Tag Archives: Gren Thomas

Interview: Gren Thomas, the man with the golden hand

by James Kwantes
Editor, Resource Opportunities

October 26, 2018
It’s 1:15 p.m. on a sunny Friday afternoon in Vancouver and I arrive a little early for a downtown meeting with Westhaven Ventures (WHN-V) chairman Gren Thomas. A short elevator ride at Granville and West Hastings takes me to Westhaven’s modest offices on the 10th floor, where I let myself in and drop by CFO Shaun Pollard’s office.

Inside, Pollard and veteran geologist Ed Balon — Westhaven’s technical director — are talking rocks and stocks. Westhaven shares rose 36% on the day to an all-time high close of 94 cents. Teamwork: Balon was key to identifying the Spences Bridge epithermal gold belt, which hosts Shovelnose, outside of Merritt, and Westhaven’s other projects: Prospect Valley, Skoonka and Skoonka North. Pollard runs a tight treasury ship in a sector with its share of (adrift) lifestyle companies.

And it’s at Shovelnose where a high-grade intercept of 17.77 metres of 24.50 g/t gold in hole 14 sent Westhaven shares — which traded between one and three nickels for years until this spring — rocketing from 37 cents to 81 cents on Oct. 16. This is a junior mining market where momentum flows to companies that can hit rich intercepts of high-grade gold. Westhaven has become one of them.

Visible gold in hole 14, from the South Zone at Westhaven’s Shovelnose project

Gren arrives at the office. The soft-spoken mine finder made his reputation and fortune when his Aber Resources discovered Diavik, Canada’s second diamond mine. But these days, it’s mostly gold on his mind.

He comments with a chuckle that he’d had a nap earlier in the day and been surprised when he awoke to see the large stock increase. Making a few million dollars while he slumbers … that’s the new normal for Thomas, who owns (directly and indirectly) almost 30% of Westhaven’s shares. But it’s not like he’s sitting around counting his winnings — the veteran prospector was uncertain and low-balled his stake in the company when asked about it.

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The Westhaven surge is a reversal of fortune for Thomas, who got his share position by bankrolling the company, keeping it afloat through years of struggle and shoestring budgets. Thomas is Westhaven’s chairman and his son Gareth runs the company as president and CEO. Gareth, who was out of the office for interviews, owns 3.3 million shares, a 4.2% stake.

“What are we going to do with all this paper, paper the walls?” Gren says, recalling earlier days of backstopping the operation.

He fills me in on the small, persistent band of believers who were convinced there was high-grade gold at Shovelnose. Central to early-stage exploration was Balon, who discovered Skoonka and found a boulder at Shovelnose in the mid-2000s that ran 100 g/t gold. That was while both projects were still in Strongbow Exploration (SBW-V), where Thomas is also chairman. A 50-metre intercept of 0.5 g/t gold provided further encouragement.

Shaun Pollard, Westhaven CFO (left to right), technical director Ed Balon and CEO Gareth Thomas, atop Shovelnose.

“There were a lot of small programs, but frustrating. We would go back every year thinking we would find more the next year. But we were basically prospecting with a drill. There is lots of cover there, right.”

“We were talking to major companies and they were not remotely interested.”

Westhaven chairman Gren Thomas

The majors are interested now, and so are plenty of others. Gren’s cellphone rings in the pocket of his jacket, which is draped over a chair. He apologizes for pausing the interview and walks over to take the call. It’s Peter Brown, the Canaccord cofounder and Howe Street legend — and Westhaven shareholder. Brown, too, is eager to know when assays for hole 15 will arrive (anytime) and when the next drilling starts (early November).

Hole 14 was the intercept that lit a fire under Westhaven shares. Hole 15, 100 metres southeast of 14, hit a 20-metre quartz vein and contains visible gold. Assays are pending and could land at any time. The core for hole 14 contains ginguro bands, a distinctive black sulphide that is sprinkled with visible gold. The latest core looks very similar to the mineralization at Hishikari (Sumitomo), a Japanese gold mine with some of the world’s highest grades, at 40 g/t gold. Exploration manager Peter Fischl also sees parallels to Kupol (Kinross), a large high-grade mine in Russia’s Far East. Both Hishikari and Kupol are world-class epithermal gold deposits. Shovelnose is a speculative, earlier-stage project, but the potential is tantalizing.

