Canadian Arrow Mines - Metallurgical Program at Kenbridge Nickel Project returns 90% Nickel Recovery



    SUDBURY, ON, June 26 /CNW/ - Canadian Arrow Mines Ltd. (CRO: TSX-V)
(the "Company") is pleased to report its metallurgical testing program for the
Kenbridge Nickel Project has achieved excellent metal recoveries for nickel
and copper. Estimated average locked cycle flotation test (LCT) recoveries
from a blended representative sample of open pit and underground material,
which was selected by CRO, grading 0.85% Ni and 0.38% Cu were 90% and 93% for
nickel and copper, respectively. A sample of lower grade material from the
open pit portion of the deposit grading 0.41% Ni, 0.20% Cu returned average
LCT recoveries of 84% and 90% for nickel and copper, respectively. These
results represent a significant increase in the metallurgical recoveries
predicted in the Preliminary Economic Assessment (PEA), where an average
nickel recovery of 74% was used. The metallurgical program was completed by
Xstrata Process Support (XPS) in Sudbury, Ontario under the direction of XPS
metallurgists David Middleditch and Dominic Fragomeni. Richard Gowans, senior
metallurgist and Vice President of Micon International, advised the company on
the program and is the independent qualified person (QP).
    The objectives of the metallurgical program were to determine optimized
flotation conditions and grinding design criteria for the Kenbridge
feasibility study and to maximize metal recoveries. Mining at Kenbridge would
be done with a combination of open pit and underground methods. Locked cycle
flotation tests were conducted on representative samples of open pit material
and a 50/50 blend of open pit & underground materials to produce bulk
nickel-copper concentrates. Calculated average metal recoveries are presented
in Table 1.

    
    Table 1.
    Estimated Metallurgical Recoveries
    -------------------------------------------------------------------------
                   Feed grade      Metal recoveries      Concentrate Product
    -------------------------------------------------------------------------
    Sample        % Ni    % Cu         Ni     Cu         % Ni   % Cu   % MgO
    -------------------------------------------------------------------------
    Open pit      0.41    0.20         84%    90%         6.6    3.4     3-4%
    -------------------------------------------------------------------------
    Pit &
     Underground  0.85    0.38         90%    93%        11.5    5.3     3-4%
    -------------------------------------------------------------------------
    

    A final flow sheet developed during the metallurgical program was used
for the locked cycle tests. Test work determined that a regrind mill, which
was included in the preliminary PEA design, is not required, further
simplifying the process and reducing operating costs. The flotation circuit
includes primary & secondary rougher cells with a rougher bypass and two
stages of cleaning.
    A grinding circuit design report has also been completed by XPS. This
design comprises a conventional SABC circuit, comprising a semi-autogenous
grinding (SAG) mill, pebble crusher and ball mill combination to achieve the
selected flotation feed grind size. The design incorporates the 23' x 9' SAG
mill already owned by CRO.
    Garett Macdonald, Canadian Arrow's VP of Operations noted "We are very
pleased with the results of the metallurgical program. The recent flotation
results show that the Kenbridge project can deliver excellent metal recoveries
and a saleable concentrate product with a simple & proven process from
relatively low grade material. The results indicate that more saleable nickel
pounds can be recovered with insignificant change to operating costs or effort
as evaluated in the January 2008 PEA."
    Mr. Macdonald adds, "This strong metallurgical response is what makes
Kenbridge stand out. It is important to note that although higher grade zones
occur within the Kenbridge deposit, the robust metallurgical recoveries allow
for efficient and economic extraction of the lower grade halo as well, thus
providing full value optimization."
    An updated NI 43-101 resource estimate for Kenbridge is expected in the
next few weeks and will include the recent metallurgical test results
described above and the remainder of the diamond drilling from the 2007
season. This will include intersections from the high grade underground
plunges identified by holes such as KB-07-180 that intersected 2.95% Ni,
0.82% Cu over 21.5 metres, including 7.20% Ni, 0.67% Cu over 5.5 metres,
(reported in a previous news release, 02/28/2008). Canadian Arrow will provide
an update of the PEA after reviewing the metallurgical results and the
resource estimate.

    About Canadian Arrow Mines, Ltd.

    Canadian Arrow Mines, Ltd. is an established Canadian exploration and
development Company committed to developing and advancing base metal deposits
close to existing infrastructure through exploration, development and
acquisition. Shares of Canadian Arrow Mines trade on the TSX Venture Exchange
under the symbol "CRO".
    Investors are able to e-mail all questions and correspondence to
CRO@agoracom.com where they can also request addition to the investor e-mail
list to receive future press releases and updates in real time.

    
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For further information:

For further information: visit the website at www.canadianarrowmines.ca,
or call toll free, 1-877-262-6354, or contact: Canadian Arrow Mines, Ltd., R.
Kim Tyler, P. Geo, President, Tel: (705) 673-8259, E-mail:
kim@canadianarrowmines.ca; CHF Investor Relations, Barry Leung, Tel: (416)
868-1079 ext. 222, E-mail: barry@chfir.com or Alison Tullis, Tel: (416)
868-1079 ext. 233, E-mail: alison@chfir.com


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