CANADIAN ARROW UPDATE INCREASES ALEXO KELEX INDICATED RESOURCES BY 95%
SUDBURY, ON, May 2 /CNW/ --
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.
_______________________________________________________________________________
| | | Ni | | | Au | Pt | Pd |contained|contained|contained|
| Indicated|Tonnes | % |Cu %|Co %|g/t |g/t |g/t |Ni lbs M |Cu lbs M |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 |
|___________|_______|____|____|____|____|____|____|_________|_________|_________|
| | | | | | | | | | | |
|___________|_______|____|____|____|____|____|____|_________|_________|_________|
| | | Ni | | | Au | Pt | Pd |contained|contained|contained|
| Inferred |Tonnes | % |Cu %|Co %|g/t |g/t |g/t |Ni lbs M |Cu lbs M |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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/02/c8416.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.