A turning point, Gren relates, was when exploration manager Peter Fischl — attempting to zero in on the “heat zone” — targeted a valley with a creek that hosted heavy clay alteration. Hole SN17-06 intersected 85 metres of 0.52 g/t Au. Higher-grade intercepts followed earlier this year, including 17.7 metres of 3.9 g/t Au.

“We still couldn’t get any interest. We’ve got the boulders, we’ve got the showings, we’ve got these intersections — there’s a lot of gold here.”

“One company even went so far as to say, ‘There are no mines here. Why are there no mines?’ ”

“Well, because nobody has found one yet,” Gren says with a laugh.

Westhaven Ventures (WHN-V)
Price: 0.94
Shares outstanding: 85 million (92 fully diluted)
Market cap: $80 million

There are also new developments in the other two companies where Gren is chairman: Strongbow Exploration (SBW-V) and North Arrow Minerals (NAR-V). He is preparing to fly to the U.K. with Strongbow CEO Richard Williams to work on fundraising and an AIM listing for Strongbow, which is developing the high-grade South Crofty tin project in Cornwall. An Oct. 17 deal with Orion Mine Finance should help on that front — the well-known mining group agreed to finance Strongbow to the tune of US$3 million in conjunction with the AIM listing, which is expected before the end of the year. Thomas owns 5.133 million Strongbow shares, a nearly 6% stake.

There are large pools of capital in London for U.K. mining projects, which Williams and Thomas plan to tap into. There is also renewed interest in Cornwall and tin mining thanks to a popular British television series called Poldark. One participant in a recent tourist walking tour of Cornwall turned out to be a fund manager who was interested in Strongbow and South Crofty.

Strongbow is the “mother ship” of Gren’s three companies: diamond play North Arrow Minerals was spun out of Strongbow in 2007 and Westhaven optioned its Spences Bridge gold belt properties from the company. The deals for Shovelnose and Skoonka have left Strongbow with a 2% royalty on Shovelnose as well as 3.1 million Westhaven shares. Those shares are now worth almost $3 million — a not-insignificant total for a company with a market capitalization of about $14 million. “It’s funny how things morph,” Thomas remarks of Strongbow’s pivot from gold to tin.

Strongbow has a mining permit that is valid until 2017 and the company is currently building a dewatering plant to treat water from the old mine workings. The project was financed by the $7.17-million sale of a 1.5% NSR to major shareholder Osisko Gold Royalties, which owns a 27.5% stake.

Strongbow Exploration (SBW-V)
Price: 0.16
Shares outstanding: 86.6 million (127.4M fully diluted)
Market cap: $13.9 million

As for North Arrow Minerals, the diamond play is awaiting microdiamond and till sample results from Mel in Nunavut, where it discovered the diamondiferous ML-8 kimberlite last year. This season North Arrow drilled a new kimberlite (ML345), expanded on ML-8 and collected 224 kg of kimberlite for microdiamond analysis.

Cut and polished fancy yellow-orangey diamond from Naujaat.

One of the main focuses of North Arrow CEO Ken Armstrong is getting a road permitted from the town of Naujaat to the Q1-4 kimberlite, which hosts a population of valuable yellow-orangey diamonds.

Completion of a road would dramatically cut the costs of collecting a large bulk sample to get a better sense of diamond values at the 12.5-hectare kimberlite, which is near tidewater. A road to the community, which is very supportive of the idea, would also potentially allow the construction of a small test mill in Naujaat.

“A major should take this on, because they take a longer-term view of it,” Gren says of Naujaat. “It’s the perfect place for a mine, near the coast.” He owns more than 10.5 million North Arrow shares, an 11.5% stake.

North Arrow Minerals (NAR-V)
Price: 0.14
Shares outstanding: 92.8 million (128.9M fully diluted)
Market cap: $13 million

“We’re quite confident that we’re doing the right things,” Thomas says of progress at Strongbow and North Arrow. “We just wish the markets would show more interest.”

