Burgundy Diamond Mines : Announces Initial Naujaat Bulk Sample Results

Burgundy Diamond Mines Limited ASX: BDM

www.burgundy-diamonds.com

Level 25, 108 St George's Terrace, Perth WA 6000

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ABN: 33 160 017 390

ASX Announcement

Burgundy announces initial Naujaat bulk sample results

27 April 2022

Highlights

• • Diamond recovery complete for 70% of the 2021 bulk sample at the Naujaat Diamond Project

• • Results confirm the presence of a significant population of Fancy Orange and Yellow diamonds

• • Further analysis required to fully understand the implications of these encouraging results

Burgundy Diamond Mines Limited (ASX: BDM) ("Burgundy" or "the Company") is pleased to report initial diamond recoveries from the first 70% (1,316 tonnes) of a bulk sample collected in 2021 from the Q1-4 diamond deposit at the Naujaat Diamond Project, Nunavut, Canada, completed by partner North Arrow Minerals Ltd (TSX: NAR, "North Arrow").The remaining 30% of the sample will be processed in the coming weeks, with the extended timing due to earlier success in collecting a larger bulk sample than had originally been planned.

Key Results

• • 268 diamonds greater than +9 DTC (Diamond Trading Company) sieve weighing 117.98 carats were recovered from 1,316 dry tonnes of kimberlite from the A28 unit - the average size of diamonds retained on the +9 DTC sieve is ~0.21 carats

• • The three largest recovered diamonds are 3.31, 3.07 and 2.76 carats respectively

• • 48 of the 268 diamonds (17.9%) classify as Fancy Colour (20.9% by carat weight) - indicative of a desirable and potentially high value diamond population

• • 58% of the Fancy Colour diamonds classify as either Fancy Intense or Fancy Vivid - the two highest colour saturation classes and an important indicator of potential value in Fancy Colour diamonds

• • 91% of the Fancy Colour diamonds classify with orange as the primary colour - orange is considered amongst the rarest colours for natural diamonds

• • +9 DTC sample grade of 9.0 cpht (carats per hundred tonnes) compares favourably with a similar sized sampled collected from the same geological unit in 2014

• • Processing of the remainder of the 2021 bulk sample, collected from the A88 unit, is ongoing.

Preliminary Conclusions

The purpose of the 2021 sample is to acquire further information on the coarser sizes of the Q1-4 diamond population, with particular emphasis on potential high value Fancy Colour diamonds. The results from this first 70% of the sample provide additional information that extends the results obtained from previous bulk sampling in 2014 and 2017. Further analysis of these results is required to understand the potential implications, and this will be announced once complete.

On completion of the bulk sampling program, Burgundy will assume 40% ownership of the Naujaat Project under the terms of an earn-in option agreement with North Arrow Minerals announced on 2 June 2020.

Peter Ravenscroft, Managing Director and CEO of Burgundy, commented, "These initial results from the 2021 bulk sample add significant confidence to past results and confirm the presence of a potentially high value, Fancy Orange and Yellow diamond population in the Q1-4 kimberlite. Once further analysis has been completed, we will be able to determine how the Naujaat Project will complement our strategy of becoming a vertically integrated, end-to-end diamond company focused on Fancy Colour diamonds."

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Ken Armstrong, President and CEO of North Arrow Minerals Ltd, said: "The significant proportion of Fancy Colour diamonds recovered so far from the 2021 bulk sample will provide important information needed to complete ongoing modelling of the size distributions of Fancy Colour diamonds in the Q1-4 deposit. We look forward to working with our partner Burgundy in completing this analysis, including an update of the average diamond price estimate in due course".

Sample Collection and Diamond Recovery

Full technical details are given in the accompanying JORC Table 1, with summary information given below.

The 2021 bulk sample consists of 2,500 sample bags collected from three sample pits (Pits B, D, & E) at the multiphase Q1-4 kimberlite, located just seven kilometres from the project laydown near the Hamlet of Naujaat (Figure 1). The sample was divided into five subsamples for processing purposes, including four subsamples reported today: Pit B weathered kimberlite (296 bags), Pit D weathered kimberlite (445 bags), Pit B rock (325 bags) and Pit D rock (733 bags). All four subsamples are from the A28 unit of Q1-4. Processing of the fifth and final subsample, collected from the A88 unit (Pit E, 701 bags, approximately 280m southwest of Pit D), is ongoing and will be announced when received.

Figure 1 - Naujaat Project Overview and Sampling Locations

Diamond recoveries reported below have been achieved using a TOMRA Com 300 X-Ray Transmission (XRT) sorter, capable of recovering diamonds larger than 2mm. The results are reported with a bottom sieve size of +9 DTC which is the smallest sieve size for which diamonds are detected and fully recovered using the XRT. While this is a very coarse cut off for a traditional evaluation sample, it meets the needs of the current program.

A summary of the +9 DTC diamond recoveries is provided in the table below along with comparable results from the 2014 bulk sample collected from the A28 unit of Q1-4 (sample A282014).

Weight	# Diamonds	Carats	Sample Grade
Sample	(dry tonnes)	(+9 DTC)	(+9 DTC)	(+9 DTC; cpht2)	by stones	by carats
Pit B Weathered	219.5	46	17.91	8.2	21.7%	13.1%
Pit D Weathered	335.7	82	35.94	10.7	19.5%	28.7%
Pit D Rock	521.2	98	48.43	9.3	12.2%	14.2%
Pit B Rock	239.6	42	15.69	6.6	23.8%	33.0%
Total3	1,316.0	268	117.98	9.0	17.9%	20.9%
A2820144	1,353.3	336	126.26	9.3	11.0%	11.9%

Proportion Fancy Colours1

• 1 Classification of Fancy Colour diamonds by Saskatchewan Research Council using colour-grading scale established by the Gemological Institute of America; for comparison purposes colour classification of the 2014 sample is shown based on a non-standardized empirical characterization of intense & dark yellow diamonds.

