SUDBURY, Nov. 9 -
Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the “Company“) reports it has commenced a 2,000 metre diamond drilling program on its Timmins area Alexo and Kelex nickel projects
The Company is also pleased to announce it has received, and filed on Sedar, the completed NI 43-101 technical report from P&E Mining Consultants Inc. of Brampton, Ontario supporting mineral resource estimates for its Alexo and Kelex projects. The indicated resources announced on September 22, 2010 totals 243,000 tonnes grading 1.08% nickel, containing 5.8M lbs of nickel, and are amenable to both open pit and underground extraction(1). The report concluded that, “Opportunities exist to increase the resource estimates of the known zones with further drilling below and along strike of the deposits.“ The report also stated,“ There is a high potential of discovering other deposits on the Property as well.“
Mr. Kim Tyler, President of the Company, said, “The completed technical report supports our plans to re-start production and generate early cash-flow on our Timmins projects as soon as possible. The findings in the report have furthermore encouraged us to act on the recommendations to push out to the full mineral resource potential by drilling beyond the known mineralization towards our exploration targets. Our Timmins projects provide a low-risk opportunity to finance development of our larger, primary Kenbridge nickel project as an alternative to fund raising in the market.“
The Company is proceeding with permitting updates, negotiating custom milling terms, securing contractors and site preparation. Other work planned includes metallurgical test work, borehole geophysics and compilation of historical geophysical surveys; all geared to expand, optimize and expedite production plans.
A total of 210 holes totalling 26,695 metres of drilling comprise the Alexo and Kelex database. The NI 43-101 indicated resource identified to date as a function of drilling thus equates to 9.1 tonnes per metre drilled or 217 lbs of contained nickel per metre drilled.
Drilling to date has focused on the surface to upper 100 metre horizon to define the near-surface nickel sulphide resource and comprises the bulk of the indicated resource. Drilling below the 100 metre horizon is sparse and comprises the bulk of the inferred resource. Widths and continuity of both the Kelex and Alexo zones indicate amenability for bulk minable open pit and selective underground extraction.
Further Exploration Potential:
The Alexo and Kelex deposits are composed of clusters of massive to semi-massive high grade nickel sulphide lenses overlain by haloes of lower grade stringer and disseminated nickel sulphide lying along the footwalls of two parallel, steeply dipping komatiitic volcanic flows. The opportunity remains for more such pods and lenses to be discovered.
Alexo drill programs and past production have defined a 45 metre eastern plunge extension of the Alexo Main sulphide lens to the 120 metre depth. No drilling or exploration has been conducted below this elevation. The 125 metre plunge interval between the Main Zone Extension and the East Zone remains untested by drilling although a down-hole mise a la masse geophysical survey conducted in 2001 indicated the two zones were conductively connected. Drilling beyond the East Zone is limited. Alexo is further enhanced by significant copper, cobalt, platinum and palladium values.
The Kelex zones discovered to date are defined by a string of five lenses of higher grade massive sulphides within a broader lower grade nickel sulphide halo that extend along a 600 metre strike length and drill defined to only 100 metres below surface. Sparse drilling below the 100 metre horizon has intercepted additional mineralization to at least the 350 metre elevation.
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. In addition to the work that Falconbridge expended, Canadian Arrow has additionally expended over $9M 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. Highlights of a NI 43-101 Technical Report and Resource Estimate 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.
For further information:
visit the website at www.canadianarrowmines.ca, or contact Mr. Andreas Curkovic, Investor Relations, (416) 577-9277.
