Canadian Arrow acquires former Inco claims adjacent to Alexo Nickel Project
February 05 2012 - 4:53AM
PR Newswire (Canada)
SUDBURY, ON, Feb. 6, 2012 /CNW/ - Canadian Arrow Mines, Ltd. (the
"Company") is pleased to report it has concluded a Purchase and
Sale Agreement (the "Agreement") to acquire 100% undivided interest
in 6 (six) freehold patent and surface mining rights comprising 98
hectares (the "Property") of favourably prospective ground adjacent
to its Alexo and Kelex nickel mines located in the Timmins nickel
belt in Northeastern Ontario. The patents are being acquired from a
company held by Mr. J. Kevin Filo of Timmins,
Ontario. Previously the claims were held since 1931 by Inco
Limited until 2006 at which time they were acquired by Mr. Filo's
company. The claims are 1 km south of Canadian Arrow's Kelex
and Alexo mines which contain NI 43-101 compliant indicated
resources of 473,000 tonnes averaging 0.96% nickel. The mines
are slated for production re-start in early 2012. Mr. Kim Tyler,
President of the Company said, "The Company is pleased to
consolidate its land position as it prepares for resumed production
at Kelex and Alexo. The Company believes that the exploration
potential for further resources is exemplified by the outstanding
success of the 2010-2011drill program whereby a small amount of
diamond drilling (2,802 metres) increased the previous resource
estimate by 95% (4,100,000 lbs of indicated nickel
resource). The area is extremely prospective for similar
success and the recent acquisition will enhance our prospects. We
are anxious to resume exploration but our immediate focus remains
on production" Previous airborne electromagnetic survey work on the
acquired ground completed by Inco between 1947 and 1951 detected
several geophysical conductors in the vicinity including one,
identified as #131, specifically located on the Property. In
1991 a ground horizontal loop electromagnetic survey confirmed the
presence of conductor #131. No work has since been done to explore
the conductor. The terms of the agreement include the issuance of
150,000 common shares in the capital stock of the Company in
exchange for 100% undivided interest in the properties. The
properties are subject to a 1% retained net smelter royalty. Kelex
Production Update: Contractors have been engaged to install piping
for de-watering the pits and mining contract bids are currently
being received. Forthcoming developments including production
start-up timelines will be disclosed as contract commitments and
availability are finalized. The Company plans to resume production
on its past producing Alexo and Kelex mines containing NI 43-101
indicated resources of 9.9M lbs of nickel within 473,000 tonnes
averaging 0.96% nickel. Cash flow from Alexo operations is
intended to 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 of open pit and underground measured and indicated
resources. The Alexo and Kelex mines have historically produced
87,000 tonnes averaging 3.06% nickel from both underground and open
pit mining. Exploration potential exists along strike and at
depth on both zones. The information in this release was prepared
under the direction of Mr. R. 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 and has never been mined. 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.KimTyler President and Director toll free, 1-877-673-5462
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