Canadian Arrow Mines receives positive assessment study for Kenbridge Nickel Project



    SUDBURY, ON, Jan. 14 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the
"Company") has received a positive Preliminary Assessment Study (PAS) for the
Kenbridge Nickel Project near Kenora, northwestern Ontario.

    
    Highlights include:

    -  Open pit amenable resources of 7.3 million tonnes grading 0.38% Ni and
       0.23% Cu with a waste to ore stripping ratio of 1.5:1 to a depth of
       160m below surface
    -  Resources amenable to underground mining totaling 3.9 million tonnes
       grading 0.7% Ni and 0.31% Cu
    -  A combined open pit / underground mining operation supplying a
       2,800 tonnes per day to an on-site concentrator
    -  Open pit mining costs of $8.50/tonne, underground mining costs of
       $41.44/tonne, processing costs of $10.39/tonne and G&A costs of
       $2.59/tonne of ore
    -  Average cash cost/lb of $4.65 nickel net of byproducts
    -  Total payable metal production of 81 million lbs of nickel and
       51 million lbs of copper over an eleven-year mine life
    -  Pre-production capital cost of $108 million including a 15%
       contingency
    -  Pre-tax Net Present Value (NPV) of $191 million at a 7.5% discount
       rate, ranging from $312 million to $70 million with +/- 20% change in
       metal pricing
    -  39% Internal Rate of Return (IRR), ranging from 57% to 20% with
       +/- 20% change in metal pricing
    -  Economics based on an average $10.00 US/lb nickel, and $2.50 US/lb per
       pound copper and $1CDN : $0.9US
    

    The report is co-authored by WMT Associates of Oakville, Ontario, P & E
Mining Consultants of Brampton, Ontario and Micon International Limited of
Toronto, Ontario.
    Kim Tyler, President of Canadian Arrow Mines, comments: "This study
indicates the economic viability of Kenbridge Nickel Deposit. The 25,000
metres of diamond drilling completed in 2007 has resulted in a 75% increase in
contained nickel within the open pit component of the mineralization. Based on
mining costs and economics, approximately 81 million pounds of nickel and
51 million pounds of copper could profitably be recovered. In addition, the
resources defined within the open pit area, including a portion of the
underground mineralization, have been upgraded from Inferred to Indicated
classification. Definition drilling will continue throughout the first quarter
of 2008 to upgrade the underground portion of the deposit to Measured and
Indicated classification towards completing a bankable feasibility study."
    Canadian Arrow Mines has concentrated on completing the necessary steps
to advance Kenbridge to a production decision within the next few months. A
program of securing key capital items has been initiated, including a
production sized mine hoist, head frame and SAG mill. In 2007 a comprehensive
environmental baseline study was undertaken which is expected to be completed
in the first quarter 2008. Inter-agency meetings have begun with Federal and
Provincial regulators and discussions with neighbouring aboriginal communities
and leadership from Treaty No. 3 First Nations are underway.
    Kim Tyler continues, "Arrow is focused on developing the Kenbridge Nickel
Project and is pleased with the significant progress made since last April
when we arrived on the site. The PAS indicates Kenbridge has the potential to
become a very profitable operation for Arrow. This study estimates that our
average cost to produce a pound of nickel, net of byproduct credits for
copper, will be $4.65 per lb. This is well below the current price of nickel
of approximately $12.50 per lb. We are excited about the potential for
enhancing project economics through further metallurgical studies, upgrading
the underground resource with definition drilling and exploration on our
numerous regional properties.
    2008 will be even busier and more exciting than 2007. Surface diamond
drilling will continue to define the orebody to the approximate shaft bottom.
The advanced exploration program will commence as soon as the access trail is
upgraded to an all season road this winter. A headframe is expected to be
installed followed by dewatering of the shaft by mid 2008. Underground diamond
drilling is expected to commence in late summer to explore the orebody's open
extensions below the shaft and along the south strike. Baseline environmental
as well as all other technical works will be ongoing culminating in a Bankable
Feasibility Study to be completed later this year. Meanwhile, surface
exploration will be shifting away from Kenbridge and onto the regional
exploration targets at Denmark Lake and Glatz-Emmons-Prigg over the winter."
    The Kenbridge Nickel Property has a highly promising resource which at
base case nickel and copper prices would provide Canadian Arrow with good
financial returns and a relatively quick payback, (approximately 2 years at
base case prices), of the initial capital investment. The Company is in the
process of fast tracking a Bankable Feasibility Study to be completed later in
2008.
    A copy of the full PAS report will be available on the SEDAR website
within 45 days of this press release. The PAS was prepared by WMT Associates,
P&E Mining Consultants Inc., and Micon International Limited, all independent
consulting firms, under the direction of Mr. Malcolm Buck, P. Eng. of WMT
Associates. Mr. Buck has reviewed and approved of the technical content of
this news release. The PAS is based on the updated technical report and
deposit model of mineral resources completed by SRK Consulting (Canada) Inc.,
released on January 9th, 2008.
    The PAS is being carried out under the direction of the Company's Vice
President of Operations, Garett Macdonald, P. Eng, MBA. The information in
this release was prepared under the direction of R. Kim Tyler, P. Geo.,
President of the Company.

    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".

    If you would like to receive press releases via email please contact:
sarah@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., 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. 247, E-mail: barry@chfir.com; or Cathy Hume, CEO, Tel: (416)
868-1079 ext. 231, E-mail: cathy@chfir.com

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