That’s no longer a problem at Westhaven, with shares sitting just shy of a dollar as investors anticipate assays for hole 15. Warrant exercises have topped up the treasury, which sits north of $1.5 million. That’s enough for the next drill program, which is imminent, and it removes the need to finance under a dollar — something Gren is loathe to do.

While Westhaven’s fortunes have changed, its corporate culture will not, Gren pledges. “Gareth and I were talking about it, and I told him – ‘We under-promise and over-deliver.’ So no bullshit. It’s funner and you get a lot fewer phone calls from angry shareholders.”

There aren’t many of those these days, and Westhaven’s share structure all but ensures higher prices IF the company can keep hitting high-grade gold. Management own about 40% of shares, the Plethora Precious Metals Fund owns 16% and friends and family (including Gren’s daughter Eira Thomas) own another 10-15%. Those high ownership levels keep the supply of shares low during a period of rising demand for the stock.

Related reading: West Vancouver diamond pioneer Gren Thomas still in hunt for gems, Vancouver Sun

Disclosure: James Kwantes owns shares of Westhaven Ventures, Strongbow Exploration and North Arrow Minerals and covers each company in his newsletter, Resource Opportunities. North Arrow is a sponsor of the newsletter. This article is for informational purposes only and should not be considered financial advice. All investors need to do their own due diligence.

Diamonds Q&A: North Arrow Minerals CEO Ken Armstrong

By James Kwantes
Resource Opportunities

North Arrow Minerals is 1 of 3 Resource Opportunities sponsor companies.

Vancouver-based North Arrow Minerals is one of the more active diamond exploration companies globally, with a portfolio of projects focused on Canada. Its most advanced-stage project is the large Naujaat deposit in Nunavut, which has a resource and hosts a population of valuable fancy orange yellow diamonds.

But this season’s focus is on exploration drilling at the Mel and Loki projects in Nunavut and the Northwest Territories, respectively. Mel was a grassroots diamond discovery that North Arrow announced late last year. The company traced kimberlite indicator mineral (KIM) trains up-ice and made a prospecting discovery of kimberlite, from which 23 microdiamonds were recovered from a 62.1-kg sample. The first drilling program on the property is planned for this summer.

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The Loki project is in the Lac de Gras diamond field that hosts the Diavik and Ekati mines. The focus there is EG05, a kimberlite that Rio Tinto discovered, and 465, a kimberlite discovered by North Arrow in the spring. The latter was the first kimberlite discovery in Lac de Gras in the past 5 years. It’s familiar terrain for the North Arrow team, including chairman Gren Thomas whose Aber Resources discovered the Diavik diamond mine.

North Arrow CEO Ken Armstrong

Rough diamond prices are now at a 52-week high and demand for polished diamonds is strong in China, India and the U.S., according to New York-based diamond analyst Paul Zimnisky. On the production side, pending mine closures including Argyle and Victor will put pressure on supply, with few new operations coming online.

The improving picture follows a choppy 2017 that saw high inventory levels at De Beers and Alrosa and flat rough diamond prices. North Arrow shares have been under pressure along with shares of new Canadian producers Stornoway Diamonds and Mountain Province Diamonds, which declined 41% and 18% respectively over the past year as startup problems weighed.

On Monday North Arrow announced a $3-million private placement consisting of flow-through shares at 20 cents and non-flow-through units (one share, one 2-year 30-cent warrant) at 17 cents. We caught up with CEO Ken Armstrong, who was in Calgary for the TakeStock! investor forum, to find out more about plans and how the money will be used.

Q: What is the breakdown on how the $3-million financing will be spent?

A: We’ve allocated $2 million for Mel drilling – testing the 2017 kimberlite discovery and new targets. That number includes microdiamond processing costs. We will also complete microdiamond processing of the EG05 and 465 kimberlites at the Loki project that were drilled in March, as well as some final microdiamond processing from the 2017 drilling of Naujaat. That’ll be a couple hundred grand. We are also looking at getting a remaining top target drilled at Loki, target 853. Ideally we’d tie that onto ongoing drilling at our LDG JV property, which is operated and funded by partner Dominion Diamond. We’d retain a half million or so for G&A.

Q: Any big names buying into the financing? How much will insiders and management participate for?

A: Insiders are committed to taking at least $1.5 million, so half, with most of that being directors/management. Gren Thomas, our chairman, and Eira Thomas, a North Arrow advisor, will both participate. I will also participate.

