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Canadian Arrow receives positive metallurgical nickel results

13.09.2011  |  CNW

SUDBURY, ON, Sept. 13, 2011 /CNW/ --
SUDBURY, ON, Sept. 13, 2011 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the 'Company') is pleased to report on the first set of results
received from Xstrata Process Support (XPS) of Falconbridge Ontario
assessing the metallurgical amenability and quantitative mineralogy of
its Kelex nickel project located near Timmins, Ontario.  The test work
performed several flow sheet simulations on a composite sample of the
high grade massive and semi-massive Ni sulphide footwall portion of the
Kelex mineralization collected by the Company.  The test work included
both open rougher-scavenger circuit and open cleaner flotation circuit
conditions. The mean head grade of the sample contained 2.13% Ni and
0.09% Cu.


The most optimal rougher-scavenger simulation concluded:


-- 89.9% Ni and 75.5% Cu rougher-scavenger recovery were achieved
at a combined concentrate grade of 10.2% Ni Cu grade in the
open rougher circuit.


The most optimal open cleaner flotation metallurgical testwork
concluded:


-- 86.1% Ni and 74.9% Cu open cleaner recovery was achieved at a
combined concentrate grade of 10.2% Ni Cu in the open cleaning
circuit.
-- Due to the low Cu head grade, there is no need for Ni/Cu
separation.


-- The MgO recovery and grade was 3.2% and 1.9% respectively.


The report further concluded:


-- MgO grades in concentrate were low for all the tests and MgO
does not appear to present a risk to concentrate quality.
-- The rougher pentlandite (Ni-bearing mineral) to pyrrhotite
(unwanted Fe-bearing mineral) ratio for Kelex ore is very good
compared to other Ni ores. The selectivity is comparable and in
many cases superior to other Ni ores.
-- The overall open circuit cleaning performance (for the optimal
simulation) for Ni and Cu recovery are comparable to the
response from other ores with similar head grades and
pyrrhotite/pentlandite ratios.


Canadian Arrow President, Mr. Kim Tyler said, 'We are very pleased with
the results of the XPS flotation work and look forward to similar
results from future work being contemplated. The results indicate a
marketable concentrate product is quite possible.  Positive testwork
results are a key consideration in the Company's efforts to secure
favourable custom milling and concentrate off-take terms.'


These test results were performed in an open circuit and as such are
un-optimized.  Further work is recommended on grindability and locked
cycle tests to fully evaluate optimal performance under closed circuit
conditions which more approximates performance expected in a full scale
mill. A second sample representing the lower grade, hanging wall
disseminated and stringer style mineralization is awaiting similar
testwork.


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/September2011/13/c2784.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.



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