North Arrow Minerals
Financials:
Primary ticker: TSXV:NAR
Stage of development: Exploration
Primary minerals: Lithium
Project to promote: DeStaffany Lithium Project
Project location: Northwest Territories, Canada
Website: www.northarrowminerals.com
North Arrow is a Canadian based exploration company focused on the identification and evaluation of lithium and other exploration opportunities in Canada. Led by a team with significant successful experience globally in the exploration and mining industry, North Arrow is preparing to evaluate spodumene pegmatites at the newly acquired 100% owned DeStaffany Lithium Project located on Great Slave Lake in the NWT. North Arrow also owns interests in the Naujaat (NU), Pikoo (SK), Mel (NU), Loki (NWT) and LDG JV (NWT) Diamond Projects and maintains a 100% interest in the Hope Bay Oro Gold Project (NU), located approximately 3 km north of Agnico Eagle’s Doris Gold Mine.
Cash: CAD$2.5 M
Debt: CAD$300,000
Major shareholders:
Ross Beatty – 7%
Lundin Family Trust – 6%
Electrum – 6%
Management Ownership – ~28%
Management Profile
Ken Armstrong – President and CEO
Mr Armstrong brings to his position, over 27 years of experience in the exploration industry. Through this time period Mr. Armstrong has been involved in diamond, lithium, gold and nickel exploration in North America. From 2008 to 2010 he was involved in North Arrow’s lithium in spodumene exploration in North Carolina and northern Canada. Mr. Armstrong also serves as a director of Cornish Metals Inc. and as a director and current past President of the Northwest Territories & Nunavut Chamber of Mines and is a registered Professional Geoscientist in the Northwest Territories, Nunavut, and the Province of Ontario.
What is your rationale for taking part in 121 Mining Investment?
The company has recently returned to exploring for lithium bearing pegmatites after spending a decade moving forward our diamond projects in Canada. Our Chairman, Gren Thomas’ successful history of exploration and discovery in the Northwest Territories brought to light two lithium bearing pegmatite deposits (Moose 1 and 2) near the shores of Great Slave Lake (barge access) within the Yellowknife Pegmatite Province that had been overlooked. This region is the heart of a lithium staking rush and is the focus of other established lithium explorers such Li-Ft Power, Gama Explorations and Patriot Battery Metals.
We are looking for market support as well as new future financing relationships (just completed a shorter-term financing raising $2.4 M). Preliminary work on DeStaffany will be commencing in June and includes the potential for new discovery. Drill program for proving up current deposits commences September.
What recent news would you like to highlight to investors attending?
March 30, 2023: NORTH ARROW IDENTIFIES PEGMATITE TARGETS AT DESTAFFANY LITHIUM PROJECT, NWT https://www.northarrowminerals.com/news/press_releases/index.php?content_id=298
April 24, 2023: NORTH ARROW ANNOUNCES $2 MILLION PRIVATE PLACEMENT FINANCING
https://www.northarrowminerals.com/news/press_releases/index.php?content_id=299
May 18, 2023: NORTH ARROW CLOSES $2.42M PRIVATE PLACEMENT FINANCING AND SALE OF ROYALTY INTERESTS IN LOKI PROJECT, NWT See website.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
-Commence IR Programs through Stockhouse and Investing News Network (and The Assay!) to notify the market of our change in direction into Lithium.
– Complete community consultation work in Yellowknife and Lutsel K’e and wrap up permitting.
-June 2023: Collect preliminary samples of known mineralization at Moose 1 and Moose 2 for metallurgy work, and map deposit boundaries. Has prospect two known showings and look for new discoveries around anomalous rock samples from historical work.
-Announcement of partnership and potential program announcement for Oro Gold Project near Doris Mine.
-Get on the ground in Bathurst Inlet and Baffin Island acquisitions to determine mineralogy of pegmatites staked there.
6 Months:
DeStaffany drilling (Sept. 2023) – Delineate at depth and laterally known spodumene bearing pegmatities, Moose 1 and 2; drill two other known occurrences as well.
-Release news on lithium spodumene mineralogy (percent lithium etc) and drilling results.
-Consider mining scenarios of DeStaffany’s Moose 1 and Moose 2 deposits.
-Release results of rock samples, if taken during reconaissance visits to Bathurst Inlet and Baffin Island.
12 Months:
-Consider sorting technology for non-lithium bearing minerals from pegmatite and then spodumene from other lithium minerals.
-Present mining scenarios to impacted stakeholders and commence permitting for test mining into mining type scenario.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
We have been a diamond explorer for a decade and we are recovering from a disinterested market and difficulty financing.
A challenge now is for us to prove that we are not just a hot-commodity chaser; that we have lithium exploration know-how and have potential to get our spodumene to market quickly; to stand out amongst the hoards of lithium explorers that are out there now.
Another challenge could be bringing in new shareholders with the 174 million shares we have outstanding. Our market cap however remains low and presents a significant upside when compared to our peers working in the area.
Long-term risks to consider is the ability of a sodium ion battery to take a certain market share away from lithium over the next twenty years.
A positive and mutually beneficial relationship with the First Nations in the area is very important. Political risk always needs to be considered when exploring in Canada. At this point in time North Arrow does not foresee a risk in this department. Our communications have been quite good. Two of our peers in the area have recently announced receipt of their Land Use Permits.
What do you think makes your company such a compelling investment?
Despite a large group of junior companies active in the sector, our project has the potential to get to production (in the form of a spodumene concentrate) fairly quickly.
Our proximity to Great Slave Lake offers barge access to a rail head in Hay River and eliminates the problem that is often lack of infrastructure in northern Canada.
The fact that the lithium demand has a shortfall that can be foreseen beyond 2030 demonstrates if we can get our product to market in a the company will be rewarded. Potential for cost saving with other active companies also exploring for lithium in the area; possibility for M&A activity.
Our fairly recent entrance into the market from the diamond market offers a below the radar, low market cap, opportunity with pronounced potential upside as we focus on waking the market up to this story.
What are the top 3 key investor takeaways?
We have Management with a proven track record of discovery and development in Canada (Diavik, Nechalacho) and supportive, strategic shareholders.
We are financed to conduct our 2023 exploration program that has the potential to increase the value of our DeStaffany Project a great deal which we believe will translate into the company’s valuation.
We are currently undervalued as a result of being a diamond explorer for a decade and not being known as a lithium explorer, but marketing programs are now in place to help grow awareness of our new direction and project so that our Market Cap may approach that of our peers in the area.