Canadian Arrow Mines receives NI 43-101 resource estimate for Kenbridge Nickel-Copper Deposit



    SUDBURY, ON, March 22 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V)
(the "Company") announced today that it has received the executive summary
from SRK Consulting (Canada) Inc. ("SRK") of Toronto regarding the mineral
resource estimate for its Kenbridge Nickel Mine Property. Highlights of the
resource estimate compare favorably with the historical estimate generated by
Falconbridge Limited (now Xstrata Nickel). All resources are classified as
Inferred Resources (IF).
    The SRK estimate includes the following inferred resources:

    
    -   2.1 million tonnes of inferred resource grading an average of 0.58%
        nickel and 0.26% copper contained within the upper 150m of the
        deposit at a cut-off of 0.3% nickel.

    -   1.1 million tonnes of inferred resource grading an average of 1.01%
        nickel and 0.52% copper contained below the 150m level of the deposit
        at a cut-off of 0.7% nickel.
    

    SRK qualifies the mineral resources above the 150m level with a higher
confidence classification (higher density of drill holes) and a higher
probability of being upgraded to Indicated (ID) category after additional
verification drilling. The mineral resources below the 150m level are
characterized by sparse drill spacing and could be partially upgraded to
indicated category after additional drilling and a more comprehensive
understanding of geological and grade distribution.
    Comparing current SRK derived resource grade sensitivities to historical
resource estimates, it is significant to note that an estimate of 6.6 Mt of
0.55% nickel and 0.30% copper (at a cut-off of 0.2% nickel) compares favorably
to the historical Falconbridge Bulk Mining Resource Estimate of 6.9Mt of 0.52%
nickel and 0.31% copper (at a cut-off of 0.2% nickel).
    Commenting on the resource estimation, Vice President Exploration Dean
MacEachern, stated, "The Company is satisfied with the resource estimate
provided by SRK, as it provides a reference point for Canadian Arrow to begin
diamond drilling on the Kenbridge Deposit. At the same time the Company has
initiated a preliminary economic assessment of the Kenbridge deposit which
will utilize the resource estimates to evaluate the economic viability of the
deposit. Our exploration efforts will focus on increasing the confidence level
of the mineral resources and on expanding the size and increasing the grade of
the deposit."
    He added, "It is important to note that 93% of the drill holes in the
resource database were completed prior to 1958. The challenges involved in
working with a historical database included amongst other things, a lack of
continuous sampling in the drill holes since sampling focused on the massive
and semi massive sulphide mineralization. We also identified that the majority
of the surface drill holes were completed with less than optimal orientation
commonly drilling subparallel to sulphide zones. The focus of the historical
drill programs was on identifying the deeper resources. With these factors
considered, the NI43-101 mineral resource has come in very similar to the
Falconbridge Limited historical resources from 1970."
    The Company has contracted WMT Associates and Micon International Limited
to provide a scoping study utilizing the SRK resource estimate to determine
the economic potential of developing the Kenbridge resource. The scoping study
will identify the approximate costs and establish the resource thresholds
required to advance the project to feasibility stage. Although the Kenbridge
Nickel Deposit was never mined due to metal prices during the 1950s, it was
developed with a 2,000 foot shaft and two working levels.

    Resource Classification

    The Kenbridge resource estimate was classified by Mr. Glen Cole, P.Geo.
Principal Resource Geologist with SRK according to the CIM Definition
Standards for Mineral Resources and Mineral Reserves (December 2005). All
mineral resources are classified as Inferred (IF) and subdivided into IF1 and
IF2, based on different cut-off grades. The IF1 mineral resources are
delineated by first pass search ellipses as defined by variography to a depth
of 150m. The IF2 mineral resources are defined by extended search ellipse
distances below the 150m level and reported at a higher cut-off.
    Because of much tighter drill spacing, the near-surface IF1 mineral
resources sub-category is considered by SRK has having a greater probability
of being upgraded to an Indicated (ID) category with additional verification
drilling. The IF2 mineral resources are located at depth where drill spacing
is sparse limiting the understanding of the geological controls and grade
distribution. Accordingly, additional drilling will be required in order to
give confidence that the IF2 mineral resources could be converted to an ID
category.

