Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") announces the completion of the 7 hole, 3695 m drill program by Vale Exploración Argentina S.A. ("Vale") on the Company's Mogote copper-gold-silver porphyry/epithermal project in San Juan Province, Argentina. Vale's drilling has confirmed the existence of a copper porphyry system below the large and prominent steam leached alteration zone at the Zona Colorida.
"We are very pleased in being partnered with a quality organization like Vale," stated Joseph Grosso, President & CEO. "We look forward to continuing to work together on Mogote, a project that exhibits potential for a significant discovery in a new emerging district."
The 100% owned 83 km2 (8,300 ha) Mogote copper-gold-silver porphyry/epithermal project is centrally-located in the prolific Vicuna District of northern San Juan Province which includes NGEx Resources Inc.'s Jose Maria copper-gold deposit in Argentina and Goldcorp Inc./New Gold's El Morro gold-copper porphyry deposit in Chile. The Mogote property covers multiple large porphyry/epithermal targets. Included in the agreement with Vale are additional claims totaling 31 km2 (3,150 ha) on the Chilean side of the international border adjacent to Mogote to cover potential extensions to mineralized zones.
Five widely spaced drill holes were completed at Zona Colorida with an average depth of 575 m. All holes encountered a multi-phase porphyry system with long intervals of intense quartz-pyrite vein stockworks and classic porphyry alteration, containing low grade copper mineralization. The best drill intercept recorded was in hole MGT DH5, from 68 m to 118 m (50 m interval) that averaged 0.224% copper.
Only one hole (MGT DH06) reached target depth of 576 m at Filo Central. Two additional holes, MGT DH07 and DH07A, reached 59 m and 185 m meters respectively. MGT DH07A ended in anomalous mineralization, and would be a target for extension in the following season. From 90 m to the end of hole at 185 m MGT DH07A graded 0.147% copper.
Several other targets at Mogote remain to be drill tested in future, including Stockwork Hill, 5 km south of Zona Colorida. Golden Arrow looks forward to continuing to work with Vale on the Mogote project in the coming year.
Vale is earning a 70% interest in Golden Arrow's Mogote project by completing $US6.8 million in exploration expenditures and making $US2.3 million in cash payments to Golden Arrow over 3 years. (See September 9, 2010 News Release).
Vale has notified Golden Arrow of its intention to terminate its option on the Purulla project in Catamarca (which formed part of the Mogote-Purulla JV agreement). Subsequently, Golden Arrow has given formal notice to the Purulla property vendor that it has terminated its option to earn an interest in the property.
The technical information contained in this release has been prepared by Bruce Smith, Chartered Professional MAusIMM Geologist and Golden Arrow's Exploration Manager and has been reviewed by Dr. Gerald G. Carlson, Ph.D., P.Eng., Head of Exploration for Golden Arrow, both Qualified Persons (QP) as defined in National Instrument 43-101.
The technical data was provided to Golden Arrow by Vale and the work was completed professionally to a high standard. Bruce Smith (Golden Arrow's QP) visited Mogote during the drill program, took several duplicate samples of the first drill holes and also inspected Vale's operations and procedures on-site. Analyses of the drill core were performed by ALS Chile, an internationally recognized assay service provider. Vale followed industry standard procedures for the work carried out at Mogote, with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the drill core sample sequence sent to the laboratory for analysis. No significant QA/QC issues were detected during the review of the data.
About Vale S.A.:
Vale is the second-largest metals and mining company in the world and the largest in the Americas, based on market capitalization. Vale is the world's largest producer of iron ore and iron ore pellets and the world's second-largest producer of nickel. Vale is one of the world's largest producers of manganese ore and ferroalloys. Vale also produce copper, thermal and metallurgical coal, phosphates, potash, cobalt and platinum group metals (''PGMs''). To support Vale's growth strategy, we are actively engaged in mineral exploration efforts in 27 countries around the globe. Vale operates large logistics systems in Brazil and other regions of the world, including railroads, maritime terminals and ports, which are integrated with our mining operations. In addition, Vale has a maritime freight portfolio to transport iron ore. Directly and through affiliates and joint ventures, we also have investments in energy and steel businesses. Vale is committed to transform natural resources into prosperity and sustainable development by operating with respect for the natural environment and being an ethically and socially responsible company. Vale's target is to be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer and prospect generator focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The Company is well positioned for growth of shareholder value with the pending sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold Mine to Premier Royalty for $17.75 million pending shareholder approval (details in GRG News Release dated May 24th, 2012), ongoing drilling at the advanced Chinchillas Silver project, an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in Argentina where it is highly regarded and trusted since 1993.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & CEO
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This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including the closing of the acquisition of the Royalty. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Premier Gold's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.