Cro has alot of Nickel too and still a cheap one Bought today
Canadian Arrow Mines Ltd (C-CRO) - News Release
Cdn Arrow shoots for 100% of Blackstone's Kenbridge
2006-05-24 11:59 ET - News Release
Shares issued 21,386,940
CRO Close 2006-05-19 C$ 0.11
Mr. Dean MacEachern reports
ARROW MAKES DEAL TO ACQUIRE KENBRIDGE NICKEL DEPOSIT FROM BLACKSTONE
Canadian Arrow Mines, Ltd. has arranged to acquire 100 per cent of Falconbridge's interest in the Kenbridge nickel deposit from Blackstone Ventures Inc. The Kenbridge property is located in Northwestern Ontario near the town of Kenora and comprises 73 patented and unpatented claims. The property was explored by Falconbridge Ltd. in the 1950s. In 2004, Blackstone entered into a purchase and sale agreement with Falconbridge and has since completed two diamond drill programs. In 2005, Blackstone yielded numerous prospective drill intersections, including an intercept of 5.11 per cent nickel and 1.33 per cent copper over 7.8 metres in hole DDH05-21.
David Larche, Arrow's president, stated: "We believe the Kenbridge property presents an enormous opportunity to Arrow in both its value as an asset and its potential for new discoveries. Arrow's management and exploration team are familiar with the region, have significant experience in Ni-Cu-sulphide exploration and are determined to establish and expand Kenbridge's resource and reserves for its shareholders."
Falconbridge carried out extensive exploration and development work on the Kenbridge property from 1952 to 1957. Development work included a 2,000-foot shaft, 3,300 feet of horizontal development and 50,000 feet of drilling in 247 drill holes. Falconbridge's internal estimate for the mineral resource at the Kenbridge property totalled 2,705,000 tonnes grading 1.05 per cent nickel and 0.54 per cent copper to a depth of 2,000 feet. The resource includes a higher-grade area above the 500-foot level with an inventory of 544,300 tonnes grading 1.41 per cent nickel and 0.62 per cent copper using a cut-off grade of 0.5 per cent nickel over a minimum width of six feet. Falconbridge also estimated an additional inferred resource of 594,000 tonnes grading 1.55 per cent nickel and 0.9 per cent copper in mineralization below the 2,000-foot level (see note at end of this release).
In 2005, Blackstone completed 21 drill holes designed to test for high-grade portions within the orebody above the 500-foot level. Several high-grade intervals of nickel-copper mineralization were intersected. Highlights include the following: DDH05-11 -- 3.62 per cent Ni and 0.88 per cent Cu over 8.1 metres; DDH05-16 -- 2.26 per cent Ni and 0.58 per cent Cu over 12 metres; DDH05-20 -- 3.79 per cent Ni and 0.99 per cent Cu over four metres; and DDH05-21 -- 3.39 per cent Ni and 1.07 per cent Cu over 15.5 metres.
A complete list of assay results for nickel, copper and cobalt from all diamond drilling completed by Blackstone in 2005 at Kenbridge can be found at Canadian Arrow's website.
Arrow considers these intersections to be very significant and will be reviewing the drill core and all other project data as part of the due diligence period of the agreement.
Arrow will assume the terms of the underlying purchase and sale agreement dated June 6, 2004, made between Blackstone and Falconbridge. Under the terms of the agreement to acquire the Kenbridge property between Blackstone and Arrow, Arrow will complete the issuance of 2.5 million units in its capital stock spread over four years to Blackstone. Each unit shall consist of a common share and a one-year common share purchase warrant, with each warrant having an exercise price equal to 125 per cent of the trading price of the common shares of Arrow on the day prior to the issuance. In addition, Arrow will spend $9-million in exploration and development of the property by Dec. 31, 2010, and pay Blackstone a one-time fee of $1-million by Dec. 31, 2012. Arrow is required to complete a due diligence review of the property within a 60-day period. The agreement is subject to final approval from the boards of directors of Arrow and Blackstone, and applicable regulatory approvals.
Donald McInnes, president of Blackstone, commented: "The Kenbridge property appears to have significant potential for additional zones of mineralization to be discovered, as well as some very significant high-grade zones which need to be more fully evaluated by extensive diamond drilling. By completing this agreement, Blackstone is able to more fully concentrate our efforts on our high-priority nickel sulphide projects in Scandinavia while also allowing the company to participate in the advancement of the Kenbridge property as a shareholder of Canadian Arrow." Blackstone is actively exploring for nickel on the Espedalen, Vakkerlien and South Norway properties in Norway under option from Sulfidmalm A/S, a wholly owned subsidiary of Falconbridge.
The Kenbridge project is an excellent addition to Arrow's existing nickel sulphide projects in Ontario, namely the Alexo, Hart and Mann Trend properties. The company's focus remains the development and advancement of high-margin/high-profit nickel sulphide deposits close to existing infrastructure through exploration, development and acquisition in North America. Canadian Arrow's shares trade on the TSX Venture Exchange under the symbol CRO. There are approximately 21.4 million shares outstanding.
Note
It should be noted that the resource estimates prepared by Falconbridge should be considered historical and, as such, do not conform to the requirements of National Instrument 43-101. Although Blackstone and Arrow consider the resource estimates to be relevant, they have not been verified by a qualified person for Blackstone or Arrow, as required by National Instrument 43-101, and should not be relied upon. Arrow intends to establish new resource estimates under National Instrument 43-101 guidelines in due course. |
