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a fancy Contrarian opportunity March 2, 2021 ( Newswire) James Kwantes of aid opportunities discusses North Arrow Minerals and explains why he believes the stage is determined for a diamond rebound. Tulips had been added to the Netherlands in the late 1500s and the country soon fell in love with the brightly coloured plant life. Their arrival coincided with the Dutch Golden Age, when manage of profitable trading routes to the a long way East made the Netherlands a marine superpower and one of the world’s wealthiest international locations. exchange and the ensuing prosperity set the stage for the tulip bulb mania of the 1630s. Businessmen who grew to be wealthy buying shares in the Dutch East India business would decorate their estates with lavish flower gardens of tulips, which had been introduced from Turkey. The rarest and most valuable tulips had been those with genetic impurities, which produced shiny colorings and wonderful patterns. Human beings love herbal beauty. In diamonds as in tulips, the rarest and most beautiful are essentially the most positive. Lucara Diamond Corp. (LUC-T) has been demonstrating it for years, pulling striking stones out of its Botswana diamond mine and selling them for prices as high as US$63 million. That fee-tag, for the 813-carat Constellation, changed into more than Lucara paid for a controlling pastime within the Karowe challenge earlier than it grew to be a mine. Fancy purple diamonds from Rio Tinto’s these days closed Argyle diamond mine in Western Australia additionally command high prices. Human beings love natural beauty. it’s anything of a counterpoint to the narrative that De Beers created the demand for diamonds with its legendary "A Diamond Is invariably" advertising campaign in the late Forties. That branding certainly added diamonds to new markets, similar to Japan, and centered mass market attraction for diamond engagement rings. natural diamonds, of path, have been objects of need for thousands of years. in line with legend, a single Semper Augustus tulip bulb sold for the rate of a best Amsterdam canal condominium on the peak of the Dutch tulip bubble. Centuries later, it become decided that an epidemic had produced the shiny colours and wonderful patterns of the Semper Augustus. The tulip bubble rapidly collapsed. well-nigh 400 years later, even though, the Netherlands is still a flower powerhouse globally. In diamonds as in tulips, chemical impurities create the vibrancy and colour. Fancy diamonds fetch larger prices since the stones are infrequent and because they’re attractive. The presence of nitrogen, for example, is what gives a population of diamonds from North Arrow Minerals Inc. (NAR:TSX.V) Naujaat challenge in Nunavut their vivid orangey-yellow hue. STAGE SET FOR A DIAMOND REBOUND The staying power of natural diamonds has been challenged with the aid of every little thing from lab-grown stones to changing demographic trends to COVID-19. or not it’s been a rough experience for investors in Canadian diamond reviews, too-Dominion Diamond Corp. and Stornoway Diamond Corp., operators of two of Canada’s diamond mines, had been each forced into bankruptcy insurance plan. North Arrow has now not been spared. The stock has frequently been within the penalty field on account that a disappointing 2015 valuation of a 383.fifty five-carat parcel of Naujaat diamonds. The simple conclusion of the valuation turned into that consequences and modelled values should be treated with considerable caution on account of the small size of the sample. North Arrow has charge-effectively advanced Naujaat and its different Canadian diamond tasks due to the fact that, with successes together with the invention of new diamondiferous kimberlite fields at Pikoo (Saskatchewan) and Mel (Nunavut). whereas other diamond explorecos went bust or switched commodities, North Arrow shed non-core belongings, sold small royalties on secondary projects and did modest raises with aid from its billionaire backers. because the world slowly emerges from the pandemic’s grip and patrons from their buildings, herbal diamond costs and income are bouncing back strongly. rough diamond expenditures have rebounded and lately eclipsed pre-pandemic stages, experiences new york diamond analyst Paul Zimnisky within the February 2021 version of his State of the Diamond Market. De Beers just raised expenditures at its third consecutive sale, in response to Bloomberg. The pandemic seems to have created pent-up demand for rings and diamonds. Tiffany & Co., the world’s greatest jeweler, suggested record income for the November 1 via December 31 break period. China is main the manner, because the starting to be consumer powerhouse leaves COVID-19 in the rear-view replicate. Tiffany’s chinese earnings rose 50% during the break length. Richemont, the area’s 2d greatest luxury conglomerate, stated this fall revenue in China surged eighty% yr-over-year (Richemont is the parent business of Cartier and Van Cleef & Arpels). chinese language jeweler Chow Tai Fook opened 286 net new stores within the nation within the fourth quarter of 2020. From an funding standpoint, diamonds can be probably the most ultimate contrarian bets left in the commodity complicated. Base metals, battery metals, precious