CANADIAN ARROW EXTENDS MINERALIZATION AT KELEX: INTERSECTS 0.45% NICKEL OVER 32.3 METRES

SUDBURY, ON, Jan. 6 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") reports assay results on the next holes drilled on its Timmins, Ontario Kelex nickel project 2010 program.

Hole 2010-03 intersected 0.63% Ni over a 4.0 metre interval within a larger interval averaging 0.45% Ni over 32.3 metres.  The hole was drilled on the same section as, and approximately 30 metres below,  previously announced hole 2010-02 which intersected  24.5 metres averaging 0.64% nickel including a higher grade interval grading 1.22 % nickel over 4.7 metres.  Drill holes 2010-01, -02 and -03 have successfully extended the nickel sulphide mineralization within pyroxenite host rock to depth and along strike east of the Kelex West (KW) zone towards the adjacent Kelex Central West (KCW) Zone.

Additionally holes 2010-05 and 2010-07 intercepted narrow intervals of massive sulphide in thinner pyroxenite grading 2.21% nickel over 0.4 m and 2.5% nickel over 0.2 m respectively. The holes were drilled on section 1400E approximately 100 metres east along strike of the KW Zone.  The broader, lower grade disseminated mineralization intercepted in the KW zone is interpreted to resolve into narrower, high grade, massive sulphides accumulating along the footwall contact in the KCW pod. Previous drilling in the KCW zone intercepted grades between 0.83% Ni/4.8m in LOX-26-04 and 2.34% Ni/9.4m in LOX-14-04. The 100 metre gap of ground between the two zones remains under-drilled.

Mr. Kim Tyler, President of the Company, said, "We are very pleased that these new results extend the mineralization at Kelex.  These results will be incorporated into a new resource estimate and will have a positive impact on our ongoing planning to resume production at Kelex."

Drilling suspended over the holiday season has resumed as of January 4, 2011.

Table 1 - Kelex Significant 2010 DDH Assay Results to date

Hole From (m) To (m) Length (m) True Width (m) Section Dip Ni%
2010-01 78.0 91.0 13.0 8.9 1315E -45 0.55
Includes 79.3 81.0 1.7 1.2     1.34
2010-02 95 119.5 24.5 9.6 1300E -41 0.64
Includes 97.3 102 4.7 1.8     1.22
2010-03 134.3 151.0 32.3 8.9 1300E -50 0.45
Includes 137.0 141.0 4.0 1.1     0.63
2010-04 68.3 70.1 1.8 TBD* 1375E -53 0.62
2010-05 85.9 86.3 0.4 TBD 1400E -55 2.21
2010-06 94.0 94.5 0.5 TBD 1400E -62 0.50
2010-07 80.3 81.5 1.2 TBD 1400E -45 0.61
Includes 81.3 81.5 0.2 TBD     2.50

(*To be determined)

The Kelex zones discovered to date are defined by a string of five lenses of higher grade massive sulphides within a broader, lower grade, nickel sulphide halo that extend along a 600 metre strike length and are drill defined to only 100 metres below surface. Sparse drilling below the 100 metre horizon has intercepted additional mineralization to at least the 350 metre elevation. Widths and continuity of both the Kelex and Alexo zones indicate amenability for both bulk minable open pit and underground extraction.

The exploration program is being carried out under the direction of Kim Tyler, P. Geo., President of the Company, a qualified person as defined by National Instrument 43-101.

Analytical Method

-----------------

Mineralized diamond drill hole intervals reported are down hole core lengths only. NQ diameter drill core samples are split in half; one half being retained in its original core box and the second half sent to an independent commercial laboratory for analysis. Samples are analyzed by ALS Chemex Laboratories in Vancouver, BC. Samples analyzed for base metals (nickel, copper, and cobalt) are digested with a four acid digestion technique with an ICP-AES finish.  Precious metals, (platinum, palladium and gold), are fire assayed with an ICP-AES finish.

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 Falconbridge Limited and has never been mined.

Highlights of an updated NI 43-101 Preliminary Economic Assessment Technical Report (PEA) (1) reported on 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 Falconbridge expended, Canadian Arrow has additionally expended over $9M 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. Highlights of a NI 43-101 Technical Report and Resource Estimate (1) reported on September 22, 2010 include an indicated resource of 243,000 tonnes grading 1.08% nickel containing 5.8M lbs of nickel.

(1) 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 Mr. Andreas Curkovic at 1-416-577-9927.

Profil de l'entreprise

Canadian Arrow Mines Ltd.

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