Canadian Arrow evaluating nickel production re-start of Timmins deposits
SUDBURY, ON, May 12 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") reports it has commenced an updated economic review of its wholly owned past producing Alexo and Kelex deposits located 50 km east of Timmins, Ontario. The Company temporarily halted production due to low nickel prices in 2005 to review operating alternatives. Nickel prices have more than doubled since and attractive operating opportunities have recently developed that further enhance the deposits' economics.
Between 2004 and 2005 the Company produced 30,138 tonnes of ore averaging 1.93% nickel containing 1.3M lbs of nickel from open pit mining of the Alexo and Kelex zones. At the time the only alternative for the Company was direct shipment of unprocessed ore about 350 km to the Xstrata Nickel Strathcona mill located near Sudbury, Ontario. The Company is currently reviewing economic alternatives to direct shipping that have developed in recent months.
The Alexo property is historically reported to have additionally produced 57,000 tons at 3.6% nickel for a total of 4.5M lbs of contained nickel.
The deposits are classified as Kambalda-style named after similar type-deposits occurring in Western Australia. The Alexo and Kelex deposits are composed of massive to semi-massive nickel sulphide accumulations inhabiting basal embayments along the footwalls of steeply dipping komatiitic ultramafic volcanic flows. The massive, semi-massive sulphides are overlain by stringer, net-textured, blebby and lower grade disseminated sulphide haloes extending upwards and away from the contact. The flows contact with intermediate volcanic country rocks. Other komatiitic hosted nickel sulphide deposits and occurrences in the area include the Redstone, McWatters, Hart, Langmuir 1 and 2, and Texmont.
A total 12,710 metres of drilling in 132 holes were completed in 2004-05 on the sulphide mineralization that extends off the known previous workings. The drilling was never completely evaluated for resource potential. An independent qualified consultant has been commissioned to complete NI 43-101 compliant mineral resource estimates on the deposits.
The project remains permitted. Infrastructure including water treatment facilities remain in place as do a closure plan and a closure bond.
President Kim Tyler commented, "The projects provide an opportunity for rapid re-start with low risk and low capital input. The ability to turn-on/turn-off production in response to market conditions would potentially provide cash flow to advance the Company's flagship Kenbridge nickel-copper project located in Northwestern Ontario. We are expecting to have a NI 43-101 compliant mineral resource estimate completed in the coming weeks which will allow us to evaluate the economics of recommencing production."
The Company's exploration programs are carried out under the direction of The Company's Vice President of Exploration, Todd Keast P. Geo., a qualified person as defined by National Instrument 43-101. The information in this release was prepared under the direction of Kim Tyler, P. Geo., President of the Company, a qualified person as defined by National Instrument 43-101.
About Canadian Arrow Mines:
Canadian Arrow Mines Limited is focused on acquiring and developing nickel sulphide deposits near existing infrastructure. The Company's principal asset is the Kenbridge Project, a nickel-copper sulphide deposit containing over 44,000 tonnes of nickel in the measured & indicated classes, (Sedar, Aug. 19, 2008), as follows:
- Measured Resource: 3,546,000 tonnes grading 0.45% nickel, 0.24%
copper, 0.015% cobalt.
- Indicated Resource: 3,593,000 tonnes grading 0.79% nickel, 0.42%
copper, 0.018% cobalt.
The deposit remains open in three directions, is equipped with a 620 m shaft and has never been mined.
(*) National Instrument 43-101: Mr. E. Puritch, P. Eng., Ms. Tracy Armstrong, P.Geo., and Antoine Yassa, P.Geo. of P&E Mining Consultants Inc. are the independent qualified persons for the Kenbridge resource estimates.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
Additional information relating to Canadian Arrow is available on SEDAR at www.sedar.com
This press release may contain "forward-looking statements" within the meaning of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume, any obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: visit the website at www.canadianarrowmines.ca, or contact Mr. Kim Tyler, President and Director, toll free, 1-877-673-5462