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Golden Arrow Reports First NI 43-101 Resource Estimate at Chinchillas Silver-Lead-Zinc Project

May 9, 2013

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company) is pleased to announce its initial independent NI 43-101 compliant resource estimate for the Chinchillas silver-lead-zinc project in Jujuy, Argentina. The resource estimate includes 7.2 million tonnes grading 119 g/t silver, 0.57% lead and 0.48% zinc (32.6 million ounces silver equivalent (Ag Eq) at 141 g/t Ag Eq, and a 50g/t Ag Eq cut-off) in the indicated category, and a further 21 million tonnes grading 78 g/t Ag, 0.69% Pb and 0.62% Zn (72.2 million ounces Ag Eq at 107 g/t Ag Eq grade and 50 g/t Ag Eq cut-off) in the inferred category. (Refer to Tables 1 and 2 below for details.)

"The Company is thrilled to have completed its first NI 43-101 resource estimate of more than 100 million ounces of silver equivalent combined in indicated and inferred categories. Given that the deposit appears to be open in all directions, the Company is confident that the potential for the estimate to increase is high with the completion of the Phase 3 drill program planned for the third quarter of this year. The favorable geometry of the deposit for open pit mining, combined with our recently completed metallurgical test program, and good infrastructure should allow us to advance this to a preliminary economic evaluation quickly as we expand the resource estimate." stated Brian McEwen, VP Exploration and Development.

Exploration Program

The preliminary metallurgical report on samples from Chinchillas concluded, "The samples responded very well to sulphide flotation, with silver recoveries averaging 98.7%, accompanied by very high lead and zinc recoveries." (Please refer to the original news release dated May 6th, 2013).

Metallurgical test work is continuing to optimize the flow sheet with the goal of producing a separate high-grade silver-bearing lead concentrate and a zinc concentrate.

In addition, Golden Arrow is planning a third drill campaign at Chinchillas. This program will include both infill drilling to upgrade the existing resource categories, and exploration drilling to identify new resources. The existing zones appear to be open in all directions and at depth. High priority exploration targets include the north slope, where step-out holes identified strong mineralization as much as 200 metres north of the existing zones, and the source of the newly identified "Pirquitas-style" mineralization in the Basement zone.

Resource Model

Silver-lead-zinc mineralization included within the resource model occurs in two main areas at Chinchillas: the Silver Mantos and Socavon del Diablo Zones. The Silver Mantos zone is further sub-divided into three units based on host rock and geometry; Silver Mantos, Mantos Contact, and Mantos Basement zones.

Table 1. Mineral Resource Statement for the Chinchillas Project. May 9, 2013.

Resource Class/Zone Tonnage Ag Grade Pb Grade Zn Grade Ag Eq Grade Ag Pb Zn Total
  (Mt) (g/t) (%) (%) (g/t) (Moz) (Mlbs) Ag Eq (MOz) (Mlbs) Ag Eq (MOz) Ag Eq (MOz)
Indicated Resources
Silver Mantos 7.2 118.6 0.57 0.48 141.2 27.4 90.2 2.8 76.0 2.4 32.6
Total Indicated Resources 7.2 118.6 0.57 0.48 141.2 27.4 90.2 2.8 76.0 2.4 32.6
Inferred Resources
Silver Mantos 3.3 90.7 0.51 0.43 111.0 9.7 37.5 1.2 31.6 1.0 11.9
Mantos Contact 2.5 78.7 0.71 0.88 113.1 6.3 39.0 1.2 48.4 1.5 9.1
Mantos Basement 8.4 99.5 0.85 0.24 123.0 26.8 157.3 5.0 44.4 1.4 33.2
Socavon del Diablo 6.8 46.6 0.58 1.1 82.8 10.2 86.7 2.7 164.5 5.2 18.1
Total Inferred Resources 21.0 78.5 0.69 0.62 107.0 53.0 320.5 10.1 288.9 9.1 72.2


  1. Resources in Table 1 are reported at 50g/t silver equivalent cut-off, at $27/ ounce Silver, $0.85/ pound Zinc and $0.85/pound Pb at 100% recovery.
  2. Silver equivalent calculations were used because of the contribution to value that Pb and Zn add to the deposit, especially in the zinc-rich Socavon del Diablo Zone
  3. Golden Arrow has not completed an economic evaluation to calculate the cut-off grade. A cut-off grade of 50 g/t silver equivalent is used for reporting purposes as 50 g/t Ag is utilized by Silver Standard at their Pirquitas Mining operation located 30kms from Chinchillas.
  4. Totals may not add correctly due to rounding
  5. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
  6. The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these inferred resources as Indicated or Measured, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured category.

