SUDBURY, Feb. 7 -- Canadian Arrow Mines, Ltd. (CRO: TSX-V) (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.