Q: How did you determine the pricing of the financing?

A: We tried to price it to make the non flow-through unit and flow-through share components equally attractive. On the Unit we put a fairly quick threshold on the accelerator, at 40 cents, however we felt it was justified by pricing it a discount to market with a full warrant, rather than a half-warrant. The flow through is essentially priced at market with the intent to fill the orderbook efficiently. We are looking at immediate use of funds with Mel drilling in July, Loki drilling in July or August and with more diamond results from Loki, Naujaat, and in September or October, from Mel. This is all news flow that will occur before the four-month hold comes off the financing shares which is, we think, a positive feature of the placement. We have been the most active Canadian junior in terms of new kimberlite discoveries in Canada and are poised for more discovery, potentially on up to three projects, over the four months.

The esker location at Mel where North Arrow’s drill camp is being set up.

Q: Which of the three active projects that you’re raising money for is the most likely catalyst — Loki, Mel or Naujaat?

A: All three have potential catalysts. Folks seem to be most interested in new discoveries and Mel certainly fits that bill — it’s a brand new kimberlite discovery made by prospecting last fall. The kimberlite contains some very coarse mantle minerals and we see hints of that coarseness in the initial diamond results, which is positive. Having already found kimberlite and diamonds actually de-risks the initial drilling significantly. We know we will hit kimberlite with diamonds, it’s more a question of how many and how big they are.

Based on the spread of indicator minerals there are certainly multiple sources with some nice, sizable magnetic targets. This is a brand new kimberlite field and the first kimberlite discovered is significantly diamondiferous. It doesn’t happen too often, so we are keen to get drilling. We’re currently mobilizing a camp and drill to the property now with drilling planned for July.

At Loki we also have a new discovery and are waiting on microdiamond results. In early April we announced the discovery of the 465 kimberlite – the first kimberlite discovery made in the Lac de Gras area in over 5 years. There are also pending microdiamond results from the EG05 kimberlite which was also drilled during the spring 2018 program. We also have a number of targets that we’d like to drill test, including target 853, which we’d like to see drilled this summer.

Q: It’s been almost three years since the disappointing Naujaat diamond valuation. Does Naujaat remain North Arrow’s flagship project and what is happening with the project?

A: Naujaat remains North Arrow’s most advanced project. We’re still interested because it’s a significant diamond inventory in a large tonnage deposit (as far as Canadian diamond deposits go) sitting on tidewater near a community. Our work on the Q1-4 diamonds has clearly shown the deposit contains high-value fancy orange yellow diamonds and, overall, is under evaluated. Last summer we completed more drilling to confirm the size potential of the kimberlite down to 300 metres below surface and we had three different holes extend over 100 metres beyond the geological model, with two of those holes ending in kimberlite. It’s a big body. We also collected a 210-tonne sample that confirmed the presence of the coloured diamond population in the A88 phase of the kimberlite. This is a totally different unit than was sampled in 2014 – the 2017 sample pit was over 400 metres away for the 2014 pits – and the proportion of coloured stones is very similar to the 2014 result. The work we’ve done with the diamonds themselves has shown that the coloured stones are a distinct population from the non-coloured stones. The two populations are completely different ages and the yellow population has a markedly coarser distribution than the non coloured stones.

The photos of the diamonds we had polished and certified at the GIA show how beautiful this colour is and highlight the potential value upside in these diamonds. But it is actually the potential for a coarse size distribution that may be even more important in terms of potential upside to the value contribution of the coloured diamonds. And the only way to confirm or disprove the potential value upside is a larger bulk sample.

A cut-and-polished fancy intense orangey yellow diamond from North Arrow’s Naujaat project.

To that end we have hired consultants and been working closely with the community of Naujaat to look at developing a road to the deposit. We’ve also started looking at processing options for a larger sample and how that might look, all with an eye to better pinning down the budget options for collecting a sample of sufficient size to get that answer. Being so close to the community really presents opportunities for reduced costs – we’ve seen that with our exploration programs and we need to make sure we take full advantage of all potential cost savings.

