Canadian Arrow receives positive metallurgical nickel results

SUDBURY, ON, Sept. 13, 2011 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") is pleased to report on the first set of results received from Xstrata Process Support (XPS) of Falconbridge Ontario assessing the metallurgical amenability and quantitative mineralogy of its Kelex nickel project located near Timmins, Ontario.  The test work performed several flow sheet simulations on a composite sample of the high grade massive and semi-massive Ni sulphide footwall portion of the Kelex mineralization collected by the Company.  The test work included both open rougher-scavenger circuit and open cleaner flotation circuit conditions. The mean head grade of the sample contained 2.13% Ni and 0.09% Cu.

The most optimal rougher-scavenger simulation concluded:

  • 89.9% Ni and 75.5% Cu rougher-scavenger recovery were achieved at a combined concentrate grade of 10.2% Ni+Cu grade in the open rougher circuit.

The most optimal open cleaner flotation metallurgical testwork concluded:

  • 86.1% Ni and 74.9% Cu open cleaner recovery was achieved at a combined concentrate grade of 10.2% Ni+Cu in the open cleaning circuit.
  • Due to the low Cu head grade, there is no need for Ni/Cu separation.
  • The MgO recovery and grade was 3.2% and 1.9% respectively.

The report further concluded:

  • MgO grades in concentrate were low for all the tests and MgO does not appear to present a risk to concentrate quality.
  • The rougher pentlandite (Ni-bearing mineral) to pyrrhotite (unwanted Fe-bearing mineral) ratio for Kelex ore is very good compared to other Ni ores. The selectivity is comparable and in many cases superior to other Ni ores.
  • The overall open circuit cleaning performance (for the optimal simulation) for Ni and Cu recovery are comparable to the response from other ores with similar head grades and pyrrhotite/pentlandite ratios.

Canadian Arrow President, Mr. Kim Tyler said, "We are very pleased with the results of the XPS flotation work and look forward to similar results from future work being contemplated. The results indicate a marketable concentrate product is quite possible.  Positive testwork results are a key consideration in the Company's efforts to secure favourable custom milling and concentrate off-take terms."

These test results were performed in an open circuit and as such are un-optimized.  Further work is recommended on grindability and locked cycle tests to fully evaluate optimal performance under closed circuit conditions which more approximates performance expected in a full scale mill. A second sample representing the lower grade, hanging wall disseminated and stringer style mineralization is awaiting similar testwork.

The Alexo and Kelex mines have historically produced 87,000 tonnes averaging 3.06% nickel from both underground and open pit mining.  An NI 43-101 Technical Report (April 2011) highlights an indicated resource of 9.92M lbs of nickel contained in 473,000 tonnes grading 0.96% Ni for the Kelex and Alexo projects. Exploration potential exists along strike and at depth on both zones.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The information in this release was prepared under the direction of Mr. 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 built and explored by Xstrata Canada Corporation (formerly Falconbridge Limited) and has never been mined.

Highlights of an updated NI 43-101 Preliminary Economic Assessment Technical Report (PEA) on Kenbridge reported Sept. 4, 2008 include an operating cash cost/lb payable net of copper credits of US$3.47/lb nickel. At life of mine metal prices of US$10/lb Ni and US$2.50/lb Cu; a CD$1.00:US$0.90 exchange rate and a 7.5% discount rate the PEA concludes a Net Present Value of CD$253M is achievable. In addition to the work that Xstrata Canada Corporation (formerly Falconbridge Limited) expended, Canadian Arrow has additionally expended over $10M since acquiring the project.

The Company also owns the past producing Alexo and Kelex mines located in the Abitibi nickel district east of Timmins Ontario containing NI 43-101 indicated resources of 473,000 tonnes grading an average 0.96 % nickel which is the focus for earliest resumed production.

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.

SOURCE Canadian Arrow Mines Ltd.

For further information:

visit the website at www.canadianarrowmines.ca, or contact Mr. Kim Tyler President and Director toll free, 1-877-673-5462 or contact Mr. Andreas Curkovic, Investor Relations, (416) 577-9277.


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