ONTARIO - CANADIAN ARROW MINES of Sudbury, Ont., has received a positive preliminary assessment study for its Kenbridge nickel project near Kenora. The outlook is excellent to develop an operation with low cash costs - $4.65/lb of nickel net of copper byproduct credits.
The company is considering an operation that would include a 2,400-t/d mill and two mines. Open pit recovery is suitable for 7.3 million tonnes of ore grading 0.38% Ni and 0.23% Cu. A further 3.9 million tonnes at 0.70% Ni and 0.31% Cu would be mined from underground. Preproduction costs would be $108.0 million to create a mine with a life of at least 11 years.
Canadian Arrow expects to make a production decision for Kenbridge within the next few months. A program of securing key capital items has begun, including a production-sized mine hoist, head frame and SAG mill. In 2007 a comprehensive environmental baseline study was undertaken, which is expected to be completed in the first quarter of 2008. Inter-agency meetings have begun with federal and provincial regulators, and discussions with neighbouring aboriginal communities and leadership from Treaty No.3 First Nations are underway.
Surface diamond drilling will continue to define the orebody to the approximate shaft bottom. An advanced exploration program is planned as soon as the access trail is upgraded to an all season road this winter. The headframe will be installed followed by dewatering of the shaft by mid-2008. Underground diamond drilling will begin in late summer to explore the orebody's open extensions below the shaft and along the south strike. Baseline environmental as well as all other technical work will be ongoing, culminating in a bankable feasibility study to be completed later this year.
A description of the Kenbridge geology is available at www.CanadianArrowMines.ca.
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