Of course all this takes time, but that is why we have North Arrow evaluating a number of quality projects, not just one. It allows the team to focus on well-informed, cost-effective exploration even if that might mean slower news flow from a particular project. There will be steady news flow from other projects as each cycles through the process.

Q: Along the lines of quiet projects, what is the status of the Lac de Gras joint venture with operator Dominion Diamond Corp.?

A: The LDG JV is having an active year. It has definitely been one of our quieter projects as our partner Dominion spent a lot of effort defining targets through a series of overburden drilling and geophysics programs. Late last year, Dominion also went through a well-documented takeover by the Washington Group of Companies, with the resulting transitions that often accompany such changes. However, a very positive outcome for the LDG joint venture has been Dominion’s renewed commitment to exploration, and, as I understand it, the 2018 LDG JV budget was one of the first budgets approved by the new ownership. The focus of the 2018 program is exploration and discovery-type drilling and we expect that work to pick up again during the summer. North Arrow elected not to finance its share of the current program so we could focus our resources drilling our 100% owned projects at Mel and Loki. However, although we are taking dilution of our joint venture interest, if a Lac de Gras-type discovery is made North Arrow will still maintain a significant interest, north of 25%, in the joint venture.

Q: With Eira recently taking over as CEO of Lucara Diamond Corp., how involved does she remain with North Arrow?

A: Eira’s involvement with North Arrow has been key since we began our focus on the Canadian diamond space. She remains an important advisor and sounding board for management – and the board – as we strategize on how best to move the project portfolio forward.

Disclosure: North Arrow Minerals is one of three Resource Opportunities sponsor companies and James Kwantes owns North Arrow shares. Readers are advised that this article is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. The information is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data.

Copyright​: This publication may not be reproduced in whole or in part, in any form, without the express permission of the publisher. Permission is given to extract parts of the report for inclusion or review in other publications only if credit is given, including the name and address of the publisher.

Hunting for rough in a storied diamond field

By James Kwantes
Resource Opportunities

North Arrow Minerals is one of three Resource Opportunities sponsors and Lucara Diamond and North Arrow are portfolio companies.

Canada punches above its weight in the world of diamonds – way above. Consider: the country is home to about 36 million people, or less than half of one percent of the world’s population. Yet in 2017, Canada produced 14% of the world’s diamonds by value, behind only Russia and Botswana.

The epicenter of Canadian diamond production lies in the frozen tundra of Canada’s North – the “Barren Lands,” in author Kevin Krajick’s words. Specifically, the Lac de Gras region, 300 kilometres northeast of Yellowknife, the Northwest Territories’ capital city. That’s where prospectors Chuck Fipke and Stu Blusson discovered the kimberlite indicator minerals that let to Dia Met’s 1991 diamond discovery. When Ekati went into production in 1998, it marked the birth of what has become an important northern industry.

The discovery of the Diavik diamond mine by Gren Thomas’s Aber Resources in 1994 established that the Ekati find was no fluke. Diavik went into production in 2003 and quickly became one of the world’s richest diamond mines. The discovery of diamonds in this inhospitable corner of the world, surrounded by only frozen lakes and tundra, is a testament to the ingenuity and perseverance of Canada’s diamond pioneers.

Two decades later, the Ekati and Diavik diamond mines are still churning out carats – and cash. More than $20 billion worth of diamonds has been mined at the two operations. The prized profit centers didn’t escape the notice of the Washington Group, a private conglomerate founded by US billionaire Dennis Washington. Last year the Washington Group paid about US$1.2 billion to snap up Dominion Diamond Corp., owner of a controlling 90% interest in Ekati and a 40% stake in Diavik (operator Rio Tinto owns 60%).

Aerial photo of the Diavik diamond mine, 60% owned by operator Rio Tinto and 40% owned by Dominion Diamonds.

CANADA’S GROUND ZERO FOR DIAMONDS

And the Lac de Gras region remains a hub of activity for diamond production and exploration, well beyond Ekati and Diavik. The newest mine is Gahcho Kue, which began commercial production in March 2017 and is 51% owned by De Beers and 49% by Mountain Province Diamonds (MPV-T).

