Canadian Arrow Kelex nickel production update
SUDBURY, ON, Sept. 14, 2011 /CNW/ --
SUDBURY, ON, Sept. 14, 2011 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the 'Company') is pleased to report on the progress achieved towards
placing its Kelex and Alexo nickel mines located near Timmins, Ontario
back into production.
Canadian Arrow President, Mr. Kim Tyler said, 'We have successfully
achieved more significant milestones towards resumed early production
at Kelex and Alexo. We have received all regulatory approvals for our
permitting and Closure Plan requirements. Early metallurgical results
demonstrate a very marketable concentrate product can be produced. Our
current efforts are focussed on concluding definitive custom processing
and concentrate off-take agreements. We are also engaged in pursuing a
number of financing opportunities including unique options alternate to
equity dilution. The Company will defer guidance on production
timelines until such agreements and arrangements are disclosed. '
The Company plans to resume production with a first phase, small
tonnage,/high grade open pit production from the Kelex Central West pit
that was exposed, but only superficially mined, before suspension of
production in 2005 due to nickel prices falling below US$5/lb. Cash
flow received from Phase 1 will be used to evaluate the Phase 2 open
pit and underground mine expansion. Cash flow from the Phase 2
expansion will then be directed at advancing the Company's flagship
Kenbridge nickel project near Kenora Ontario. Kenbridge has an NI
43-101 measured and indicated resource of 98M lbs of Ni and 52M lbs of
Cu contained within 7.1M tonnes averaging 0.62% Ni and 0.33% Cu.
Permitting
The Company has all regulatory permits in place required for a
production restart including a filed Closure Plan, an Exemption to
Refine Domestically, a Certificate of Authorization for Industrial
Sewage Works, and a Permit to Take Water. Furthermore the Company is
pleased to report that it has recently received an upgraded temporary
Permit to Take Water from the Ontario Ministry of the Environment that
will allow the pre-production pit de-watering phase to be significantly
shortened from nine months to approximately one month.
Metallurgical Test Work
The company has received reports assessing the metallurgical amenability
and quantitative mineralogy of the high grade massive and semi-massive
footwall style portion of ores at Kelex under several flow sheet
simulations. The optimal open cleaner flotation metallurgical testwork
achieved 86.1% Ni and 74.9% Cu open cleaner recovery at a combined
concentrate grade of 10.2% Ni Cu. The testwork was performed on planned
ore for the Phase 1 production stream. The opportunity remains for
improved metallurgical recoveries and performance with recommended
additional grindability and locked circuit test work.
Custom milling and Concentrate Off-take Agreements
The Company has been engaged for several months in negotiating terms on
a number of opportunities towards custom milling of the Kelex ores to
produce marketable concentrates and the purchase (off-take) of the
concentrates. As such, the company has signed a number of
non-disclosure agreements forbidding it to comment further at this
time. The anticipated metallurgical performance and quality of
concentrate product as indicated by the metallurgical testwork noted
above has a critical impact on achieving favourable custom milling and
concentrate off-take terms.
The Alexo and Kelex mines have historically produced 87,000 tonnes
averaging 3.06% nickel from both underground and open pit mining. An
NI 43-101 Technical Report (April 2011) highlights an indicated
resource of 9.92M lbs of nickel contained in 473,000 tonnes grading
0.96% Ni for the Kelex and Alexo projects. Exploration potential exists
along strike and at depth on both zones.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
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
Xstrata Canada Corporation (formerly 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 Xstrata Canada Corporation (formerly Falconbridge
Limited) 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 containing NI
43-101 indicated resources of 473,000 tonnes grading an average 0.96 %
nickel which is the focus for earliest resumed production.
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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/September2011/14/c3177.html
visit the website at www.canadianarrowmines.ca, or contact Mr. Kim Tyler President and Director toll free, 1-877-673-5462 or contact Mr. Andreas Curkovic, Investor Relations, (416) 577-9277.