• 2 Carats per hundred tonnes with bottom cut-off of +9 DTC.

• 3 Totals determined by arithmetic; may differ due to rounding.

• 4 Initially reported at a +1 DTC (~0.01 carat) bottom cut off in North Arrow news release dated May 5, 2015. Restated here using a +9 DTC bottom size cut off to more effectively compare to 2021 results which reflect a 2mm bottom size cut-off.

  Combined diamond recoveries from the first four 2021 subsamples total 268 diamonds greater than +9 DTC sieve weighing 117.98 carats from 1,316 dry tonnes of kimberlite for an overall +9 DTC sample grade of 9.0 cpht. Recovered diamonds include 33 diamonds larger than the 3 grainer (~0.66 carat) size and 21 diamonds larger than 1 carat. The three largest diamonds are 3.31 carats (Fancy intense orange irregular cube aggregate), 3.07 carats (Grey (boart) cubic aggregate), and 2.76 carats (off-white irregular octahedral aggregate).

  Colour characterisation studies of the diamonds have been completed using the industry standard grading scale established by the Gemological Institute of America (GIA). Forty-eight of the 268 diamonds (17.9%) classify as fancy coloured (20.9% by carat weight) with over 90% having orange as the primary colour and 58% categorised as having either intense or vivid colour saturations, the two highest colour saturations. The number of diamonds in each fancy colour grade is provided below.

  Fancy Colour	Stone Count
  Vivid Orange	13
  Intense Orange	15
  Orange	8
  Light Orange	8
  Light Yellow	1
  Orange with brown tinge	2
  Light Orange with brownish tinge	1

  The GIA colour grading scale is the industry standard for polished diamonds and, although colour grading of rough diamonds is very similar to that of polished diamonds, there is no universally accepted colour grading scheme for rough diamonds. Colour grading of the Naujaat rough diamonds provides useful information for modelling the Fancy Colour diamond population. However, for individual rough stones, the graded colour does not necessarily represent the final colour of a diamond polished from the rough stone, nor does it include characterisation of a diamond's clarity (e.g. presence of inclusions or cloudiness in the diamond). Previous cutting and polishing of select Naujaat rough Fancy Colour diamonds has produced Fancy Vivid Orangey Yellow diamonds, certified by the GIA and demonstrating that the Q1-4 deposit can produce polished Fancy Colour diamonds for use in the luxury jewellery market.

-ENDS-

This announcement was authorised for release on the ASX by the Board of Burgundy Diamond Mines Ltd.

Further Information:

Peter Ravenscroft	Investors and Media
Managing Director	Citadel- MAGNUS
Burgundy Diamond Mines Ltd	Ashleigh D'Alessandro
[e-mail]
[phone]
About Burgundy Diamond Mines Limited

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Burgundy Diamond Mines is focused on the mining, production and sale of polished Fancy Colour diamonds through a vertically integrated business model, with the vision to become the world's leading end-to-end diamond company.

In mid-2021, Burgundy acquired capability and facilities for the cutting and polishing of rough diamonds in Perth, Western Australia. This capability will be used for cutting and polishing of Burgundy's own production from future mining operations, as well as rough diamonds from third party producers. Marketing and sales will be conducted under a visionary brand currently under development with a view to establish a significant position in the high-value niche sector of Fancy Colour diamonds.

Competent Person's Statement

Information included in this announcement that relates to exploration results and resource estimates is based on and fairly represents information and supporting documentation reviewed by Mr Peter Ravenscroft, FAusIMM, Managing Director of Burgundy Diamond Mines Ltd, who also holds shares in Burgundy Diamond Mines Ltd. Mr Ravenscroft has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves.

Mr Ravenscroft consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

Caution regarding Forward Looking Information

This document contains forward looking statements concerning Burgundy Diamond Mines Limited. Forward looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements in this document are based on Burgundy's beliefs, opinions and estimates as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions or estimates should change or to reflect other future developments.

Appendix 1

personal use only

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	A surface bulk sample with a field weight of 2,206 wet tonnes (2,500 megabags) was taken from the Q1-4 kimberlite in Naujaat, Nunavut Canada. Two pits (B, D) sampled the A28 unit of the Q1-4 kimberlite, and one pit (E) sampled the A88 unit of the Q1-4 kimberlite. The sample results for Pit E (A88 unit) are in progress and are not included in this disclosure. Pit B and Pit D represent approximately 70% (1,799 megabags; 1,316 dry tonnes) of the total bulk sample. The results from Pit B and Pit D are included in this disclosure. The material from Pit B and Pit D was separated into weathered and rock classified subsamples indicated by a "W" for weathered and a "R" for rock. (E.g., Pit B weathered and Pit B rock). The material from Pit E was collected as a single, unseparated sample. Two mini excavators were used to fill 2,500 megabags with each bag approximately holding 900 kilograms (2,000 pounds). The pit sample locations are considered representative of the A28 and A88 units of the Q1-4 kimberlite phases for the objective of the bulk sampling program.

Reporting of bulk sampling results for the Naujaat Diamond Project

JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

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