Canadian Arrow starts mining at Kelex Nickel Project
Canadian Arrow Mines Limited announced Monday that it has commenced the mining phase on its Kelex nickel mine. Overburden removal is in progress and is planned to take one month in advance of production.
Here's the company's press release:
SUDBURY, ON, June 4, 2012 /CNW/ – Canadian Arrow Mines Limited (CRO: TSX-V) (the "Company") is pleased to announce it has commenced the mining phase on its Kelex nickel mine. Overburden removal is in progress and is planned to take one month in advance of production. The initial high grade/low tonnage open pit production from the Kelex open pit is scheduled for delivery to Xstrata Nickel's Strathcona mill in mid-2012. Plans are underway on a second phase 216,000 tonne open pit and 260,000 tonne underground expansion.
Mr. Kim Tyler, President of the Company stated, "We are extremely pleased to announce the re-start of mining at Kelex. The Alexo/Kelex Complex will also be the catalyst for driving forward development of our much larger flagship Kenbridge nickel/copper project. Despite the recent dip in metal price we are encouraged by strong market fundamentals and projections going forward. Two thirds of world nickel produced is consumed in stainless steel production. Despite turmoil in the world's economies, 2010 and 2011 were consecutive record years of world stainless and heat resisting crude steel production exceeding 32Mt and 35Mt respectively. Production statistics in 2012 follow a similar trend to date. "
The Company's recent sale of a non-core asset for a $2.45M have sufficiently capitalized it to proceed, most notably without diluting its share structure, in a difficult equity market disconnected from metal markets.
The property has historically produced 87,000 tonnes averaging 3.06% nickel from mainly one lens of massive sulphides. The Company has since discovered five more such high grade lenses of similar grade and varying size encased within bulk minable disseminated nickel sulphide halos in the Alexo/Kelex Nickel Complex. The potential on both trends for more discoveries along strike and at depth is excellent with many untested geophysical anomalies and area drill intersections requiring follow-up.
The Company's flagship Kenbridge nickel project 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 Company also announces the resignation of Director and Vice President of Exploration Todd Keast. It wishes to thank Todd for his contribution to the development of its projects and wishes him well in his future endeavours.
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.