North Arrow Minerals (NAR-V), Canada’s most active diamond exploreco, is also zeroing in on Lac de Gras. The company has two projects in the region and both of them will see drilling this spring. The Loki project covers 8,600 hectares and is close to both Ekati (33 km away) and Diavik (24 km). North Arrow will drill about 1,000 metres on up to six targets in March.

Loki is a good example of a junior company benefiting from millions of dollars spent by a major while big money flowed into exploration. One of the six Loki targets is EG05, a diamondiferous kimberlite that Rio Tinto (Kennecott) discovered but never followed up on. The other targets were identified through airborne geophysics and electromagnetic surveys. At each target, pyrope garnets and other kimberlite indicator minerals have been recovered, but no source has been found.

At Dominion’s Lac de Gras (LDG) joint venture with North Arrow, operator Dominion is ramping up for 2018 exploration, including spring drilling. Dominion has an approximate 67% interest in LDG, with North Arrow retaining 33%. The LDG JV covers a vast 125,000-hectare property to the south of the Ekati and Diavik mines and immediately east of Loki.

The “privatization” of Dominion Diamond Corp. translates into fewer eyes on the company, particularly its exploration initiatives. But Patrick Evans, Dominion’s CEO – appointed after the takeover – is well-known in the diamond world. Evans is the former president and CEO of both producer Mountain Province Diamonds (MPV-T) and explorer Kennady Diamonds (which was recently taken over by Mountain Province for $176 million).

DRIVE FOR DISCOVERY

Evans’ exploration background – and his assertion that new diamond discoveries are critical to the viability of the Canadian diamond industry – will likely ensure that exploration remains a key focus for Dominion. In a 2016 talk at the annual Roundup Mineral Exploration conference in Vancouver, Evans lamented the “paltry” amount being spent on diamond exploration in Canada. The dearth of exploration threatens Canada’s No. 3 position as a world diamond player, Evans said at the time.

Loki and the LDG joint venture represent North Arrow’s most imminent potential catalysts. But North Arrow continues to advance its flagship Naujaat coloured diamond project in Nunavut, which has a population of rare, valuable fancy yellow diamonds.

On Wednesday the company announced it had recovered 64.25 carats from a 209.8-tonne mini bulk sample collected last year from three phases of the large Q1-4 kimberlite. The proportion of the more valuable yellow diamonds was consistent with an earlier bulk sample – 10.7% of the total by stone count and 21.2% by carat weight.

“It’s encouraging, because it confirms the yellow diamond population exists in different phases of the kimberlite,” said North Arrow CEO Ken Armstrong, noting that the results merit further work. “The size of the prize is large.”

The next step, Armstrong says, is a large bulk sample at Naujaat – perhaps as large as 5,000 to 10,000 tonnes. A sample of that size would answer remaining questions about the value of the diamonds and size-frequency distribution of the yellow stones, he said. It would also carry a large price tag: perhaps between $20 million and $30 million. Securing a joint venture partner would allow North Arrow to undertake the bulk sample without blowing out the share structure, Armstrong pointed out.

Fancy yellows and orangey-yellow diamonds from an earlier sample at North Arrow’s Naujaat.

The diamond sector has faced some ups and downs in recent years, but mostly downs. One of the main issues has been large inventories held by industry heavyweights Alrosa and De Beers, which has suppressed rough diamond prices. There have been some high-profile scandals in the sector, too – Indian diamond magnate Nirav Modi fled India earlier this year and is currently being investigated for alleged bank fraud and money laundering.

However, the macro picture is improving, according to New York diamond analyst Paul Zimnisky. Inventory levels for both De Beers and Alrosa are at estimated three-year lows and demand remains healthy, according to Zimnisky’s latest State of the Diamond Market report. On the supply side, no new mines are coming onstream in 2018 and Alrosa’s production is forecast to decrease this year.

For a sector that has struggled – and been bypassed by many retail investors – there’s a lot going on. The takeover of Dominion Diamond by a private group was a surprise to many; less so the purchase of Kennady Diamonds by Mountain Province, which had earlier spun out the exploreco. There are new and rejuvenated exploration plays, including Bruce Counts’s newly listed Lithoquest Diamonds (LDI-V) with its North Kimberley project in Australia. In the Northwest Territories, GGL Resources (GGL-V) has revamped with the appointment of 25-year diamond veteran David Kelsch as CEO and an injection of capital from project generator Strategic Metals.

