NNA's Monument Diamond Project Valuation
News Release – March 20, 2019
Monument Project Valuation
As previously announced, New Nadina Explorations Limited is seeking a Partner, either to advance the Monument project going forward or to acquire New Nadina’s interest therein, so that NNA can focus on its wholly-owned Silver Queen polymetallic project in Central British Columbia.
Bruce McKnight, P. Eng., has completed a Fair Market Valuation of the Monument on behalf of the Joint Venture partners: New Nadina Explorations (57.49%); Christopher and Jeanne Jennings (22.11%); and Archon Minerals Limited (20.40%). The purpose of the valuation is to establish a basis for the terms of participation, or sale.
The Monument property has twelve known kimberlites. Drill sampling of the RIP kimberlite in 2007 extracted larger samples where 2,201.7 kg of kimberlite produced 955 diamonds including the largest diamond found to date on the Monument property weighing 0.445 carats. On the DD17 kimberlite, 2,137.6 kg of kimberlite produced 964 diamonds.
Approximately $7 million has been expended on the property by the Monument Joint Venture Partners between 2003 and 2018. A comprehensive review and history of the Monument Project may be viewed at http://www.nadina.com/properties/monument
As stated in the McKnight Report, Fair Market Value means “The highest price available in an open and unrestricted market between informed and prudent parties, acting at arm’s length and under no compulsion to act, expressed in terms of cash”. An alternative definition of Fair Market Value is “the highest price an asset might reasonably be expected to bring if sold by the owner in the normal method applicable to the asset in question in the ordinary course of business in a market not exposed to any undue stress, and composed of willing buyers and sellers dealing at arm’s length and under no compulsion to buy or sell.”
McKnight undertook a three-fold approach for the valuation: Comparable Values ($/hectare); Comparable Values (Attributed share of Market Cap); and Adjusted Appraised Value.
The dollars per hectares approach was based upon selected properties that McKnight thought were comparable to Monument. “The utilization of prior expenditures that have added value to the Property (the Appraised Value method) has been considered by several mineral property valuators to be an acceptable approach to valuing mineral exploration properties. It is also endorsed by the TSX. However, only expenditures that relate to significant and relevant exploration should be included, and the quality of past work itself must be evaluated. “
“Based on the foregoing, it is the opinion of McKnight that the value of the Monument Property of New Nadina was approximately $2,200,000, as at the date hereof, with a relatively wide range of values of between about $2,000,000 and $2,400,000. Such a wide range is not unusual for mineral exploration properties at the stage of development of the Property. New Nadina’s interest would be valued at 60% (rather than 57.49% of the Property value because of its position as operator of the Monument Joint Venture), or about $1,320,000, with a range of about $1,200,000 to $1,440,000
This Opinion of Value may be relied upon by New Nadina and its advisors in their negotiations with potential purchasers, but may not be used or relied upon by any other person without express prior written consent of McKnight, which may not be unreasonably withheld.”
In consultation with its JV Partners, New Nadina has retained Kevin Kivi, P. Eng., and Justin Rocco, P. Geo, to develop an exploration plan going forward that will be included in an application for a new 5-year Land Use Permit. The current LUP expires on September 30, 2019.
New Nadina is focused on developing a new 5-year plan for exploration and development of its wholly-owned Silver Queen Property, located on the Morice River Forest Service road at Owen Lake, between Houston B.C. and the Huckleberry Mine operated by Imperial Metals Inc. As recently announced in a letter to shareholders, Nadina plans an aggressive surface drilling program in 2019, in conjunction with a Mineral Resource Estimate and Preliminary Economic Assessment of the No.3 Vein deposit. The Letter to Shareholder may also be viewed at www.nadina.com/news.
Certain statements in this news release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements reflect management’s current assumptions and expectations regarding future work programs (such as those planned for the Silver Queen Project), results, performance or events as of the date hereof and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results and the estimation of mineral resources and reserves; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, permitting and licensing risks; and general market and mining exploration risks Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.