Improving nickel prices has Canadian Arrow Mines evaluating re-starting production at its deposits near Timmins in northeastern Ontario.
The Sudbury base metal miner announced it has started an updated economic review of its past producing Alexo and Kelex deposits, 50 kilometres north of Timmins.
Low nickel prices in 2005 forced the company to halt production, but prices have doubled since then which the company said opened up attractive operating opportunities.
Between 2004 and 2005, Canadian Arrow produced 30,138 tonnes of ore averaging 1.93 per cent nickel from open pit mining at their Alexo and Kelex zones. Unprocessed ore was shipped 350 kilometres to the Xstrata Nickel Strathcona mill in Sudbury.
The company said it is now reviewing alternatives to direct shipping that have developed in recent months.
"The projects provide an opportunity for rapid re-start with low risk and low capital input," said company president Kim Tyler in a statement. He added the ability to operations on and off in response to market conditions can potentially provide cash flow to advance their flagship Kenbridge nickel-copper project near Sioux Narrows in northwestern Ontario.
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