Investor Presentation June 2010

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  • 1. CANADIAN ARROW MINES LTD. CRO.V 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 Kenbridge management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", Timmins "scheduled", "estimates", "forecasts", "intends", "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 Presentation - June 2010
  • 2. Corporate Strategy Canadian Arrow Mines Focused on nickel sulphide deposits in Ontario, Canada Developing two advanced nickel projects in Ontario, Flagship Kenbridge project near Kenora, northwestern Ontario 100 M lb nickel resource (NI 43-101), 97 M lbs in Measured & Indicated classes Existing 2,000’ shaft Leading developer in an under explored greenstone belt with significant exploration potential Timmins Alexo and Kelex Mines Alexo/Kelex Kenbridge Past producers in east Abitibi nickel mining district: 87,000 tonnes @ 3.06% Ni Closed during metal price downturn in 2005; remaining reserves potential under evaluation Permitted. Under review for rapid re-start, early cash-flow Experienced leadership combining exploration, mine operations and environmental management
  • 3. Corporate Strategy Primary Objectives: • Re-start Alexo/Kelex; access early cash-flow at high metal prices within 6 months to 1yr • Use Alexo/Kelex cash flow to develop and construct the Kenbridge Nickel Project: 2-3 yrs • Start up Kenbridge in a 2-3 year timeframe producing Exploration potential • Kenbridge deposit is open in all directions; regional geophysics targets remain untested • Turtlepond projects: 5 separate Ni/Cu occurrences including two new discoveries within 70 km of Kenbridge • Denmark Lake: 4 Ni/Cu occurrences including one new discovery within 30 km of Kenbridge • Arrow holds several drill ready Ni-Cu projects in Kenbridge and Timmins area Interim Corporate Focus • Complete Timmins evaluation • Secure capital requirement to recommence Timmins production • Generate cash-flow from Timmins operations • Complete feasibility study and permitting on Kenbridge Nickel Project • Expand Ni-Cu resources at Kenbridge and test regional targets • Seek out and acquire additional projects
  • 4. Management Team 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. Corporate information Majority Shareholders: TSX Venture Exchange CRO.V • Mineral Fields 17.1 % Share price $0.05 • Ravensden (Goodman) 9.9 % Market capitalization $5.9 M • Mavrix 8.7 % • Pinetree Capital 8.1 % • Management 7.8 % Shares outstanding 117 M • Blackstone Ventures 2.1 % Employee share options 5.37 M Warrants 7.37 M Cash: $0.3 M Fully Diluted 129.6 M Outstanding liabilities 52 week high/low $0.04 - $0.12 • $1M to Blackstone Ventures, Dec 31, 2012 • $0.8M debt to 3rd party, due Jan 31, 2011
  • 6. Developing Regional Nickel Projects TURTLE POND TIMMINS
  • 7. Kenbridge nickel copper project: Key Points: • NI 43-101resource of 80M lbs nickel, 48M lbs copper, (recoverable) • Arrow completed PEA: stand alone open pit + u/g, mill/concentrator facility • 7 year mine life averaging: • 34kt/yr Ni concentrate @ 14.1% Ni • 20kt/yr Cu concentrate @ 27.3% Cu • Road access within 100 km of either CN or CP railheads; 1,500 km by rail to Sudbury • Former Falconbridge project, 60 man camp (1952-58) • 623m x 3 compartment shaft, (4th compartment at bottom 2 levels) Kenbridge • two levels developed, bulk sampled • metallurgical work completed • Deposit open at depth and along strike • Arrow acquired in 2006 and has expended $10M towards feasibility
