Canadian-based exploration company North Arrow Minerals Inc. has intersected kimberlite in the first hole of a drilling program currently underway at the company's Pikoo diamond project, which is located in Saskatchewan, Canada, and consists of 33,374 hectares of contiguous mineral claims. The 2,000-meter drilling program is being funded by North Arrow as part of an option agreement with Stornoway Diamond Corporation, which wholly owns the Renard diamond project in Quebec, under which North Arrow can earn an 80 percent interest in the Pikoo project.

Drilling: Drilling is intended to test a number of kimberlite targets associated with the North Pikoo and South Pikoo kimberlite indicator mineral trains. According to the company, drill hole DDH 13PK-01, testing a target in the North Pikoo area, cut a 0.60-meter hypabyssal kimberlite dyke at 110.7 meters down hole. "This represents the first bedrock occurrence of kimberlite in this area of the Sask Craton, Saskatchewan, and confirms the potential of the Pikoo project to host a new kimberlite field in Canada," says North Arrow. The current program is anticipated to run through the end of this month.

Earn-In Options: North Arrow reports that it retains the right to earn an 80 percent interest in the Pikoo diamond project by completing an option work program consisting of 2,000 meters of diamond drilling including a minimum of two drill holes at each of the North and South Pikoo areas. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80 percent interest in the project, Stornoway has a one-time right to buy back a 20 percent interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work program. Upon earn-in by North Arrow, it and Stornoway will then form a joint venture for the purpose of further exploration of the Pikoo project, and the interests will be 80 percent North Arrow and 20 percent Stornoway, unless Stornoway exercises the Back-In Right, in which case the interests will be 60 percent North Arrow and 40 percent Stornoway.