Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
432
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. CANADIAN ARROW MINES LTD. CRO.V Canada’s Emerging Nickel-Copper Producer This presentation may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward- looking statements are made as of the date of this presentation and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated Kenbridge performance. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", Timmins "anticipates" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual Turtlepond performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, which are detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www. sedar.com. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward- looking statements, there may be other factors that cause its performance not to be as anticipated. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Corporate Review – October 1, 2010
  • 2. Asset Valuation vs. Market Cap 3 Key Nickel‐Copper Assets: 104M lbs of NI 43‐101 contained nickel: 1. Kenbridge nickel‐copper project: 98M lbs of Ni @ US$3.55/lb C1 prod. cost NPV @ US$10/lb Ni net of Cu credits:  $253M 2. Alexo and Kelex nickel mines: 6M lbs of Ni @ US$2.76/lb C1 prod. cost NAV @ US$10/lb Ni net of Cu, Co credits: $25M 3. Arrow retains 2% NSR in Hart nickel project starting Q4 2011, (Liberty Mines Inc.*): Life of mine net NSR revenue est’d @ $246M1 NPV (@US$7/lb) Arrow retains a 2% NSR (@ US$10/lb): $9M Total Net Asset Value:  $287M Market Capitalization: Arrow Shares outstanding:  117.5M @ $0.06 Market Capitalization: $7M (98% discount to NAV!) Market Cap/lb Ni:  US$0.06/lb Current  nickel LME price:  US$10.47/lb (99.4% discount to market!) *(1Liberty Mines Inc. PEA, Feb 26, 2010)
  • 3. Corporate Information (as of September 27, 2010) TSX Venture   CRO.V Majority Shareholders: Share price  $0.06 • Pinetree Capital                  8.1 % Market capitalization $7 M • Management  7.8 % Shares outstanding      117.5 M Warrants 7.37 M Fully Diluted        130 M 52 week high/low                  $0.04 ‐ $0.12
  • 4. Production Oriented Management Dean MacEachern, CEO: President & CEO of Blackstone Ventures. Former Exploration  Manager for Falconbridge Ltd in Canada and Africa.. Kim Tyler, President:  Former Mine Manager for Rio Tinto Minerals, Chief Mine  Geologist, Vale Inco, Sudbury, and Chief Mine Geologist, Royal Oak Mines. Garett Macdonald, VP Operations: VP Operations, Rainy River Resources Former Project  Manager for Suncor Energy and Placer Dome Inc.. Todd Keast, VP Exploration:  Former Exploration Manager, Canadian Royalties, Ungava  Region, NE Quebec George Pirie, Director: Former President and CEO, Breakwater Resources Ltd  Andy Mollison, Technical Advisor: Former Manager Concentrate Sales Xstrata Nickel
  • 5. Focused on Nickel Sulphide Deposits in Ontario, Canada NI 43‐101 Meas. & Ind. Resources: 104 M lbs Nickel Developing 2 advanced, low risk nickel‐copper projects: Kenbridge Project 98 M lbs nickel resource (NI 43‐101) in M&I  Existing 2,000’ shaft & two developed levels Completed Preliminary Economic Assessment $253M NPV, $421M total cash flow over 8 year mine life 3 years to production Timmins Alexo and Kelex Mines 5.8 M lb nickel resource (NI 43‐101) in Indicated class Direct ore shipping options Past producers in east Abitibi nickel mining district: 87,000  tonnes @ 3.06% Ni historic production Permitted.  Under review for rapid re‐start $25M in quick cash flow over 3‐6 months 6 months to production