  • 8. $11M Expended since Acquisition 2006 2007 2008 2009 New CEO, VP Exploration NI43-101 resource estimate Updated NI43-101 resource Regional exploration targets refined and prioritized. $1.1 M financing $7.5 M financing $3.1 M financing $1.85 M financing CRO options Kenbridge New President, VP Ops Prelim Economic Assessment 1st pass drilling on Turtlepond targets 10 km access trail 30,000m drilling – open pit 12,000m deep drilling u/g 2010 Environmental baseline studies Formal FN consultations started MOU concluded with FN Metallurgical testing – Xstrata Advanced exploration permitting 2nd pass drilling on Turtlepond targets Discussions with Treaty # 3 Developer of the Year Award Review of Timmins projects Tailings & Waste storage design Metallurgical Results Geotech, hydrogeology, ARD Regional Airborne survey Inter-government agency mtgs Regional exploration commences Project description to CEAA Updated PEA Permit to take water received Permit for road upgrade received
  • 9. 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 • Deposit is open at depth in all directions • High grades at depth, including • 7.2% Ni over 5.5m (KB-07-180) • 4.3% Ni / 3.0m (2011) 4.3% Ni/3.0m
  • 10. Preliminary Economic Assessment 2008 @ US$10/lb Annual 10% Ni, 6% 2008 PEA Update Highlights Cu in Bulk Concentrate • 1.0 Mtpy on site concentrator • 50/50 blend of Open pit and UG ores Year Tonnes Recovered Recovered • Flexible mine access – pit, decline, shaft Concentrate Nickel Copper (M lbs) (M lbs) Economics 1 47,050 12.4 7.0 • Initial capital: $108 M 2 47,050 12.4 7.0 • LOM operating cost: $56/t • Open pit: $11/t (1.9:1 strip ratio) 3 47,050 12.4 7.0 • Underground: $37/t 4 47,050 12.4 7.0 • Processing: $10.37/t 5 47,050 12.4 7.0 • Smelting/transport $US236/t con • Refining $0.61/lb Ni, $0.44/lb Cu 6 40,061 10.6 6.0 • US$10.00/lb Ni, $2.50/lb Cu, US$0.90 exch. 7 27,185 7.2 4.3 • LOM C1 cash cost/lb Ni net of Cu: US$3.55/lb • pre-tax NPV8%: $244 M 8 17,184 4.5 2.7 • pre-tax IRR: 65%
  • 11. Kenbridge - Metallurgy 2007/2008 – CRO contracts Xstrata Process Services to conduct test work including mineralogy characterization, locked cycle flotation tests and grinding circuit design Head grade Concentrate Assays Recoveries % Ni / % Cu %Ni %Cu %S %MgO %Ni %Cu %S Bulk Ni+Cu 0.88 / 0.37 11.52 5.25 31.4 3.5 89.8 93.3 49.3 Concentrate Feb. 2010 –XPS concludes test work on separate nickel and copper concentrates Head grade Concentrate Assays Recoveries % Ni / % Cu %Ni %Cu %S %MgO %Ni %Cu %S Nickel 14.07 0.97 34.1 1.4 83.7 13.69 46.9 Concentrate* 0.86 / 0.36 Copper 1.29 27.25 31.7 2.28 1.6 79.9 9.1 Concentrate* (*plus Co, PGE, Au, Ag credits)
  • 12. Timeline to production 2010 2011 2012 2013 Feasibility Permitting Road work Construction * Timmins projects offer opportunity to finance Kenbridge through feasibility and into production with the Company’s own cash flow and minimal requirement for equity financing
  • 13. Comparable Emerging Nickel Projects Pre-production Capital ($M) $1,600 $1,380 $1,400 $1,200 $1,200 $1,200 $1,000 $800 $600 $517 $400 $286 $200 $125 $150 $107 $- vik o t a in ge is e on kw ag ar ga om a id um pe in un as na r ok nb M es N D M r N Tu Ke ak Sh
  • 14. Regional Exploration Focus: Atikwa Greenstone Belt • Nickel/copper sulphides hosted in gabbro breccia intrusives similar to the Lynn Lake, Manitoba nickel camp. • Atikwa belt: 23 recorded nickel copper occurrences in a 220 km ring. •Under explored region. No serious nickel exploration since 1950’s
  • 15. Lynn Lake, Manitoba Geological Model: Comparable to Kenbridge Ni District - Multiple Deposits, mostly sub-surface Kenbridge, (superimposed) Lynn Lake, Manitoba (Sherritt Gordon Mines) North America’s 3rd largest nickel camp (1953-1976): (Source: Victory Nickel • 22 Mt @ 1% Ni, 0.5% Cu from 12 deposits; 8 of which were sub-surface Corp.)
