Canadian Arrow hits more Kelex nickel

Vancouver — Drilling by Canadian Arrow Mines (CRO-V) on its Alexo project, 45 km northeast of Timmins, Ont., has encountered intersected significant nickel sulphide mineralization.

Drilling on the Kelex zone returned high-grade intercepts in the nickel sulphide lenses. Highlights include hole 47, which cut 21.1 metres (from 59 metres) grading 1.3% nickel, including a section of 3 metres averaging 5.67% nickel, and hole 49, which intersected 18.2 metres (from 74.2 metres) of 1.4% nickel, including 4.7 metres of 3.6% nickel.

Multiple nickel sulphide lenses have been outlined to a depth of about 125 metres.

Alexo hosts nickel sulphide mineralization associated with a komatiitic peridotite (an ultramafic volcanic), similar to Raglan deposit in northern Quebec and Kambalda in Western Australia. Nickel mining was conducted on Alexo in the early to mid-1900s.

Finnish mining giant Outokumpu discovered the Kelex zone and actively explored it from 1996 to 1999. The company subsequently optioned out and transferred the Alexo property to a junior explorer that has since been acquired by Canadian Arrow.

Arrow has received a second advanced-exploration permit for an additional 10,000-tonne bulk sample of ore from the Kelex zone. The company also has an agreement in place with Falconbridge (fl-t) to process the material at the Strathcona mill in Sudbury, Ont. Arrow has shipped the initial 10,000-tonne bulk sample of nickel sulphide ore from Alexo for processing and has received advanced payments from Falco for the value of the nickel, copper and palladium.

Arrow acquired the Alexo project and three others from Legendary Ore Mining, a company controlled by David Larche (now Canadian Arrow’s president), through the issuance of 5.25 million shares. Recently, Arrow completed a financing of $3.7 million.

Canadian Arrow has 20.3 million shares outstanding, 39% of which are held by Larche. The stock has been trading in the 60 range.