Vancouver, BC / TNW-Accesswire /June 25, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results from four additional drill holes in the Phase IV drilling campaign at the Chinchillas silver-lead-zinc deposit in Jujuy Province, Argentina. All four holes encountered significant silver, lead and zinc intercepts, with hole CGA-170 reporting an interval of 30 metres averaging 250 g/t silver equivalent that included a five metre intercept averaging 997 g/t silver equivalent.
"We were pleased with these results as they show significant silver mineralization in the eastern basement zone which previously had not been tested" commented Golden Arrow VP Exploration and Development, Brian McEwen. "The resources in this area should increase, along with the other areas within Chinchillas that have been tested by this drill program, when we update our resource estimate this summer."
The Phase IV drill program has included approximately 11,200 metres of diamond drilling to date. The program goals include: testing the limits of the deposit in all directions, including at depth; in-filling drill hole-spacing to facilitate the upgrade of the resource categories to Measured and Indicated; and drilling for infrastructure and geotechnical studies. Approximately 5,000 metres of the planned program remains to be drilled.
Table 1 below includes the results from three complete drill holes, plus approximately the first half of hole CGA-181 (approximately 250 metres). A map of the drill hole locations will be posted to the Chinchillas map page on the Golden Arrow website at: http://www.goldenarrowresources.com/assets/news/2015-06-25_NR.jpg. Interactive 3-D models of the drill holes are also available on the Golden Arrow website and at www.corebox.net.
Drill Hole Details
Mineralized intercepts are reported in Table 1. The western portion of the Chinchillas deposit includes the upper Silver Mantos zone and lower Mantos Basement zone. The eastern portion of the deposit includes the upper Socavon del Diablo ("Socavon") zone, and the lower Socavon Basement zone. The zones are all part of a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the central part of the vent (Silver Mantos and Socavon zones) and brecciated the underlying Ordovician basement schists (Mantos Basement and Socavon Basement zones). Silver-lead-zinc mineralization in the upper zones is disseminated within thick mantos (layers), and in the lower zone is mainly within the fractures of the breccias. The zones are described in detail in the most recent NI 43-101 Technical Report, filed on SEDAR on February 15th, 2015. Drill core from these holes was subject to visual inspection and qualitative analysis using a hand-held X-ray fluorescence (XRF) spectrometer for silver, lead and zinc. Based on these results, intervals deemed to have low or no mineralization had pulps composited by the laboratory prior to analysis, using equal masses, with the resulting composite samples representing 2 to 6 metre intervals.
Socavon Basement Targets
The four holes reported here targeted extensions of the mineralized basement rocks in the Socavon Basement unit to the east (CGA-170, CGA-172 and CGA-181) and to the north (CGA-173). Similar to the western part of the deposit, in the Socavon Basement the pelites and sandstones have sheeted veinlets, crackle zones and lesser breccias filled with base metal sulphides, silver and siderite.
Holes CGA-170 and CGA-172 were drilled toward the southeast. CGA-170 cut a wide zone of high grade breccias in the basement, with 30 metres averaging 176 g/t silver and 1.5 % lead, including five metres averaging 749 g/t silver, 5.7 % lead and 2.0 % zinc (see Table 1 below). Hole CGA-172, at 57 metres to the NE of CGA-170, hit low grade mineralization from 132 to 145 metres deep. However, CGA-181 was located 78 metres northwest of hole CGA-170, and drilled in a westerly direction toward the dacite dome where it intercepted a high grade zone of 12 metres averaging 128 g/t silver, 0.7 % lead and 0.5 % zinc included in an envelope of lower grade mineralization from 102 to 240 metres deep.
Hole CGA-173 is one of three holes drilled to test the northern extent of the Socavon basement. The other two holes have assays pending and are not included in this release. CGA-173 is located 50 metres north from the previously planned Socavon pit and was drilled towards the north. The hole intercepted a dacitic dike intruded at the contact between the tuffs and the lower basement. The dike has galena and siderite filling breccias and veinlets with several mineralized intervals at a depth of 61 to 86 metres. The hole was ended prematurely due to technical problems with the drilling, and finished in mineralized basement material with an interval of 8 metres averaging 62 g/t silver.
