Vancouver – Adding to its base of high-grade nickel projects, Canadian Arrow Mines (CRO-V) is acquiring the McWatters project, located 23 km southeast of Timmins, from fellow northeastern Ontario explorer Liberty Minerals Exploration (LBE-V).
The deal sees Canadian Arrow issuing 3-million shares, subject to a pooling agreement, and paying $350,000 to Liberty for the advanced stage property.
The McWatters nickel deposit, discovered in 1961, has seen extensive work including drilling and a historic resource calculation outlining a lower zone of 144,000 tonnes grading 2.17% nickel and an upper zone of 415,000 tonnes averaging 0.85% nickel (both figures non-NI43-101 compliant).
Nickel sulphide mineralization at McWatters occurs as komatiitic, or Kambalda-type, similar to Canadian Arrow’s near-by Alexo project that has undergone successful bulk sampling and is awaiting a full mining permit from the Ontario government.
In its 60-day due diligence, Canadian Arrow will conduct further drilling to test the continuity of the mineralization as well as re-log core from Liberty’s drill programs and re-assay samples to verify nickel grades and tenor. Prior drilling has intersected high-grade values of up to 12.3% over 5-metres in the lower (basal) zone of the ultramafic flows.
Both junior companies are looking at small-to-medium scale production scenarios from area projects, Canadian Arrow with its Alexo nickel and Liberty from its Redstone nickel and McAra Lake cobalt properties.
Canadian Arrow reports 20.8 million shares outstanding, giving a market capitalization of $12.5-million at its recent trading price of 60 per share. At press time, Liberty’s 28-million shares outstanding trade at the 17 per share level, giving the issue a $4.8-million market capitalization.
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