  • 16. Regional Exploration Potential- Kenbridge Kenbridge North • Untested blind geophysical target Kenbridge
  • 17. Regional Exploration – Turtlepond Lake EM targets and recent drill results Night Danger (new discovery 2010): ND-09-01: 0.60% Ni, 0.42% Cu/2m Night Danger ND-09-02: 0.57% Ni, 0.44% Cu/9m ND-10-03: 1.02% Ni, 0.38% Cu/4m (Incl. 4.53% Ni, 0.08% Cu/0.7m) Emmons EM-09-07: 0.44% Ni, 0.44% Cu, 0.25 gpt PGE+Au/ 11.5m Double E (new Discovery 2010) EE-09-01: 1.35% Ni, 0.81% Cu, 0.94 gpt PGE+Au/2.0m EE-09-01: 0.55% Ni, 0.38% Cu, 0.28 gpt PGE+Au/4.8m EE-10-04: 0.52% Ni, 0.28% Cu, 0.29 gpt PGE+Au/1.9m EE-10-04: 0.51% Ni, 0.23% Cu, 0.21 gpt PGE+Au/1.9m
  • 18. Timmins Projects: Alexo and Kelex - History Kelex Alexo: Past producer: (Pre-2005) Kidd Met Underground: 57,000t @ 3.6% Ni, Site (4.5M lbs) (2004-2005 Arrow operated) Pit: 30,138t @ 1.93% Ni, (1.3M lbs) 400 km haul to Strathcona mill in Sudbury Put on temporary suspension in 2005 when nickel price fell below US$5/lb • Projects currently under review to re-start now that nickel at US$9/lb • Permits remain in place • Opportunity for rapid re-start, low capital outlay and quick pay-back
  • 19. NI 43-101 Resource Estimate Commissioned April 2010. View from below to south east: Mineralized zones in red, mined out pits in grey
  • 20. Kelex Deposit – West Bulk Zone Section 1280E Section 1272E Section 1265E
  • 21. Kelex Deposit – East Shrinkage Zones Section 1605E Section 1612E Section 1522E
  • 22. Kelex Deposit Long Section Facing North
  • 23. Regional Geology and Production Alexo & Kelex Kidd Creek Minesite Kidd Creek Metsite Past Resource Statistics Langmuir 1.6mt @ 2.1% Ni Redstone 1.2 @ 2.4% Ni Alexo 57,000t @ 3.6% Ni Timmins
  • 24. Tonnage and Grades Mined from Pit Operations Alexo: • 26,224t @ 1.97% Ni, 0.20% Cu Kelex: • 3,914t @ 1.68% Ni, 0.18% Cu Total Mining Operations (2004-2005) 30,138t @ 1.93% Ni, 0.23% Cu
  • 25. Alexo/Kelex Summary points Adv. Expl’n permits, closure plan and bond in place Rapid re-start possible Low capital start-up Untested conductors – exploration potential Advance Kenbridge through Timmins cash flow.
  • 26. Corporate Strategy Primary Objectives: • Re-start Alexo/Kelex, access early cash-flow at high metal prices: 6 months to 1yr • Use Alexo/Kelex cash flow to develop and construct the Kenbridge Nickel Project: 2-3 yrs • Add additional mineral resource inventory through acquisition and modern exploration Exploration potential • Kenbridge deposit is open in all directions; regional geophysics targets • Turtlepond projects: 5 separate nickel-copper occurrences including two new discoveries within 70 km of Kenbridge • Denmark Lake: 4 Ni/Cu occurrences including one new discovery within 30 km of Kenbridge • Arrow holds several drill ready Ni-Cu projects in Kenbridge and Timmins area Interim Corporate Focus • Complete Timmins evaluation • Secure capital requirement to recommence Timmins production • Complete feasibility study and permitting on Kenbridge Nickel Project • Expand Ni-Cu resources at Kenbridge and test regional targets • Seek out and acquire additional projects