Some statements contained in these Presentation Materials or in documents referred to therein are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. 2
BOARD OF DIRECTORS & MANAGEMENT Patrick Power Buddy Doyle Scott Eldridge Roy Spencer PRESIDENT & CEO, VP EXPLORATION, COUNTRY MANAGER, DIRECTOR DIRECTOR DIRECTOR DIRECTOR Bill Ferreira Binny Jassal Thomas Yingling Sean Charland DIRECTOR CFO, DIRECTOR DIRECTOR DIRECTOR 3
WORLD DIAMOND ROUGH PRICES Gains made in early 2018 have been lost in the later part of that year, stabilizing now. Most of the price pressure is in the small good, less than 3 pointers (0.3 carats). Mainly due to producers reprocessing old tailing where smalls dominate, therefore short lived. USA & China demand strong 4
WORLD DIAMOND PRODUCTION FORECAST ↓ The world consumes 127 million carats of rough diamonds per year. That’s equivalent to the reserve of a medium size diamond mine per year. Argyle diamond mine is scheduled to close 2020. Udachnya and Mir diamond mines have recently closed. Very little global diamond exploration since the 2008 GFC. No new significant discovery since 1990’s. Source: Bain & Company 2018 5
DIAMOND PIPELINE – PRODUCERS HAVE THE HIGHEST PROFIT MARGINS Rough Diamonds Polished Jewelry Cutting Jewelry Production Sales Sales Retail and manufacturing polishing 35% of Market Top 5 Control Controlled by No. of Players ~100 ~5,000 ~10,000 70% largest Retailers Margins 22-24% 1-3% 2-4% 9-11% $87B per annum diamond $16B per $25B per Component $US Value annum annum $176B total jewelry Source: Bain & Consulting 2018 6
EXPLORATION STEPS TO PRODUCTION 7
MULTI BILLION DOLLAR DIAVIK MINE DIAMOND MINE DISCOVERY Buddy Doyle (Photo above) leader of the exploration team that discovered the Diavik Diamond Mine in Canada. Diavik has produced over 100 million carats since 2003. Vice President Exploration Arctic Star Exploration Inc. Diavik is operated by Rio Tinto and sold 40% to the Washington Group for $1.2B. 8
MULTI BILLION DOLLAR GRIB MINE DIAMOND MINE DISCOVERY Roy Spencer (Photo above) leader of the team that discovered the Grib Diamond Mine in Russia. Same geological setting as our Timantti diamond project. Otkritie Industrial Investments purchased Grib for 1.45B. AGD Diamonds recently consolidated with Otkritie 9
TIMANTTI PROJECT FINLAND – A NEW DIAMOND BEARING KIMBERLITE FIELD TIMANTTI : This is the word for Diamonds in Finnish. The Worlds most recently recognised new diamond bearing Timantti kimberlite field. Project Finland Was Ranked as World’s #1 Mining Jurisdiction in the world by the Fraser Institute 2018. Same Geological belt. The Baltic Sheild, as Grib & Lomonosov. Both Mines Are Multi Billion Dollar Producers. 10
ARCTIC STAR TITLE KIMBERLITE TIMANTTI – DIAMOND IN FINNISH Exploration Reservations 193,700 Ha RUSSIA Exploration Permit. 289 Ha Explortion Permit application 1000 Ha Timantti project East of the town of Wolves Kuusamo. ARCTIC STAR White, Black and Grey Wolf kimberlites Vaasa Dykes KUUSAMO Kasama Kimberlites All Diamond bearing A NEW LARGE DIAMONDIFEROUS KIMBERLITE FIELD 100% OWNED ARCTIC STAR FINLAND ICE DIRECTION AND Kasama . LOCATION OF BORDER INDICATOR ANOMLAIES KNOWN KIMBERLITES 11
TIMANTTI – WORLD CLASS INFRASTRUCTURE The Timantti project lies between Kuusamo and the Russian border to the east. It has excellent infrastructure. It is possible to get taxi from the airport to our first kimberlite discoveries 24 kilometers away. Air photo Kuusamo. Kuusamo lies on crossroads of Part of the national energy grid Source Kuusamo city website. two major highways Adven owns a 6MW electricity Source Photo commons. The municipality has a population plant in town which uses of approx. 15800 people. Its main sawmill rejects. Map shows grid Source Fingrid website industries are Tourism, forestry, Reindeer herding, government and light industry. Kuusamo International airport, Ruka Finlands ’ most popular daily flights to Helisinki Source visit finland. Ski resort lies 27km north of town outside the project area Source Ski finland. 12
TIMANTTI HISTORY – 2018 WORK PROGRAM 4 Diamond Bearing Kimberlites Discovered Ground Geophysics Complete: Magnetic, Gravity and EM Surveys Excavator Till Sampling: 20 Samples ~50lbs Drilled Approximately 600m 13
TIMANTTI – DRILL COLLARS Location of drill collars and Kimberlites Vasa Dykes discovered to date Grey background Digital Elevation model Grey Wolf Ice direction characterized by drumlins Scale bar 500m White Wolf Black Wolf 14
THE THREE WOLVES Plan showing the drilling at the three wolves, Grey, Black and White left to right. They occur within 300m of each other. They are not classic Kimberlite pipes. Current interpretation is they are part of a dyke, sill system, 30m wide dipping to the North @ 35 degrees There is evidence this system may extensive with similar magnetic anomalies on the same trend to the West. All are significantly diamond bearing 15
TIMANTTI – WHITE WOLF DIAMOND RESULTS Sample Total Kimberlite +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Weight Kg Stones White 262.33 393 168 95 62 18 11 7 3 758 Wolf 2018 White 147.60 123 85 41 19 9 5 0 2 274 Wolf 2017 Total 409.93 516 253 136 81 27 16 7 5 1,032 White Wolf has the better results with 12 stones above 0.85mm From only 410kg or 30 commercial stones per tonne 16
TIMANTTI – DIAMOND RESULTS Sample Total Kimberlite +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Weight Kg Stones Grey Wolf 101.66 29 14 13 8 1 1 0 0 66 (Drill) Grey Wolf 99.98 28 18 20 8 1 2 0 1 78 (Trench) Black 349.75 267 138 87 45 16 3 3 0 559 Wolf Vasa 25.74 1 5 5 0 0 0 0 0 11 Dykes 17
Recommend
More recommend