  • 6. Projected Corporate Annual Cash Flow Projected $454M net positive cash flow  Annual Projected Cashflow over 10 years $500,000,000 Near term production plan: $400,000,000 • Re‐start Alexo/Kelex Mines;  $300,000,000 • access early cash‐flow at high  $200,000,000 metal prices within 6 months $100,000,000 • generate $25M in cash flow $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 • Liberty Mines Hart Project NSR to  -$100,000,000 generate additional $5‐9M in cash flow  -$200,000,000 starting Q4 2011 Cumulative CF Timmins Hart NSR Kenbridge • Use cash flow to develop and construct  Kenbridge • Generate additional $421M in cash flow  Kenbridge $108M  over 8 years pre‐production  capital less $30M  from Hart/Timmins
  • 7. Timmins Projects: Alexo and Kelex Kelex Alexo: Past producer (Pre‐2005) Historic: 87,000t @ 3.06% Ni, (5.8M lbs) Kidd Met 2005 ‐ Nickel price falls below US$5/lb: Site Mining operations temporarily  Liberty suspended   Mines Mill • Projects currently under review to re‐start  now that nickel at US$10/lb • Permits remain in place • Custom milling facilities now nearby • Direct ore shipping options • Opportunity for rapid re‐start, low capital  outlay and quick pay‐back 
  • 8. Timmins Projects Economics: 5.8 M lbs of contained  nickel in 6 zones • Open Pit pre‐production capital: $300k • Production rate: 1,500‐3,000 tpd Kelex • Total NI 43‐101Resource: • 272,500 tonnes @ 0.96% nickel indicated • 54,000 tonnes @ 0.84% nickel inferred • C1 operating cost, net of byproducts: US$2.76/lb • C1+ Capital cost: US$3.65/lb • Mine operating cost/tonne: • Open Pit:    $35/tonne • Underground:    $85/tonne Alexo • Life of Project: 3‐6 months • Net Cash Flow @ US$10/lb Ni: $25M NSR Blocks: NI 43‐101Resource  •$0.01‐$50   Blue Estimate 3D Block  •$50‐$100   Cyan Models •$100‐$200 Green •>$200       Red
  • 9. Kenbridge Nickel‐Copper Project • NI 43‐101resource of 98M lbs nickel, 52M lbs copper, contained • Arrow completed PEA: stand alone open pit + UG,  mill/concentrator facility • LOM C1 cash cost/lb Ni net of Cu:  US$3.55/lb Kenbridge • Road access within 100 km of either CN or CP railheads;  1,500 km by rail to Sudbury • Start‐up capital: $108M • Former Falconbridge project, 60 man camp (1952‐58) • 623m x 3 compartment shaft, (4th compartment at bottom 2  levels) • two levels developed, bulk sampled • metallurgical work completed (high Ni recoveries, low MgO) • Base metals price crash in 1958 ‐ never mined
  • 10. Kenbridge – Resources @ US$10/lb Aug. 2008 NI 43‐101 Mine area & class Tonnes % Ni % Cu Open Pit (M&I) 4.46 Mt 0.42 0.23 Underground (M&I) 2.67 Mt 0.96 0.50 Underground (Inf.) 0.1 Mt 1.38 0.88 7.2% Ni • @US$10.00/lb Ni, US$2.50/lb Cu /5.5m • 98 M lbs of contained nickel • 52 M lbs of contained copper OP • Deposit is open at depth in all directions EN OP EN • High grades at depth, including  • 7.2% Ni over 5.5m (KB‐07‐180) • 4.3% Ni / 3.0m (2011) OPEN 4.3% Ni/3.0m
  • 11. Corporate Timeline to Production 2010 2011 2012 2013 Timmins Production  Kenbridge: Feasibility Permitting  Road work Construction * Timmins projects offer opportunity to finance Kenbridge through feasibility  and into production with the Company’s own cash flow and minimal  requirement for equity financing
  • 12. Exploration Potential: • Timmins Projects untested at depth and  along strike •Geophysical targets untested  • Kenbridge deposit is open in all  directions; regional geophysics targets  remain untested • Turtlepond/Denmark projects: 9  separate Ni/Cu occurrences including  three new discoveries within 70 km of  Kenbridge
  • 13. What to Look For Complete Timmins evaluation ‐ DONE Secure capital to recommence Timmins production – To Close Oct. 15,  2010 Commence production at Timmins Complete feasibility study and permitting on Kenbridge Expand Ni‐Cu resources at Kenbridge and Timmins; test regional targets Commence production at Kenbridge Seek out and acquire additional projects