ENTER EIRA

But for diamond sector investors, perhaps the most interesting moves were made by Lucara Diamond Corp. (LUC-T) on February 25. Diamond veteran Eira Thomas was named Lucara’s CEO and the Vancouver-based company announced a blockchain initiative that could improve transparency and efficiencies in the sale of diamonds in the one to 15-carat range, and eventually for smaller stones as well. Blockchain will not be used to sell the larger diamonds that have established Lucara’s reputation and bolstered its treasury – stones such as the 1,109-carat Lesedi La Rona and 813-carat Constellation.

Eira’s most recent CEO gig was with Kaminak Gold, which was sold for $520 million to Goldcorp in 2016. Before that, Eira – the daughter of North Arrow chairman Gren Thomas – cofounded Stornoway Diamond Corp. (SWY-T) and Lucara. Her partner on both initiatives was Catherine McLeod-Seltzer, who is joining Lucara’s board of directors. The appointments mark a kind of reunion for Lucara’s three co-founders – Thomas, McLeod-Seltzer and Lukas Lundin.

Lucara Diamond CEO and North Arrow advisor Eira Thomas

But before Stornoway, Lucara or Kaminak was Aber Resources. Hired as an Aber field geologist straight out of university, Eira was thrust into a lead role when a senior geologist left for another company. In the spring of 1994, the geologist and her exploration team raced the spring melt and drilled one final hole from a floating ice platform. The core had a 2-carat diamond embedded in it, and the rest is history. She later became VP Exploration for Aber, Dominion Diamond’s predecessor company.

Eira’s appointment as Lucara CEO strengthens already solid connections between Lucara and North Arrow. She remains a North Arrow advisor and large shareholder, and was critical in landing $2-million investments from both Ross Beaty and the Electrum Strategic Opportunities Fund L.P., which is funding North Arrow’s current programs. There’s a brother connection between the two companies, too – North Arrow CEO Ken Armstrong’s brother John is Lucara’s vice-president, mineral resources. His specialty is the assessment and analysis of diamond size and value distribution as well as deposit modelling. John Armstrong’s partner Allison Rippin Armstrong, a corporate social responsibility specialist, is an advisor to North Arrow.

As for Eira, her association to North Arrow’s flagship Naujaat project runs deep. It was Thomas who secured the Naujaat project (formerly called Qilalugaq) from Stornoway Diamonds and brought it to North Arrow, after stepping down as Stornoway’s executive chairman. The Naujaat, Pikoo and Timiskaming projects were optioned from Stornoway on a JV basis, with North Arrow subsequently buying out Stornoway’s stakes to secure 100% interests in Naujaat and Pikoo.

Collecting the mini-bulk sample at North Arrow’s Naujaat project in Nunavut.

Assays are pending for 2,440 metres of kimberlite core drilled at Naujaat last fall. Further drilling later this spring will conclude the program at the 12.5-hectare kimberlite, the largest in the Eastern Arctic. Naujaat has an Inferred mineral resource of 26.1 million carats from 48.8 million tonnes grading 53.6 carats per hundred tonnes, from surface to 205 metres depth. Fall drilling established that Q1-4 remains open at depth and has a surface area of at least five hectares 305 metres below surface.

Further north, there are also drill plans at Mel, North Arrow’s second grassroots discovery of a diamondiferous kimberlite field in Canada (Pikoo was the first). In October, North Arrow announced the recovery of 23 diamonds larger than the .106-mm sieve size from a 62.1-kilogram sample at the ML-8 kimberlite. The diamond body was discovered through the systematic tracking of a kimberlite indicator mineral (KIM) train to its up-ice termination. North Arrow has subsequently increased its Mel land position to 56,000 hectares through staking. Driling will focus on ML-8 as well as other targets at the heads of three well-defined KIM trains.

Disclosure: North Arrow Minerals is one of three company sponsors of Resource Opportunities and James Kwantes owns North Arrow and Lucara shares, which makes him biased. Readers are advised that this article is solely for information purposes. Readers are encouraged to always conduct their own research and due diligence, and/or obtain professional investment advice. Dollar and $ refer to Canadian dollars, unless otherwise stated.