Vancouver, BC / TNW-Accesswire / May 22, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce additional results from the 8000 metre Phase III drill program at the Chinchillas Silver Project in Jujuy province, Argentina. Of particular interest is hole CGA-107, which intercepted 105 metres with average grades of 1.6% zinc and 54 g/t silver starting at 127 metres depth. On a silver-equivalent basis this intercept is 105 metres grading 106 g/t silver equivalent. This hole is located in the North Slope area, 320 metres northwest of the main Socavon del Diablo Zone of the resource.
"These new holes have identified additional mineralization which will increase the silver resources at Chinchillas," commented Golden Arrow VP Exploration and Development Brian McEwen. "Furthermore, with the current positive market outlook for zinc we believe that results like those of hole 107 will enhance the value of the deposit, and provide us with another target type to explore on the property."
The Phase III drill program is designed to expand the existing resource at Chinchillas and explore new areas of the property. The results reported below indicate that drilling has successfully intersected significant new silver, lead and zinc mineralization that will contribute to the expansion of the project's current NI 43-101 resource estimate1. Based on these positive results, management is considering an increase to the Phase III drill program for a second time.
Highlights of the results include:
- 29 m averaging 107 g/t silver and 0.6% lead at 3 metres depth in CGA-100
- Including 6 m averaging 315 g/t silver and 0.8% lead
- 19 m averaging 151 g/t silver and 0.9% lead at 107 metres depth also in CGA-100
- 9 metres averaging 201 g/t silver and 0.6% lead at 41 metres depth in CGA-103
- 105 metres averaging 54 g/t silver and 1.6% zinc at 127 metres depth in CGA-107
- Including 18 metres averaging 179 g/t silver, 1.3% lead and 1.1% zinc
- And including 18 metres averaging 81 g/t silver and 3.7% zinc
- 71 metres averaging 120 g/t silver and 1.5% lead in CGA-108
- Including 6 metres averaging 335 g/t silver and 3.8% lead
- And including 4 metres averaging 446 g/t silver and 3.1% lead
The Phase III program plan initially included a minimum of 6000 metres of diamond drilling, and this was recently increased to 8000 metres, based on the positive results to date. Over 6500 metres has now been drilled, and holes represented in Table 1 below include 2204 metres of the completed drilling.
Drilling is expected to add resources at the Chinchillas deposit, which remains open in most directions and at depth, and where there are areas within the deposit that were not drilled at sufficient spacing to be included in the 2013 resource estimate.
The remaining holes in the program target several new areas throughout the property that were identified by the 2013 geophysics and surface mapping program, including an area over a kilometre to the southeast of the main resource zones.
Corebox(r) interactive 3-D models of the deposit and drill holes can also be found on the website, here and will be updated with these new intercepts. A map of the drill hole locations will also be posted to the Chinchillas map page on the Golden Arrow website.
Intercepts for ten drill holes (2204 metres) are reported in Table 1. The Silver Mantos Zone comprises the western portion of the deposit, while the Socavon comprises the eastern portion. The Mantos Basement Zone is situated approximately below the Silver Mantos Zone. These zones were described in detail as part of the NI 43-101 Technical Report and resource estimate1. The North Slope is a newer target area along the slope of the basin to the north of both the Silver Mantos and Socavon Zones.
Table 1. Drill Intercepts >20g/t for Ag and >0.5% for Pb and Zn
|TARGET / ZONE||HOLE||Note||From
|NORTH SLOPE||CGA-106||no significant mineralization|
|The reported intervals are believed to approximate true width except for CGA-107 for which further geologic interpretation is required. Widths will be confirmed with geologic modeling.|
Silver Mantos/Mantos Basement Targets
Drill holes CGA-100, -102 and -103 targeted expansion of the Silver Mantos Zone to the southwest, particularly where the basin shallows and the underlying Mantos Basement Zone starts at or near surface. Mineralization was encountered in all three holes and the results are expected to expand the resource in these areas. CGA-101 tested surface silver anomalies in a new brecciated zone just west of the Silver Mantos area but encountered only limited mineralization.
Holes CGA-108 and CGA-109 are also located in northwest part of the Silver Mantos area and targeted the extension of both the Silver Mantos and the Mantos Basement Zones to the north and at depth. Both holes successfully encountered mineralization that will extend the zones and build resources.
