Vancouver —
The deal calls for Canadian Arrow to issue 3 million shares and pay $350,000 to Liberty.
McWatters was discovered in 1961 and has been drilled extensively. A lower zone is estimated to contain 144,000 tonnes grading 2.17% nickel, whereas the upper zone is pegged at 415,000 tonnes grading 0.85% nickel. Neither figure is compliant with National Instrument 43-101.
Nickel sulphide mineralization at McWatters occurs as komatiitic (that is, Kambalda-type) and is similar to that found at Canadian Arrow’s nearby Alexo project. Alexo has been bulk-sampled and awaits a full mining permit from the Ontario government.
Further drilling by Canadian Arrow will test the continuity of the mineralization at McWatters. The company will also re-log core from Liberty’s drill programs and re-assay samples to verify nickel grades and tenor. Prior drilling intersected high-grade values of up to 12.3% nickel over 5 metres in the lower (basal) zone of the ultramafic flows.
“We now have more tonnage that we can use as a leverage to improve our mill agreements,” says Paul Searle, Canadian Arrow’s vice-president of exploration. “Also, we hope to increase the life of the Alexo mine as a result of adding the McWatters property.”
Meanwhile, Liberty Mineral is eyeing small-to-medium-scale production at its Redstone nickel project, in the same area.
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