Canadian Arrow Mines Limited announced that it reports it has received the executive summary from P&E Mining Consultants Inc of Brampton regarding the mineral resource estimate for its Alexo and Kelex nickel projects. The resource estimate was commissioned to support plans for renewed near term production.
Ms Kim Tyler president of Canadian Arrow said that "These resource estimates encourage us to accelerate plans to restart production on our Timmins operations. These projects provide an excellent opportunity to generate quick cash-flow with minimal capital outlay as an alternative to equity financing for development of our larger, primary Kenbridge nickel project. The Timmins operations have historically produced 87,000 tonnes averaging 3.06% nickel. Our existing permits allow for an open pit extraction of an additional 20,000 tonnes of near surface high grade available within the larger Kelex resource. With the resource estimate completed the Company will proceed with planning out the economic details of the batch extraction including finalizing custom milling terms, securing contractors and permitting updates. The compilation effort has also identified opportunities to expand the resource through further exploration down dip, along plunge and along strike."
A total of 210 holes totaling 26,695 metres of drilling and including 2,840 assay samples comprise the Alexo and Kelex database. Inverse distance squared grade interpolation was utilized to determine block model grades using parameters set by variographic analyses. The Alexo Kelex mineral resource models were constructed in Gemcom using a geostatistical block model approach constrained by net smelter return, wire frames considering interpreted geological controls, nickel, copper, cobalt, gold, platinum and palladium composite grades. Block size was set at 5 m x 5 m x 5 m. Assays were composite to 1.5 m lengths with assay detection limit values assigned to unsampled intervals.
Drilling to date has focused on the surface to upper 100 meter horizon of the deposits at a 15 meter section drill density to define the near-surface nickel sulphide resource. The surface to 100 meter depth comprises the bulk of the indicated resource. Drilling below the 100 meter horizon comprises the bulk of the inferred resource. Widths and continuity of both the Kelex and Alexo zones indicate amenability for bulk mineable open pit and selective underground extraction.
The deposits are classified as Kambalda-style after similar type deposits occurring in Western Australia typified by clusters of high grade nickel sulphide pods and lenses settling at the stratigraphic bottom of komatiitic ultramafic flows. The Alexo and Kelex deposits are also composed of clusters of massive to semi massive high grade nickel sulphide lenses overlain by haloes of lower grade stringer and disseminated nickel sulphide lying along the footwalls of two parallel, steeply dipping komatiitic volcanic flows. The opportunity remains for more such pods and lenses to be discovered.