Table 2. Sensitivity of Resources to Grade Cut-Off

Resource Category Cutoff Ag Eq (g/t) Tonnes
Pb Grade
Zn Grade
Ag Eq Grade
Ag Eq (MOz) Zn
Ag Eq (MOz) Total
Ag Eq (MOz)
Indicated 40 8.1 109.5 0.53 0.44 130.5 28.4 94.4 3.0 78.4 2.5 33.9
  50 7.2 118.6 0.57 0.48 141.2 27.4 90.2 2.8 76.0 2.4 32.6
  60 6.4 128.2 0.61 0.51 152.3 26.2 85.6 2.7 71.5 2.3 31.2
Inferred 40 26.4 67.8 0.62 0.61 94.3 57.5 359.0 11.3 352.9 11.1 79.9
  50 21.0 78.5 0.69 0.62 107.0 53.0 320.5 10.1 288.9 9.1 72.2
  60 17.4 87.8 0.76 0.63 117.9 49.0 290.9 9.2 242.8 7.6 65.8

Methodology and QA/QC

The resource estimation was based on data from 76 drill holes comprising a total length of 10,500 metres of drilling completed by the Company to the end of March 2013, as well as 7 holes comprising a total length of 3,000 metres of drilling completed by previous operators of the project.

The samples were collected and analyzed in accordance with industry standard practice. Analyses of the drill core were performed by Alex Stewart Assayers, in Mendoza, Argentina, an ISO 9001:2008 and ISO14001: 2004 certified laboratory. All samples were analyzed by method ICP-MA-39 that consists of a four acid digestion followed by ICP-OES detection. Silver results greater than 200 Ag g/t were re-analyzed by fire assay with a gravimetric finish on 50-gram samples. Lead and zinc results greater than 10,000 ppm were re-analyzed by a 3 acid digestion and ICP-OES detection. A quality assurance/quality control (QA/QC) program following industry standard practices was incorporated with the assay program. It consisted of blank, duplicate and standard samples inserted into the drill core sample sequence sent to the laboratory for analysis.

The May 9, 2013 mineral resource estimate for the Chinchillas Project was prepared by Kyle Howie, MAIG, in consultation with Bruce Davis, FAusIMM of BD Resource Consulting Inc. The mineral resource estimate uses drill hole sample assay results and the interpretation of a geologic model that relates to the spatial distribution of silver in the deposit. Interpolation characteristics were defined based on the geology, drill hole spacing and geostatistical analysis of the data. Block grade estimates were done using Ordinary Kriging (OK) with a nominal block size measuring 5 metres long, 5 metres wide and 5 metres high. Resources are classified according to their proximity to sample data locations and are reported, as required under NI 43-101, according to the CIM Definition Standards for Mineral Resources and Mineral Reserves. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these inferred resources as Indicated or Measured, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured category.

A NI 43-101 Technical Report supporting disclosure of this mineral resource will be filed by Golden Arrow on SEDAR within 45 days of this press release.

Qualified Persons

The resource estimate and associated information in this news release was prepared by independent consultants to the Company, Mr. Bruce Davis, Ph.D. FAusIMM, of BD Resource Consulting Inc., and Mr. Kyle Howie, B.Sc., MAIG. The balance of the technical information has been prepared by Bruce Smith, Chartered Professional MAusIMM, consultant to the Company, and the contents of the news release has been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development to the Company. Mr. Davis, Mr. Howie, Mr. Smith and Mr. McEwen are Qualified Persons as defined in National Instrument 43-101.

About the Chinchillas Project

The Chinchillas project is located in the prolific Bolivian silver--zinc-tin belt which extends into northern Argentina. Golden Arrow has the option to earn a 100% interest in the Chinchillas project (details in GRG News Release dated August 3rd, 2011). The Company believes that Chinchillas has the potential to host a large silver-zinc-lead deposit. Chinchillas is a Tertiary aged maar diatreme volcanic complex that has erupted through the Paleozoic basement schists. The resulting depression or basin, filled with volcanic breccias and tuffs is more than 1.5km in diameter.

The Silver Mantos zone is situated in the western third of the basin. Shallow disseminated silver mineralization occurs within the volcanic breccias and tuffs. This is concentrated in two and locally three mineralized layers or "mantos" ranging between 2 and 48 metres thick, averaging 12 metres in thickness. In this Phase II drill program, a second style of mineralization has been identified in, and at the contact with, the Ordivician basement pelites and sandstones. This "Pirquitas-style" mineralization is characterized by silver, lead and zinc in structures and breccias within the basement schists, occurring beneath the volcanic hosts, as seen at Silver Standard's Pirquitas silver deposit located 30 kilometres southwest of Chinchillas (www.silverstandard.com).

The Socavon del Diablo zone is situated in the eastern third of the basin and mineralization was previously defined by drilling over an area of 3.5 hectares (250 m by 150 m). Mineralization includes mantos style within favourable shallow dipping volcanic tuff horizons and crosscutting feeder structures and hydrothermal breccias.

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 core 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.


"Joseph Grosso"


Mr. Joseph Grosso, Executive Chairman

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.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. 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.