North Slope Targets
CGA-104 through -106 are located on the North Slope. CGA-106 was the northernmost and westernmost of the holes and returned no significant intercepts. Approximately 300 metres to the southeast, CGA-104 returned low grades of silver in basement rocks, with no lead and zinc. A further 180 metres to the southeast, CGA-105 returned six metres averaging 102 g/t silver and 0.5% lead at the basement contact, confirming that the model of mineralization occurring just below the Silver Mantos/Mantos Basement contact extends to the North Slope, and creating a target for further follow-up.
New High-Zinc Target
CGA-107 is also located on the North Slope, 320 metres north of the main Socavon del Diablo Zone of the resource. This hole targeted the margin of a coincident high chargeability and high resistivity anomaly. At approximately 135 metres depth (just below the contact with the upper Silver Mantos zone) the brecciated sandstone-pelite basement was encountered and mineralization became significant, including throughout interspersed dacite units. Values of zinc averaging 1.6% were returned through a 105 metre section, with an average grade of 54g/t silver over the same interval. Several higher grade intervals were included.
Previous drilling in the Socavon del Diablo Zone has returned high values of zinc mainly in the upper mantos-style mineralization. However, this 105 metre intercept in CGA-107 is the longest to host significant zinc-rich mineralization in the basement, and in particular through intermingled dacites. Initial interpretations indicate this may be an extension of the Socavon Zone, however, additional work is required to confirm the continuity. Whether it is continuous or part of a new zone, it represents a potential new target type at Chinchillas, where the zinc contributes significant value. For reference, Table 2 shows the calculated silver equivalent values of the reported intercepts.
Table 2. Drill Intercepts for Hole 107, including Silver Equivalent Grades
|HOLE||Note||From (metres)||To (metres)||Interval (metres)||Ag (g/t)||Pb (%)||Zn (%)||Ag Eq (g/t)|
|Silver Equivalent grades (AgEQ) were calculated using US$20/oz. for silver, US$0.94/lb. for lead and US$0.94/lb. for zinc.|
Methodology and QA/QC
Analyses of the drill core were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. All samples were analyzed by method ICP-MA-39 that consists of a four acid digestion followed by ICP-OES detection. Silver results >200 Ag g/t were re-analyzed by fire assay with a gravimetric finish on 50-gram samples. Lead and zinc results >10,000 ppm were re-analyzed by a 3 acids and ICP-OES detection. The Company followed industry standard procedures for the work carried out on the Chinchillas Project, 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. Golden Arrow detected no significant QA/QC issues during review of the data.
Table 3. Drill hole location and orientation data
About the Chinchillas Silver Project
Golden Arrow is earning a 100% interest in the Chinchillas Silver Project. After less than two years exploration, the Company announced a NI 43-101 resource estimate1 in 2013, including:
- 27.4 Moz silver / 32.6 Moz silver equivalent in Indicated Resources (7.2 Mt @ 119g/t silver, 0.57% lead, 0.48% zinc : 141g/t silver equivalent )
- 53 Moz silver / 72.2 Moz silver equivalent in Inferred Resources (21 Mt @ 78.5 g/t silver, 0.69% lead, 0.62% zinc : 107g/t silver equivalent)
The first NI 43-101 preliminary economic assessment2 returned an after-tax NPV 8% of US$98.5M, highlighting the benefits of the project's near-surface mineralization, conventional metallurgy and access to infrastructure. The deposit is open to expansion and Golden Arrow is now drilling to increase resources.
1 "Mineral Resource Estimate for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated June 20th, 2013.
2"Preliminary Economic Assessment for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated January 20th, 2014.
The contents of the news release have been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development to the Company, and a Qualified Person as defined in National Instrument 43-101.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The main focus is on advancing the flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the company to advance its Chinchillas Silver Project. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its other 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
Executive Chairman, President, CEO and Director
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of the Chinchillas project, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance as outlined in the PEA, including silver, lead and zinc production and planned work programs at Chinchillas. Statements concerning reserves and mineral resource estimates may also constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Chinchillas property is developed and, in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to fluctuations in the currency markets (particularly the Argentinean peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company's ability to raise financing and fund the development of the Chinchillas project pursuant to the PEA; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in a profitable mining operation at Chinchillas; risks related to mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral resources as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to the Chinchillas property being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; risks related to the Chinchillas property being located in Argentina, including political, economic, social and regulatory instability. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
The information provided in this news release addresses the Chinchillas PEA and is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.