Company on track to reopen two Ontario nickel mines

Andrew Topf | September 15, 2011 | 9:03 pm Base Metals Canada Europe Nickel

Canadian Arrow Mines could soon be mining nickel again at its Kelex and Alexo mines near Timmins, Ontario.

The Toronto-listed company (TSX-V:CRO) has received regulatory approvals to resume production with a small-tonnage, open-pit operation at the Kelex Central West pit, which was exposed, but only superficially mined, before suspension of production in 2005 due to nickel prices falling below US$5/lb.

Cash from the initial operation will be used to fund a second phase of mining at the company’s flagship Kenbridge project located near Kenora, Ontario. Kenbridge has 98 million pounds of nickel and 52 million pounds of copper in the measured and indicated category, Canadian Arrow Mines stated yesterday in a press release, contained within 7.1 million tonnes averaging 0.62% Ni and 0.33% Cu.

President Kim Tyler said early metallurgical test results show the mines can produce a marketable concentrate and that the company is actively pursuing offtake agreements.

The Alexo and Kelex mines produced 87,000 tonnes averaging 3.06% nickel from both underground and open pit mining. An NI 43-101 report from April of this year highlights an indicated resource of 9.92 million pounds of nickel, contained in 473,000 tonnes grading 0.96% Ni, for both mines.

Read the full news release