ONTARIO – All the regulatory permits have been received and the closure plan approved, putting Canadian Arrow Mines of Sudbury, ON, closer yet to reopening its Alexco and Kelex nickel mines near Timmins. No date has been given to resume mining because metallurgical results are being optimized, financing is yet to be completed, and the custom milling and concentrate off-take agreements have yet to be finalized.
The company says 87,000 tonnes of ore were mined from Kelex and Alexo, both open pit and underground, during previous operation. An April 2011 43-101 report outlined an indicated resource of 473,000 tonnes grading 0.96% Ni for the two mines.
Canadian Arrow plans to resume production with a first phase, small tonnage, high grade open pit at 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 the first phase will be used to evaluate the next phase open pit and underground mine expansion.
Cash flow from the second phase of expansion will be used to advance the Kenbridge nickel project near Kenora, ON. Kenbridge has an NI 43-101 measured and indicated resource of within 7.1 million tonnes averaging 0.62% Ni and 0.33% Cu and containing 98 million lb of nickel and 52 million lb of copper.
The most recent corporate presentation, dated June 2011, is posted at www.CanadianArrowMines.ca.