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Arrowstar Resources Ltd.


See Full National Instrument 43-101 ("NI 43-101") Technical Report

Arrowstar's February 7, 2012 press release officially announced that on October 19, 2011, the TSX Venture Exchange accepted for filing an agreement (the "Port Snettisham Agreement") between Arrowstar Resources Ltd. (formerly Gulfside Minerals) and Pacific Rim Mineral, LLC for an option for Arrowstar to acquire up to a 100% interest in 49 contiguous claims covering 1,012 acres that comprise the Port Snettisham Iron Ore Property. Port Snettisham is located 50km SE of Juneau, Alaska and 30km from the Canadian border to the east.

The Port Snettisham property has had significant historical work indicating it is rich in high grade magnetite and Snettisham ore has been subject to several programs of beneficiation test work including a 1956 US Department of the Interior, Bureau of Mines RI 5195 Report that stated Snettisham has "...a potentially large deposit containing titaniferus magnetite that can be recovered as high grade magnetite concentrate using standard, comparatively low cost methods." The report suggests it is possible to produce an iron ore concentrate containing in excess of 60% Fe with good iron recoveries[1]. See Full Report.

On June 13, 2013, Arrowstar announced that it has filed a preliminary National Instrument 43-101 ("NI 43-101") technical report on the Company's Alaska iron ore project. The report covers preliminary information, historic results of previous work and work undertaken by the Company on this magnetite showing. The report also outlines some of the Company's plans and work programs for the coming months in an effort to eventually produce a NI 43-101 compliant resource estimate.

Highlights of the project include:
  • Gulfside and Pacific Rim agreement for option to acquire 100% interest in Port Snettisham, Alaska, Magnetite Iron Ore Deposit.
  • Aggregate consideration for 100% interest is $3,770,000 plus 2.5% NSR royalty.
  • Significant exploration including geophysics and 11 hole drill program, metallurgy and benefication work completed by previous explorers.
  • 64.5% Fe pellet feed fines produced with 0.01% S and 0.04% P.
  • Deposit appears suitable for fines, pellet feed or iron ore pellet production.
  • The property has deep ocean water for port access.
In 1969, Marcona Corporation optioned the iron ore deposit and carried out extensive exploration including diamond drilling and metallurgical tests. Although there has been no independent qualified person verification and no NI 43-101 compliant report prepared, it was reported in the Toyko Press (Nihon Keizai, April 14, 1969) that Marcona Corporation and the Marubeni Company of Japan, had developed plans to pellitize two to four million tons of iron ore annually.

In 1970, Marcona completed a feasibility study on the deposit and announced plans to put the deposit into production at a rate of 5 million tons of concentrate per year over a 50 year mine life. (State of Alaska, Dept. of Natural Resources, Division of Mines & Geology, Mines Bulletin, February 1970). In recent years however, iron ore prices have soared. As at May 21, 2013, the Spot Price for 62% Fe iron ore was $129.25 per tonne (FIS Iron Ore Swap Report, 01 October 2013).

SNETTISHAM IRON ORE - A BRIEF HISTORY

The Company is currently executing an exploration plan that includes the following operations:

  • Reconnaissance of the historical data and grid soil and rock chip sampling with an XRF gun and magnetic susceptibility meter.
  • An outcrop and trenching sampling study using a magnometer to correlate Fe with magnetic susceptibility. Mineralogy and petrology studies will also be conducted to analyze the presence of the titanium and vanadium mineralization in the magnetite and the extent of silica, sulphur, phosphorous and alkalis. On July 3, 2012, Arrowstar announced excellent Snettisham sample test results.
  • A ground based IP magnetic and gravity study to identify key changes in mineralogy and the extent of mineralization. No gravity surveys have been completed to date and this will be completed prior to a drilling phase.
  • A Diamond Drilling Program directed by the results of the above two studies that will allow suitable targets to be identified so that a Resource Estimate can be produced followed by a Feasibility Study.
  • A benefication study using samples to ensure the results are statistically significant and the proposed benefication process design is proven at pilot plant size. Given the high cost of crushing to 100 mesh this stage is particularly important to the success of the project.
  • The tenement is conveniently located on the Pacific Coast, close to the capital of Alaska, Juneau, and a major bulk commodity port at Skagway, Alaska. There is a major shipping route from Alaska to Japan, Korea and China, and at a distance of 7,870 km, is much shorter than the route from Brazil to China which is 11,000 km.

On January 16, 2013, Arrowstar announced that it has staked an additional 21 claims adjacent to and continuous with its Port Snettisham, Alaska iron ore claim block (49 claims). The additional 21 claims adjoin the present claim block to the east and south in an area potentially extending an area of magnetic highs indicated during the Company's geophysical surveys conducted this past summer. The new claim block expands the Company's project area by about 43%.

The magnetite-bearing diorite-hornblendite-pyroxenite intrusive occupies a land area of approximately 390 acres along the northeast shore of the Snettisham Peninsula. It appears the magnetite formed during a pegmatite alteration phase.



[1]Thorne R L, Wells R. R. - Studies of the Snettisham Magnetite Deposit, South Eastern Alaska United States Department of the Interior February 1956.

Photos


Picture of the tenement from North to South. The second inlet (where the old pier is) is where gold mining was conducted in 1908.

The beach area to the south of the tenement, where magnetite bearing pyroxene outcrop forms a black band at the forest level.


The magnetite bearing pyroxene mineralisation is highly magnetic and extends for 2000m along the foreshore.

The amount of outcrop along the shoreline is quite significant and probably continues out to sea.


The size of the pyroxene/magnetite bearing boulders is very large, weighing up to 10 tonnes each.

In parts of the outcrop, large boulders of aplite (white mineral - feldspar and quartz) appears with crystalline magnetite and apatite (green mineral - found often with magnetite (eg. Kiruna)


Seaplane is the easiest way to access the property from Juneau.

A rare example of crystallised magnetite in the Pyroxenite.


To the north the diorite host rock contacts with a metamorphosed phyllite, and the magnetic field from the magnetite stops.

View of the magnetite/pyroxenite at low water tide.


A large block of highly magnetic magnetite outcrop on the foreshore.

This outcrop of diorite/pyroxenite with a quartz/aplite vein was located about 200 metres inshore.


A large piece of aplite (quartz feldspar) with a magnetite inclusion. The KT-10 Plus magnetic susceptibility meter is in the lower foreground.

The forest is reasonably dense close to the shoreline, but thins out further as you ascend to 1500 feet above sea level.


Phil Thomas, Director and VP Exploration

Shipping lanes are very open and deep - ideal for Panama vessels to transport iron ore.