Canadian Arrow receives custom milling and concentrate off-take agreements for resumed Kelex Nickel production
SUDBURY, ON, Oct. 17, 2011 /CNW/ - Canadian Arrow Mines, Ltd.
(the 'Company') is pleased to report it has signed a definitive agreement with Xstrata Nickel in Falconbridge, Ontario for the custom processing of a single bulk sample of 20 to 30 kt of Kelex Nickel ore at the Strathcona Mill, with timing tentatively planned for Q1 2012. The agreement also includes provisions for the purchase of up to 7 kt of conforming nickel concentrates produced by an independent 3(rd) party contracted by Canadian Arrow in a separate and unrelated agreement to mill ore from its Kelex Nickel Mine located near Timmins, Ontario. The agreement with Xstrata Nickel terminates December 31, 2012.Canadian Arrow President, Mr. Kim Tyler said, 'We are extremely pleased to have concluded this critical step to resumed production at Kelex. Metallurgical data gathered from the bulk sample under real processing conditions will add to the laboratory test work completed to date. We are also greatly pleased to have the opportunity to supply an additional 7,000 tonnes of conforming nickel concentrate over the course of 2012 as well. Next steps include concluding financing and contract mining arrangements.'
The Company plans to supply the bulk sample from the first phase high grade open pit production from the Kelex Central West pit that was exposed, but only superficially mined, before suspension of production due to falling nickel prices below US$5/lb in 2005. Cash flow received from Phase 1 will finance the work required to evaluate an expansion into a second phase 216,000 tonne open pit and 260,000 tonne underground mining operation. Cash flow from Phase 2 will finance the development of the Company's flagship Kenbridge nickel project. Kenbridge contains 98M lbs of nickel and 52M lbs of copper within 7.1M tonnes grading 0.62% Ni and 0.33% Cu of NI 43-101 measured and indicated resource.
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.
Canadian Arrow Mines Ltd.
CONTACT: 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.