metals-expenditures of each and every have surged in the past year as inflation looms. Diamonds have lagged except these days, regardless of favorable deliver-demand dynamics popping out of a long undergo market that noticed global diamond exploration screech to a digital halt. tremendous diamonds and infrequent colored diamonds are leading the style. ultimate year Louis Vuitton, the world’s strongest luxury manufacturer and the recent acquirer of Tiffany & Co., bought two of Lucara’s most prized diamonds-the 1,758-carat Sewelo and the 549-carat Sethunya (above)-with plans to show them into superb centerpieces. The Sewelo is the second largest rough diamond ever mined. A fifty nine.6-carat fancy crimson diamond, the "crimson superstar," offered for a checklist US$seventy one.2 million in 2017. ENTER THE AUSSIES smart contrarian buyers are taking note. One is Michael O’Keeffe, an Australian entrepreneur who has made shareholders loads of cash in coking coal and iron ore. A metallurgist by working towards, O’Keeffe bought his beginning at Mt. Isa Mines and Glencore Australia earlier than launching his own ventures. O’Keeffe took Riversdale Mining, a $7-million Australian coal junior with property in Mozambique, to a $three.7-billion buyout with the aid of Rio Tinto in 2011. at the present time, O’Keeffe runs Champion Iron Mines (CIA-T). In 2015, Champion purchased the Bloom Lake iron ore mine in Quebec’s Labrador Trough out of bankruptcy for $10.5 million and assumed about $43 million in liabilities. O’Keeffe has turned the operation around, developing Champion into an exporter of top class iron ore focus to markets in China, Japan, Europe and in other places. Champion shares bottomed at $1.10 on the conclusion of March and now alternate at $5.forty, for a $2.6 billion market capitalization. O’Keeffe (above) settled on diamonds after scouring the funding panorama for contrarian alternatives. He teamed up with diamond veteran Peter Ravenscroft, who turned into independently forming a technique to consolidate the diamond venture development area. They fashioned Australia-listed Burgundy Diamond Mines (BDM-AX), which plans to become a mid-cap diamond producer with the aid of constructing premium tasks which have been left out and/or below-funded. In June, Burgundy signed a JV contend with North Arrow Minerals (NAR) for you to see Burgundy earn a 40% stake in Q1-4 by funding a $5.6-million bulk sample of 1,500 to 2,000 tonnes at Naujaat, North Arrow’s colored-diamond undertaking in Nunavut. Burgundy superior $300,000 of that final year so North Arrow may ship gasoline and sampling substances to Naujaat on the annual sealift. The aim of the majority pattern is to verify that the greater useful colored diamonds ensue in larger sizes all over the deposit. The favorable JV deal allows North Arrow to keep majority control of Naujaat on a associate-financed route and dependent timeline. It most likely helped that North Arrow CEO Ken Armstrong cemented a relationship with Peter Ravenscroft, Burgundy’s managing director and CEO, whereas the latter turned into in cost of useful resource delineation on the Diavik diamond mine in NWT. Ravenscroft is a diamond veteran with 40 years within the industry together with with De Beers, Anglo American and Rio Tinto. So what is Burgundy purchasing into? Naujaat’s Q1-four kimberlite hosts Canada’s biggest undeveloped diamond resource one hundred% held by using a junior. The deposit hosts an estimated 26.1 million carats (Inferred) from floor to a depth of 205 meters; 2017 drilling confirmed Q1-four extends under 300 meters depth. The outcropping kimberlite has a distinct population of infrequent orangey-yellow diamonds that may power the price proposition and make the deposit financial. The Q1-four deposit is seven kilometers from tidewater, close the group of Naujaat. If this summer’s bulk sample is a success, Burgundy might earn an further 20% hobby in Q1-four (60% complete). North Arrow and Burgundy have a non-binding letter of intent to negotiate a 2d alternative contract giving Burgundy the appropriate to earn the extra 20% interest through buying assortment of a subsequent 10,000-tonne bulk sample. The aim of that undertaking would be to definitely answer the diamond price question. The rate tag for that bulk pattern would be a lot larger, too-in the order of roughly $20 million. size concerns. SO DOES SATURATION Intriguingly, the flamboyant orangey-yellow diamonds tend to be greater than the different diamonds in Q1-4. The colored diamonds are a distinct, more youthful population of stones. In previous samples taken through North Arrow, they made up between 9% and 12% of the stones however as high as 21% to 30% via carat weight. establishing the size-frequency distribution of that fancy diamond inhabitants is the main goal of this summer time’s 1,500 to 2,000-tonne bulk sample. incredible diamonds that are saturated in colour can promote for multiples of the cost of white diamonds, but the mines producing them are shutting down. The latest is Rio Tinto’s Argyle mine in Australia, the area’s basic supply of fancy red stones. Argyle closed remaining year. The Ellendale mine, additionally in Australia, produced 50% of the realm’s fancy yellow diamonds and became Tiffany’s simple service provider for these stones. Ellendale