CANADIAN ARROW MINE DEVELOPMENT/PRODUCTION UPDATE
SUDBURY, ON, March 14 /CNW/ - Canadian Arrow Mines, Ltd. (TSXV: CRO) (the "Company") reports continuing progress on its three key nickel-copper mining assets located in Northern Ontario. The Company's first priority is bringing its past producing Alexo/Kelex nickel property back into production later this year. The Company also anticipates receiving income from its royalty interest in the Hart nickel project now owned by Liberty Mines Inc. and tentatively planned for production in the first quarter of 2012. Proceeds of both the Kelex and Hart cash flows are to be directed towards completion of the feasibility and capital requirement on the Company's flagship Kenbridge project targeted for production in late 2013.
Mr. Kim Tyler, President of the Company said, "We have worked hard to reach this point and although we anticipate additional work needs to be completed, we expect to see production and cash flow from Kelex in the third quarter of this year. We feel confident that we can continue to meet our objectives. We are also pleased with the progress Liberty Mines Inc. has made in advancing our former Hart Project towards production in Q1 2012 and the recent news that Liberty is planning 8,000 metres of drilling to expand the resource estimate (Sedar, Feb. 25, 2011)."
Kelex/Alexo Nickel-Copper-PGE Projects:
Diamond drill data from the program completed in February, 2011 has been forwarded to an independent qualified consultant who will integrate the data into an updated NI 43-101 resource estimate over the coming weeks. The drill program successfully extended mineralization beyond the previously known indicated resource envelope including a new massive sulphide lens discovery below the known mineralization.
Samples derived from the drilling program have been prepared for metallurgical test work planned to commence March 16, 2011 at Xstrata Process Services in Falconbridge, Ontario. Conclusion of the most favourable custom milling and concentrate off-take arrangement is contingent upon the outcome of the metallurgical test work.
The existing Production Closure Plan is being updated and amended to reflect market value cost of goods and services required by the progressive rehabilitation work. This is a normal course of action for past mining operations that have been in temporary suspension. The Company has already completed significant progressive rehabilitation work, is working closely with the Ontario Ministry of Northern Development, Mines and Forestry and anticipates the amendment process will go smoothly and within expected timeframes.
Kenbridge Nickel-Copper Project:
The Company has engaged DST Consulting Engineers to resume work on key components of the Kenbridge baseline environmental study and to prepare a draft Production Closure Plan for the project. The Closure Plan, required by the Ontario Ministry of Northern Development, Mines and Forestry, is the longest lead item necessary for a production decision and will address a multitude of items required in the Kenbridge feasibility study as well.
Hart Mine Net Smelter Royalty
The Company retains a 2% net smelter royalty (NSR) on the Hart Mine 100% owned by Liberty Mines Inc. Liberty Mines Inc. announced the results of an NI 43-101 Preliminary Economic Assessment for the Hart Project (Sedar Mar. 2, 2010). The study concluded a 4.5 year life of mine net smelter revenue based on plant feed of 1,729,100 tonnes at 1.29% Ni is estimated at $246M based on US$7/lb Ni and a $1.00CDN=$0.90US exchange rate. Liberty Mines Inc has announced (Sedar, Sept. 30, 2010) that "Commercial Production from Hart is tentatively scheduled for Q1 2012 which would provide a continuous supply of ore to the (Redstone) mill." It has also announced recently that a first phase 8,000 metre Diamond drill program is planned to expand the resource tonnages down plunge (Sedar Feb. 25, 2011)
Northwest Ontario Regional Projects
The Company has focussed its efforts on securing its land position in the Kenbridge region. It has concluded its option agreement conditions on the Glatz, Emmons-Prigg and Denmark Lake projects such that the Company has satisfied requirements for 100% ownership. The new Caribou Lodge, Night Danger and Double E discoveries are located approximately 70 km east of the Company's flagship Kenbridge nickel/copper project. Exploration activity around all the Company's properties is subordinate in priority to its production objectives but will be considered as required.
The estimated starts of commercial production of the Company's projects are forward looking statements that have a high level of inherent risk associated with them. Although the Company is optimistic about the potential of its projects, there is no guarantee that any mineral deposits will be economically feasible to put into production which would have material impacts on the timing of future cash flows of the Company. The Company's development and production plans may also be affected by changes in environmental and other governmental regulation, operational performance and a number of market risks. Some specific risks and uncertainties which could affect the estimated start of commercial production are delays in re-starting production of the mine due to the date of filing of the Closure Plan, labour or equipment shortages unknown at this time or difficulties starting or re-starting production or mining of the ore.
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 National Instrument 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) (1) reported on 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.
The Company also owns the past producing Alexo and Kelex mines located in the Abitibi nickel district east of Timmins Ontario. Highlights of a NI 43-101 Technical Report and Resource Estimate (1) reported on September 22, 2010 include an indicated resource of 243,000 tonnes grading 1.08% nickel containing 5.8M lbs of nickel.
(1) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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.
