North Arrow Minerals Inc. V.NAR

2014 Bulk Sample compared assuming 6.1 carats/100 tons

[nozzpack]

All Values in CAD unless otherwise stated.
Prices in 2022 based on order of magnitude increase for yellows


Year                        Carats/100 t                 Price                    Value/100t

2014                         28.4                            $50                         $1420

2022                          6.1                             $500                       $3050      

In 2014, they modelled recovery value of $42 US per ton but recovered $36 US per ton .

I could find no cost per ton mined but assume that it would have been less than the $43 US per ton modelled price, otherwise take the bulk sample.

Further, sorting will now be done by mechanical sorter which will be much faster, as far less waste or need to be mined at the much higher cutoff grade.

A third point is that they will periodcally recover the odd high quality yellow/ornage diamond that might fetch in excess of $100,000 in the market  .

We are now getting much closer to a more accurate expectation, as they surely have done the same modelling exercise which provides the expected grades and have set their margins from prices that are much lower than current.

Hence, I like our chances here...

[explman]

Your analysis is flawed, and fatally so. Mining costs in the arctic are high. Use Mountain Province as a proxy. Their processed costs are $125-$135 / tonne (per their latest guidence)Their grade is ~1.8 c/t, or 180 cpht. Round up to 200 cpht and you get roughly US$50/carat costs. Cost per tonne processed will be relatively fixed, regardless of the operation, so lets assume US100/tonne processed

[eddy0505]

Question . Why would Burgundy commit to a $ 6 million bulk sample then & option further millions for 2nd bulk sample if your analysis is correct ? Not to mention top industry insiders that are invested.

[explman]

Because they want to test the hypothesis that the grade is under represented in the both the NAR and BHP bulk samples. They also want to acquire additional material to see if they can "fill out" the size-frequency distribution curve to see if there is the potential for a "Lucara" outcome. And for $5.6M they get 40%. For Burgundy, a reasonable risk reward. Have a think about how

[explman]

And finally, they want to test the hypothesis that there are additional phases that have not been sampled that will be higher grade, larger size frequency distribution, better diamonds, or some combination of all three.

[eddy0505]

Fairly said - let's see. Any success or positive results & the uniqueness of the project will spike share price and market cap. I'm in for a few.

[nozzpack]

Just look at this bashers posting spore. He bashes every stock that he flits on. Place him on Ignore

[explman]

One persons truth is another persons bash I guess.  

[Trinity7]

Wrong, this is all about the yellow diamonds which weren't included in the previous valuation study as the company who did it saw them as not interesting. These yellow diamonds were GIA certified in the end and of high quality which would make the mine highly profitable. Burgundy mines full of experienced people in this industry believe in this project. So does Ross Beaty, Lucas Lundum, Eira