All four holes are expected to contribute to an expansion of the Socavon Basement zone in the updated resource estimate that will be completed once the final assays from the program have been received.
| TARGET | HOLE | Note | From (m) | To (m) | Length (m) | Ag (g/t) | Pb (%) | Zn (%) | AgEq (g/t) |
|---|---|---|---|---|---|---|---|---|---|
| Socavon Basement | CGA-170 | 150 | 180 | 30 | 176 | 1.5 | 0.8 | 250 | |
| includes | 171 | 176 | 5 | 749 | 5.7 | 2 | 997 | ||
| 180 | 189 | 9 | 1 | 32 | |||||
| 192 | 194 | 2 | 83 | 2.7 | 0.6 | 189 | |||
| 197 | 199 | 2 | 40 | 1 | 72 | ||||
| 213 | 215 | 2 | 35 | 5.1 | 199 | ||||
| 217 | 223 | 6 | 0.5 | 16 | |||||
| 251 | 253 | 2 | 102 | 1.4 | 1 | 179 | |||
| 262 | 271 | 9 | 1 | 32 | |||||
| 294 | 297 | 3 | 36 | 1.3 | 78 | ||||
| 300 | 303 | 3 | 5 | 5 | |||||
| Socavon Basement | CGA-172 | 132 | 134 | 2 | 0.6 | 19 | |||
| 134 | 136 | 2 | 47 | 1.7 | 0.8 | 128 | |||
| 136 | 142 | 6 | 0.7 | 23 | |||||
| 142 | 145 | 3 | 39 | 0.5 | 55 | ||||
| 173 | 174 | 1 | 36 | 1.2 | 75 | ||||
| 214 | 230 | 16 | 36 | 0.9 | 65 | ||||
| Socavon del Diablo | CGA-173 | 37 | 43 | 6 | 24 | 24 | |||
| 61 | 65 | 4 | 45 | 45 | |||||
| 71 | 72 | 1 | 37 | 1.4 | 82 | ||||
| 74 | 80 | 6 | 54 | 1.4 | 99 | ||||
| Hole ended prematurely | 83 | 86 | 3 | 34 | 0.6 | 53 | |||
| 99 | 107 | 8 | 62 | 62 | |||||
| Socavon Basement | CGA-181 | 102 | 118 | 16 | 0.7 | 23 | |||
| 119 | 123 | 4 | 25 | 0.5 | 0.5 | 57 | |||
| 126 | 136 | 10 | 26 | 0.8 | 0.6 | 71 | |||
| 140 | 144 | 4 | 43 | 0.6 | 62 | ||||
| 153 | 156 | 3 | 0.5 | 16 | |||||
| 161 | 168 | 7 | 27 | 0.6 | 0.6 | 66 | |||
| 176 | 188 | 12 | 128 | 0.7 | 0.5 | 167 | |||
| 188 | 198 | 10 | 27 | 0.5 | 43 | ||||
| 203 | 209 | 6 | 30 | 0.5 | 46 | ||||
| 218 | 219 | 1 | 40 | 40 | |||||
| 224 | 240 | 16 | 26 | 0.6 | 45 | ||||
| 246 | 253 | 7 | 0.5 | 16 | |||||
| The reported intervals are believed to approximate true width and will be confirmed with geologic modeling. Silver equivalent grades (Ag Eq) were calculated using US$22/oz for silver, US$1.00/lb for lead and US$1.00/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 follows 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.
| Hole | Easting | Northing | Elevation (m) | Azimuth (deg) | Inclination (deg) |
Final Depth (m) |
|---|---|---|---|---|---|---|
| CGA-170 | 3473920 | 7512100 | 4092.82 | 140 | -50 | 400 |
| CGA-172 | 3473975 | 7512122 | 4081.42 | 136 | -50 | 232 |
| CGA-173 | 3473671 | 7512356 | 4066.78 | 0 | -65 | 107 |
| CGA-181 | 3473861 | 7512151 | 4090.74 | 270 | -70 | 499 |
Qualified Persons
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 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
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso
Executive Chairman, President, CEO and Director
For further information please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com
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.
FORWARD-LOOKING STATEMENTS
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.