Naujaat Diamond Project

Naujaat Diamond Project

The world-class Naujaat Diamond Project, located nine kilometers northeast of the hamlet of Naujaat (formerly Repulse Bay), Melville Peninsula, Nunavut, represents the largest undeveloped diamond property in Canada that is currently not under the control of a major mining company. First discovered by BHP in the early 2000s, it was divested as part of BHP’s corporate refocus on iron ore, coal and petroleum operations later that decade. Subsequently, North Arrow Minerals acquired the project in 2013 and its ensuing evaluation focused on the potential value contribution from an exceptional population of uniquely coloured Fancy Vivid Orangey-Yellow stones – a specific and rare colour that has been certified by the Gemological Institute of America. These stones are expected to sell at substantially higher premiums compared to clear diamonds.

The Naujaat Project comprises 10,742 hectares of contiguous mineral leases and claims owned 100 percent by North Arrow Minerals. A total of eight kimberlite pipes have been identified, as well as a number of associated kimberlite dykes, with the Q1-4 kimberlite being the largest and most diamondiferous of these bodies.

In 2020, Burgundy entered into an Option Agreement with North Arrow Minerals over the Naujaat Project. The agreement details included a right to earn a 40 percent interest in the project, in return for funding of $5.6 million Canadian for a preliminary bulk sample of 2,000 tonnes. 

In July 2022, diamond recovery was completed for the 2,000 tonne bulk sample, completed at site in 2021, reconfirming the presence of high-value Fancy Orange and Fancy Yellow diamonds. Burgundy officially earned 40 percent interest in the Naujaat Project in February 2023.

Burgundy has also an optional Letter of Intent with North Arrow Minerals to earn an additional 20 percent undivided interest in the project through a Phase Two Earn-in Option Agreement. The Phase Two Agreement would include a larger bulk sample to establish diamond price to a prefeasibility study level of precision.