closed in 2015 (despite the fact one other enterprise is attempting to revive the assignment). there have been some preliminary doubts that the Naujaat fancy coloured diamonds would cut and polish well. North Arrow addressed those issues with its reducing and polishing exercise that yielded desirable, helpful stones. The polished diamonds received favorable certifications by means of the GIA (Gemological Institute of the us). The diamonds were certified with the aid of GIA as fancy vivid orangey yellow-fancy vivid diamonds have the maximum color saturation and command premium valuations. appropriate group, LOW cost within the notoriously dangerous junior mining sector, investing with americans who’ve song facts of creating buyers funds greatly increases the odds of success. Gren Thomas, North Arrow’s chairman and a Canadian diamond pioneer, fits the invoice. On the heels of Chuck Fipke’s September 1991 diamond discovery, Thomas and South African diamond expert Chris Jennings (now a North Arrow director) headed north on a cloak-and-dagger staking mission. They flew into Yellowknife and cut up up at the airport, staying at diverse low cost motels as they systematically staked as tons potential ground as possible. "We got the feeling that town became just trembling on the verge of a staking rush," Thomas remembers. "At any minute, the whole place may blow huge open." That wintry weather staking experience eventually yielded the Diavik diamond discovery and Thomas’s Aber Diamond Corp. (forty% proprietor) saw the wealthy mine through to creation. That labored out somewhat neatly for shareholders. Thomas owns eleven.1% of North Arrow’s shares and recently extended his position via loaning the company $400,000. Jennings, his historic staking accomplice, owns a 5.three% stake in North Arrow. Gren’s daughter Eira Thomas led the container exploration group that made the Diavik discovery resulting in Canada’s second diamond mine. She co-headquartered each Stornoway Diamonds and Lucara Diamond Corp. and now runs Lucara, the realm’s premier producer of big, remarkable diamonds. Eira is a North Arrow marketing consultant and big shareholder who turned into key to securing Naujaat for the business. CEO Ken Armstrong is a 25-12 months veteran of the diamond space and has been involved within the discovery of 10 diamond-bearing kimberlites in Canada and Greenland. via Burgundy, O’Keeffe joins three billionaire backers who are worried with North Arrow. Mining tycoons Lukas Lundin (through Zebra) and Thomas Kaplan (Electrum) each and every own 10.three% stakes in North Arrow; Ross Beaty owns eight.eight% of shares. All three put cash into North Arrow’s last financing; insiders and key shareholders hang greater than 53% of North Arrow’s shares. A VALUATION hole There are not many lively junior exploration companies backed by means of the likes of Lundin, Beaty and Electrum that change beneath a $15-million market cap. and that’s no longer the most effective metric that implies North Arrow shares are basically undervalued at these ranges. Eira Thomas (left) and Gren Thomas (right) at the Diavik mine opening. trust the discrepancy in market capitalization between North Arrow and its JV companion, ASX-listed Burgundy Diamonds. The Naujaat diamond venture is the identified flagship for both organizations; after this summer’s bulk pattern, North Arrow will own a 60% hobby in Naujaat and Burgundy a 40% pastime. Yet accept as true with the market cap comparison between three way partnership companions: North Arrow Minerals
60% stake in Naujaat (flagship)
Canada’s finest portfolio of superior diamond exploration initiatives
one hundred% share in Hope Bay Oro, a gold assignment adjacent to Agnico Eagle’s Hope Bay mineMarket cap: C$12.2 million Burgundy Diamond Mines
forty% stake in Naujaat (flagship)
Exploration alliance in Botswana
Nanuk, an early-stage diamond mission in northern Quebec
Legacy Peruvian gold/silver asset (25%)Market cap: C$seventy six.9 million A GOLDEN call option Buried within the property portfolio is a gold asset that just moved up in relevance: the Hope Bay Oro property in Nunavut. Hope Bay Oro is at once north of Agnico Eagle’s Hope Bay gold mine, lately bought for $287 million from TMAC resources. previous to the purchase, Agnico Eagle had already upped its exploration funds. In subsequent interviews, Agnico CEO Sean Boyd has emphasized exploration as a key focal point at Hope Bay because the miner seeks oz to build annual construction stages. North Arrow’s four,103-hectare Hope Bay Oro property is three kilometers north of the Doris gold mine-the primary to enter construction at Hope Bay-and adjoining to Agnico ground. Oro hosts the identical rocks, the identical structural surroundings and the identical mineralization trend as Doris, the place gold grades are about 10 g/t Au. A 1,225-meter drill program completed through North Arrow in 2011 confirmed near-floor, high-grade gold mineralization over 300 meters of strike. Ten of the 11 drill holes along the Elu shear hit massive gold grades, including: 7.fifty five meters grading 4.ninety one g/t Au from 38.4m, including four.2 meters grading eight g/t Au;
2 meters grading 20.22 g/t Au from 125m;
4 meters grading 7.04 g/t Au from forty two.6m;
1.forty five meters grading 31.ninety two g/t Au from 43.55m.
