CANADIAN ARROW UPDATE INCREASES ALEXO KELEX INDICATED RESOURCES BY 95%
SUDBURY, ON, May 2 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") reports it has received an updated mineral resource estimate from P&E Mining Consultants Inc. of Brampton, Ontario for its Alexo and Kelex nickel project located approximately 70 km east of Timmins, Ontario. The resource estimate includes drill results from 2,802 metres within 17 holes recently completed in February 2011 and will support plans for expanded near term production. Indicated resource base metals now total 9.92 million (M) lbs of Ni, 0.46 (M) lbs of Cu and 0.37 M lbs of Co for the Alexo and Kelex Timmins projects. Inferred resources now total an additional 1.19 M lbs of contained nickel.
| Indicated |
Tonnes |
Ni
% |
Cu % |
Co % |
Au g/t |
Pt g/t |
Pd g/t |
contained Ni lbs M |
contained Cu lbs M |
contained Co lbs M |
| Alexo Open Pit* |
18,000 |
1.36 |
0.16 |
0.06 |
0.04 |
0.16 |
0.41 |
0.54 |
0.06 |
0.02 |
| Kelex Open Pit* |
198,000 |
0.91 |
0.04 |
0.04 |
0.01 |
0.03 |
0.05 |
3.97 |
0.17 |
0.17 |
| Total Open Pit* Indicated |
216,000 |
0.95 |
0.05 |
0.04 |
0.01 |
0.04 |
0.08 |
4.51 |
0.23 |
0.19 |
| |
|
|
|
|
|
|
|
|
|
|
| Alexo Underground |
6,000 |
0.75 |
0.10 |
0.04 |
0.03 |
0.10 |
0.22 |
0.10 |
0.01 |
0.01 |
| Kelex Underground |
251,000 |
0.96 |
0.04 |
0.03 |
0.01 |
0.03 |
0.06 |
5.31 |
0.22 |
0.17 |
| Total Underground Indicated |
257,000 |
0.96 |
0.04 |
0.03 |
0.01 |
0.03 |
0.06 |
5.41 |
0.23 |
0.18 |
| Total Indicated |
473,000 |
0.96 |
0.04 |
0.03 |
0.01 |
0.03 |
0.07 |
9.92 |
0.46 |
0.37 |
| |
|
|
|
|
|
|
|
|
|
|
| Inferred |
Tonnes |
Ni
% |
Cu % |
Co % |
Au g/t |
Pt g/t |
Pd g/t |
contained Ni lbs M |
contained Cu lbs M |
contained Co lbs M |
| Kelex Underground |
66,000 |
0.82 |
0.04 |
0.02 |
0.01 |
0.01 |
0.02 |
1.19 |
0.06 |
0.03 |
| (1) |
* Designates resources defined within an optimized pit shell. |
| (2) |
The resources for Alexo and Kelex are estimated on the basis of approximate 2 year trailing average US$ metal prices of $9.20/lb nickel, $3.24/lb copper, $20/lb cobalt with a USD exchange rate of C$0.95=US$1.00. NSR cut-offs were C$35/tonne for open pit mining operations and C$70/tonne for underground mining operations. |
| (3) |
Process recoveries of Ni 85%, Cu 90% and Co 40% along with respective payables of Ni 85%, Cu 90% and Co 50% were utilized in the NSR calculation. The open pit resources were defined within an optimized pit shell with 50 degree slopes and mining costs of C$3.50/tonne for ore, C$2.75/tonne for waste rock and C$2.00/tonne for overburden. |
| (4) |
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. |
| (5) |
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. |
| (6) |
The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005. |
The Company's NI 43-101 Measured + Indicated contained nickel metal resource including its flagship Kenbridge nickel project (Sedar Aug. 19, 2008) now totals 110 M lbs of nickel. The closing non-LME spot nickel price on April 29, 2011 was quoted at US$12.17/lb. Canadian Arrow Mines trades on the TSX-V under the symbol "CRO" and has 131,792,030 shares issued and outstanding. Closing share price as of April 29, 2010 was $0.10 per share.
Canadian Arrow President, Mr. Kim Tyler said, "We are extremely pleased that a small amount of drilling was able to more than double the Kelex Indicated resources. The additional 2,802 metres of drilling completed in the recent program equates to 81 tonnes of Indicated resource per metre drilled and highlights the relative ease with which further increases in resources may be possible with future drilling programs. There are many historic drill intercepts, geophysical targets and strike/depth extensions that require follow up and remain untested. Despite the strong incentive to continue drilling the Company remains focussed on financing future expansion through production generated cash flow rather than dilutive equity financing."
Metallurgical test work from composite samples also collected during the latest drill program has been completed and results are being compiled in a final report due shortly. A request by the Ontario Ministry of Northern Development, Mines and Forestry (MNDMF) for an amendment to the existing Alexo Closure Plan for corporate recertification and updated progressive reclamation costs was submitted to the MNDMF on March 4, 2011 and awaits review and filing.
A total of 227 holes totalling 29,497 metres of drilling and including 3,146 assay samples comprise the Alexo and Kelex database. Inverse distance squared grade interpolation was utilized to determine block model grades using parameters set by variographic analyses. The Alexo/Kelex mineral resource models were constructed in Gemcom using a geostatistical block model approach constrained by net smelter return, (NSR), wireframes considering interpreted geological controls, nickel, copper, cobalt, gold, platinum and palladium composite grades. Block size was set at 5 m along strike x 1.5 m wide x 5 m high. Assays were composited to 1.0 m lengths with assay detection limit values assigned to unsampled intervals.
The Alexo and Kelex resource estimate update was prepared by Eugene Puritch, P. Eng, Tracy Armstrong, P.Geo, and Antoine Yassa, P.Geo of P&E Mining Consultants Inc., all of whom are independent Qualified Persons as defined by NI 43-101 in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. Mr. Puritch has reviewed and approved of the technical content of this press release.
The information in this release was prepared under the direction of Mr. Kim Tyler, P. Geo., President of the Company, a Qualified Person as defined by NI 43-101.
About Canadian Arrow Mines:
Canadian Arrow Mines Limited is developing two advanced nickel/copper mining projects located near existing infrastructure in Ontario, Canada. Its principal asset is the Kenbridge nickel-copper sulphide deposit located near Kenora, Ontario that remains open in three directions, is equipped with a 620 m shaft built and explored by Falconbridge Limited and has never been mined.
Highlights of an updated NI 43-101 Preliminary Economic Assessment Technical Report (PEA) on Kenbridge reported Sept. 4, 2008 include an operating cash cost/lb payable net of copper credits of US$3.47/lb nickel. At life of mine metal prices of US$10/lb Ni and US$2.50/lb Cu; a CD$1.00:US$0.90 exchange rate and a 7.5% discount rate the PEA concludes a Net Present Value of CD$253M is achievable. In addition to the work that Falconbridge expended, Canadian Arrow has additionally expended over $10M since acquiring the project.
The Company also owns the past producing Alexo and Kelex mines located in the Abitibi nickel district east of Timmins Ontario. The Alexo and Kelex mines have historically produced 87,000 tonnes averaging 3.06% nickel and are under review to re-start production.
Canadian Arrow Mines trades on the TSX-V under the symbol "CRO" and has 131,792,030 shares issued and outstanding. Closing share price as of April 29, 2010 was $0.10 per share.
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.
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