Canadian Arrow Kelex nickel production update
14 September 2011 - 10:11PM
PR Newswire (Canada)
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
p visit the website at a
href="http://www.canadianarrowmines.ca"www.canadianarrowmines.ca/a,
or contact Mr. Kim Tyler President and Director toll free,
1-877-673-5462 or contact Mr. Andreas Curkovic, Investor Relations,
(416) 577-9277. /p
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