Vancouver, BC / TNW-Accesswire / May 29 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that five exploration drill holes at the Chinchillas Silver Project in Jujuy province, Argentina have encountered significant mineralization over a previously untested wide-spread area up to 1.5 kilometres away from the existing resource.
"To have all five holes hit significant mineralization, spanning over forty hectares of this previously undrilled zone on Chinchillas, is very exciting," commented Golden Arrow VP Exploration and Development Brian McEwen. "This area represents two-thirds of our land holdings at the project and it remains under-explored, so we are eager to follow up with more drilling to outline new resource targets here."
"We are pleased to see increased zinc in these recent exploration holes, as it provides the potential to enhance the value at Chinchillas," stated Mr. McEwen. "Zinc is an important credit in other deposits in the Bolivian silver belt, such as San Cristobal mine, which is one of the world's largest silver producers and states reserves of over 280 million tonnes grading 1.41% zinc, 53.0 g/t silver and 0.48% Pb."
The five holes drilled represent targets located between 300 metres and up to 1.5 kilometres away from the existing resource zones. Four of the five holes are mineralized starting near surface (~50 metres depth) and down the length of the hole, and remain open at depth. Mineralization includes silver, lead and zinc, with zinc predominant in most holes.
Highlights of the results include:
- CGA-110: 17 metres averaging 0.5% lead and 3.4% zinc (126 g/t AgEq) at 218 metres depth
- CGA-113: Returned forty-one intercepts over 381 metres, including:
- 15 metres averaging 181 g/t silver, 1.1% lead (216 g/t AgEq) at 308 metres depth
- Including 1 metre grading 2031 g/t silver, 9.5% lead
- CGA-114: 45 metres averaging 0.8% zinc at 91 metres depth in CGA-114, including several higher grade intercepts such as:
- 3 metres averaging 70g/t silver, 1.1% lead and 1.5% zinc (154 g/t AgEq)
The Phase III drill program is designed to both increase the existing resources at the Chinchillas deposit and explore new areas of the properties. The program initially included a minimum of 6000 metres of diamond drilling, and this has been twice increased for a new total of up to 9000 metres, based on the positive results to date. Over 7500 metres has now been drilled, and holes represented in Table 1 below include 1640 metres of the completed drilling.
Corebox® 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.
In July 2013 Golden Arrow announced the successful acquisition and drill permitting of its second concession at the Chinchillas project, "Chinchilla I". (See News Release dated July 24, 2013.) This property is contiguous with the original concession ("Chinchilla") and more than twice the size. The 2013 exploration field program included surface mapping, sampling and magnetics, CSAMT and IP / Resistivity geophysics on part of the property that is situated to the south of Chinchilla. The program identified several new drill targets that are part of the Phase III program.
South Dome Targets
The southern edge of the basin hosting the Chinchillas deposit is ringed by series of outcropping dacite domes, situated approximately on the boundary of the Chinchilla-Chinchilla I properties. The 2013 field program identified several targets in and around these in an area being called "South Dome". (See map for location.)
Hole CGA-110 is located on the Chinchilla property, just north of the boundary with Chinchilla I. It was drilled to the northwest towards the Socavon del Diablo zone and it was expected to drill into one of the dacite domes and through sub-outcropping brecciated tuffs where the surface sampling had returned up to 288 g/t silver. However, the hole remained in basement material nearly the entire length, and encountered a thick intersection of high zinc and lead towards the bottom. This mineralization could be continuous with deep intersections in the Socavon zone, however additional drilling will be required to confirm this.
Holes CGA-113 and 114 are situated approximately 770 and 600 metres west-southwest of CGA-110, respectively. These holes tested a large area where surface mapping identified brecciated basement-style material starting at surface. CGA-113 was mineralized in short intervals throughout the hole, with galena, sphalerite and siderite returning 41 intercepts over 381 metres. CGA-114 was a shorter hole but also encountered silver, lead and zinc throughout brecciated basement pelites. Zinc was pervasive, including through a 45 metre interval averaging 0.8%. This interval contained several other shorter sections with significant silver and lead.
Based on the success of these three holes, the Phase III program will include two additional holes in the South Dome area.
Pascua Area Targets
The furthest southern targets on the Chinchillas project have been grouped into the Pascua area, and were delineated based on large geophysical anomalies with no detectable surface expression. CGA-111 is collared more than a kilometre south of the Socavon del Diablo resource zone, and CGA-112 is a further 400 metres south. Similar to -113 and -- 114, both holes were mineralized throughout the brecciated basement rocks, including proliferate microveinlets of sphalerite, galena and siderite.
Based on the success of these holes, the Phase III program will include an additional two holes in this area.
Table 1. Drill Intercepts >20g/t for Ag and >0.5% for Pb and Zn
|TARGET||HOLE ID||NOTES||FROM (metres)||TO (metres)||Interval (metres)||Ag (g/t)||Pb (%)||Zn (%)||Ag Eq. (g/t)|
The reported intervals are believed to approximate true width and will be confirmed with geologic modeling.
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 2. 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
For further information please contact:
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.