By KELLY LOUISEIZE
All signs point to a profitable cycle for mineral producers and Canadian Arrow Mines Ltd. in particular is fast tracking to take advantage of the mineral-frenzy market.
The junior has created a frenzy of activity around Timmins-area claims, attracting at least four other mining companies to the surrounding properties, in hopes they will come up with significant assay results as well.
Canadian Arrow has a small but potent management team, including five directors and president David Larche.
“We can make decisions quickly and move on opportunities that others might not be able to move on,” says Paul Davis, vicepresident of exploration.
What is interesting about Canadian Arrow is that they have skipped over some of the more traditional procedures in bringing the Alexo ore discovery to full production.
Alexo was a productive nickel, copper, cobalt and platinum and palladium property during the first and Second World Wars, with ore extractions down to 120 feet. Noranda and Outokumpu of Finland had done some advanced projects on the Alexo and a neighbouring claim called the Kelex, before calling it quits, mainly due to low metal prices.
Now that precious metals prices continue to rise Canadian Arrow has put forth an application to the Ministry of Northern Development and Mines for two mine production permits on both properties, starting with an open pit, then working their way underground. Davis says they anticipate hearing good news by the end of January and expect to have the permits in place by the first quarter.
“We are currently in a high metal price,” he says.
“Nickel is trading at approximately six dollars a pound in the United States and has been for the past eight months.”
In their advanced stages, Canadian Arrow obtained a permit to extract two 10,000-tonne bulk samples at the Alexo property. Shipments of ore have already been fed to Falconbridge Ltd.’s Strathcona mill in Sudbury. The estimated $886,000 in revenues from the samples are helping to finance further exploration on the site but, ultimately, projects really depend on the stock prices.
An estimated 40 employees will be selected from Iroquois Falls, Timmins and Matheson to produce 5,000 tonnes of ore per month from the prospective mines. The properties are expected to last an estimated 24 months, but Davis says more production may be possible the deeper they
mine.
“Outokumpu on the Kelex property indicated there was low grade nickel mineralization as deep as 350 metres below surface, so there is an indication that there is a lot of potential below.”
All metal cycles permit a finite time span to maximize potential returns from an ore site. The corporate strategy is to continue mining small discoveries and open pit sites, while examining their nine other claims within a 100-kilometre radius of Timmins.
Board members for Canadian Arrow consist of John Larche, a co-discoverer of Hemlo, Warren Holmes a retired vice president of Falconbridge, Rainer Skeries, a 28 year veteran in exploration, Davis, and Allan Letourneau.
The company recently raised $3.4 million in finances through brokerage company Canaccord Capital Corp.
Other juniors like First Nickel Inc. Band-Ore Resources Ltd., Mustang Minerals Corp, Tom Exploration Inc. and Pacific North West Capital Corp. are exploring within 15 kms of the Alexo property.
