North Arrow Minerals Inc. NHAWF

Question

[Rainyday]

I have been trying to estimate the value of NAR's diamond deposit assuming Burgundy gets 60% and assuming full dilution for options and warrants. I've found bits and pieces of info on diamond producer revenues and costs but nothing really helpful for the type of deposit NAR has. About all I can conclude is that the stock seems extremely cheap - less than $2 / carat in the ground based on 40% of the project. I've analyzed oil & gas and precious metals companies for years and $/Bbl. or $/ounce in the ground are key metrics. Do you folks know of some info that might help me do a better analysis?
Thank you for any advice you can provide.

[nozzpack]

It's quite difficult as there are few close proxies from which to cross compare. My view on this is that Burgundy has the expertise to carry out such Feasability study, has done it, and is now awaiting results of a bulk sample to confirm its financial metrics. We know the approximate resource potential , that densities are quite robust and that we will have a relatively cheap cost basis.

[Rainyday]

Thank you for your thoughtful response - much appreciated.

[nozzpack]

A brief comparison with Mountain Province rough Diamond mine in NWT. Currently producing $400 million cad per year based on Approx 4 million carats which receives $100 cad per carat. Cash costs about $50 cad per carat mined. Strip ratio 10 to 1..........strip ratio is 3 to 1 High transportation costs.......transportation costs 50 % of Kutcho Enterprise value of $650 m cad for 49% of the Kutcho