    Resource Statement

    The Kenbridge mineral resource model was constructed in Datamine Studio
using a geostatistical block model approach constrained by solid wireframes
interpreted using a 0.2% nickel envelope. Block size was set at 5m on all
sides. Assays were composited to equal 2.5m lengths with zero values assigned
to unsampled intervals. Nickel and copper grades were estimated by ordinary
kriging using parameters set by variography analysis. The mineral resource
statement for the Kenbridge nickel deposit is presented in the table below:

    
    Table 1. Mineral Resource Statement, Kenbridge Nickel-Copper Deposit,
    Ontario, SRK Consulting, March 21, 2007.
    -------------------------------------------------------------------------
    Classifi-     Tonnes                                        Contained Ni
    cation        (Mt)          Ni%          Cu%          S.G.      (000't)
    IF1(*)         2.1         0.58         0.26         2.95        12.18
    -------------------------------------------------------------------------
    IF2(*)         1.1         1.01         0.52         2.95        11.11
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total          3.2         0.73         0.35         2.95        23.29
    -------------------------------------------------------------------------
    (*) IF1 mineral resources are reported at a cut-off of 0.3% nickel that
    is believed to be suitable for open pit mining scenario, while the IF2
    mineral resources are reported at a cut-off of 0.7% nickel to reflect a
    possible underground mining scenario. These cut-offs have not been
    verified by metallurgical testing or by any mining engineering studies.
    The numbers have been rounded to reflect the relative accuracy of the
    estimates. Mineral resources are not mineral reserves and do not have
    demonstrated economic viability. SRK is not aware of any known
    environmental, permitting, legal, title, taxation, socio-economic,
    marketing or other relevant issues that could potentially affect this
    estimate of mineral resources
    

    Canadian Arrow's objective is to determine the economics of developing
the Kenbridge Nickel Deposit while adding to the existing mineral resource
through exploration of its high potential targets in northwestern Ontario.
    The Company is earning a 100% interest in the Kenbridge Property from
Blackstone Ventures Inc. by making expenditures and payments of $10 million on
or before December 31, 2012 and completing the issuance of 2.5 million units
in its capital stock spread over four years to Blackstone. Each unit shall
consist of a common share and a one-year common share purchase warrant with
each warrant having an exercise price equal to 125% of the trading price of
the common shares of the Company on the day prior to the issuance.
    A copy of the full resource calculation report will be available on the
SEDAR website within 45 days of this press release. The mineral resource
estimate which is effective today was prepared by SRK Consulting (Canada)
Inc., an independent consulting firm. The qualified person (as described under
National Instrument 43-101) responsible for the resource estimate and
technical content of this press release is Mr. Glen Cole, P.Geo. a Principal
Resource Geologist at SRK.
    The exploration program is being carried out under the direction of the
Company's Exploration Manager Todd Keast P. Geo., a qualified person as
defined by National Instrument 43-101. The information in this release was
prepared under the direction of Dean MacEachern, P. Geo., Vice President
Exploration for the Company, a qualified person as defined by National
Instrument 43-101.

    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".

    
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                           catarina@chfir.com.

         THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
                       RESPONSIBILITY FOR ITS CONTENTS.

         THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF
                             THIS PRESS RELEASE.
    

    %SEDAR: 00008534E




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.,
Dean MacEachern, Vice President Exploration, Tel: (705) 673-8259, E-mail:
dean@canadianarrowmines.ca; CHF Investor Relations, Barry Leung, Tel: (416)
868-1079 ext. 222, E-mail: barry@chfir.com; or Cathy Hume, CEO, Tel: (416)
868-1079 ext. 231, E-mail: cathy@chfir.com


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