buying Hope Bay Oro seems to be a logical bolt-on for Agnico, mainly given the gold miner’s renewed focal point on exploration. selling it might give North Arrow with a non-dilutive source of cash. North Arrow CEO Armstrong is evaluating next steps at the property, including a potential drill program. a pretty FUTURE? The bet on North Arrow is that 60% and even forty% of a diamond mine that produces advantageous fancy diamonds would be price multiples of the present market capitalization. North Arrow has a accomplice-funded course to check if Naujaat hosts an economic diamond deposit sweetened by means of a inhabitants of beneficial fancy orangey-yellow diamonds. The JV accomplice is precise-shelf, with the economic backing to quick-music a mine into creation. A remaining word on tulips and diamonds. contrary to accepted belief, the speculative tulip bubble happened primarily among a small variety of Amsterdam businessmen who had grown filthy rich from maritime trade. The tulip bulb exchange become considered too speculative for the Amsterdam inventory trade, which was well dependent by way of that point. As dazzling as the 1636–37 tulip cost give way become, it did not affect many Dutch citizens and even have ramifications for that small country’s economic system, let alone the realm. This become a gap phenomenon. The enchantment of diamonds, in spite of this, spans the globe. whereas america is still the dominant market, speedy-transforming into and populous international locations akin to China and India are taking their region on the diamond middle stage. Rising tides of prosperity have introduced luxury buyer purchases within reach. Human beings nonetheless love natural beauty. That bodes well for fancy coloured diamonds and the agencies that can carry deposits hosting those stones into production. The exceptional of the Naujaat fancy diamonds, the electricity of the North Arrow and Burgundy groups, and the contemporary rebound in diamond revenue says North Arrow can be closer to that aim than its market capitalization suggests. North Arrow Minerals (NAR-V)fee: 0.11Shares spectacular: 111.68 million (166.4M entirely diluted)Market cap: $12.17 million James Kwantes is the editor of aid alternatives, a subscriber supported junior mining funding book. Kwantes has two many years of journalism event and became the mining reporter at Vancouver sun, the city’s paper of checklist. Disclosure: James Kwantes owns North Arrow shares and turned into compensated by North Arrow Minerals for the writing and distribution of this text. this text is presented for informational functions and isn’t economic guidance. All investors should do their personal due diligence or consult an investment consultant. 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Questions if you happen to have questions concerning the portfolio, please contact the Westphal college of Media Arts & Design at Portfolio assessment Days Meet a representative of Drexel’s Westphal school for a portfolio review and acquire effective feedback prior to submitting your software. We participate in portfolio review days with the country wide Portfolio Day association and Preview: The foreign Portfolio evaluation discussion board. applicants to the following Westphal faculty of Media Arts and Design programs need to put up a writing supplement with their utility. Animation & visual effects structure artwork heritage Dance Design & Merchandising entertainment & Arts management style Design film & television video game Design & production picture Design Interactive Digital Media interior Design images Product Design Screenwriting & Playwriting digital truth & Immersive Media Writing complement theme: Please write a short essay describing why you are interested in pursuing your principal of option at Drexel tuition’s Westphal school. What have you executed that prepares you to analyze to your major of alternative? (optimum 500 words) if you have questions concerning the instructions, please contact the Westphal school of Media Arts & Design through e-mail at candidates to the custom-Designed foremost (CSDN) are required to put up supplemental utility materials and finished an Introductory assembly with CSDN personnel after submitting an admission software. in this virtual introductory meeting, prospective applicants can ask questions about CSDN, talk about their educational desires, and find out about first-year research alternatives available to CSDN students during the big name application. This meeting will additionally evaluation the draft submission and feedback procedure for the CSDN utility materials: the Plan-of-analyze and imaginative and prescient observation. Please notice that the technique for finishing the Plan of analyze and vision statement will take a couple of weeks after your Introductory assembly. evaluation examples of those required substances. functions for transfer applicants are reviewed on a rolling foundation for all phrases. Please verify your software of interest to assess which phrases the software enrolls. Cobalt Miners news For The Month Of February 2021 To make certain this doesn’t take place in the future, please enable Javascript and cookies in your that this occurring to you frequently? Please report it on our remarks discussion board. you probably have an advert-blocker enabled you may be blocked from continuing. Please disable your ad-blocker and refresh. Reference identity:.

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