Vancouver, BC / TNW-Accesswire / Apr 24 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce results from the first seven holes of the 6000 metre Phase III drill program at the Chinchillas Silver Project in Jujuy province, Argentina.
"We are excited by these initial results from the Phase III exploration program. Some of the targets that have been drilled were based on geophysics. The fact that we have had success with this method gives us confidence that we will be able to build on our existing resource at Chinchillas with other similar targets. Management has now approved increasing the program to 8,000 metres, with most of the additional drilling directed at new targets". Joseph Grosso, President & C.E.O.
The Phase III drill program is designed to expand the existing resource at Chinchillas. The results reported below indicate that drilling has successfully intersected significant new silver, lead and zinc mineralization not reported in the projects current NI 43-101 resource estimate1. Highlights of the results include:
- 54 m at 290 g/t silver, 1.8% lead and 0.5% zinc at 130m depth in CGA-93,
- Including 4m @ 882 g/t silver, 3.3% lead and 1.3% zinc
- And also 5m @ 1172g/t silver, 4.2% lead and 1.4% zinc
- 13 m at 359 g/t silver, 2.4% lead at 199m depth also in CGA-93
- 43 m at 181 g/t silver, 1.3% lead at 106m depth in CGA-94
- 44 m at 102 g/t silver, 0.8% lead and 0.8% zinc at 11m depth in CGA-95
- Including 13m @ 218 g/t silver, 1.4% lead and 1.1% zinc
- 28 m at 105 g/t silver, 1.2% lead and 0.8% zinc at 157m depth in CGA-98
"Results from these holes represent expansion of the known mineralization," commented Golden Arrow VP Exploration and Development Brian McEwen. "We believe this will continue to be the case based on visual estimates of mineralization in the core from which results are pending, including from new targets that are over a kilometre from the existing resources."
The Phase III program plan initially included a minimum of 6000 metres of diamond drilling, and this has now been increased to 8000 metres. To date, 4200 metres has been completed, and the holes highlighted in Table 1 below include 1382 metres of the completed drilling.
The Chinchillas deposit remains open to expansion in most directions and at depth, and there are areas within the deposit that were not drilled at sufficient spacing to be included in the 2013 resource estimate. Approximately 3700 metres of drilling in this program aims to expand the existing resources.
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.
The following is the map associated with this drill program. 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.
Drilling Highlights
Intercepts for the first seven drill holes (1382 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.
Holes CGA-93 and CGA-94 are on the western margin the Silver Mantos area. These holes were targeted to intersect mineralized brecciated schist basement rocks. The intersection of additional high-grade silver, lead and zinc mineralization over thick widths is expected to increase the Silver Mantos and Mantos Basement resources in this area.
Holes CGA-95 and CGA-96 were collared near the centre of the Silver Mantos area. Their main target was the deep eastern extension of the Mantos Basement Zone as well as providing infill drilling for the Silver Mantos. CGA-95 encountered good mineralization in the Silver Mantos Zone that will help build resources, with over 100g/t silver in a 44-metre near-surface intersection and again in a 9-metre intersection at approximately 200 metres depth that also included lead and zinc. Eighty-eight metres to the southeast, hole CGA-96 was terminated in mineralization at 194 metres depth, prior to reaching the target contact with the basement due to the jamming of drill rods and casing. The drill company has agreed to re-drill this hole later in the program.
Hole CGA-97 was drilled to test a northwest extension of the main Socavon zone. It returned moderate grades and intervals.
Hole CGA-98 targeted the western continuation of a deep mineralization feeder zone in the basement, at the north end of the Socavon Zone. This was previously encountered by hole CGA-71 situated 50m to the east (see News Release dated March 14, 2013). The structure and associated mineralization was successfully identified, including an intersection of 28 metres of greater than 100g/t silver, 1.2% lead and 0.8% zinc. No basement mineralization from this area was included in the 2013 resource estimate and the area will now be a target for infill drilling and resource expansion.
Hole CGA-99 was the first hole from this campaign to target the North Slope, with moderate results, as it encountered a previously unidentified dacite body. Phase II drill holes in this area include CGA-59 and CGA-75, approximately 100 and 50 metres to the north-northwest respectively, both of which encountered silver mineralization. (See news releases dated February 7, 2013 and March 14, 2013.)
| TARGET/ZONE | HOLE | Note | From (metres) |
To (metres) |
Length (metres) | Ag g/t |
Pb % |
Zn % |
|---|---|---|---|---|---|---|---|---|
| SILVER MANTOS | CGA-93 | 73 | 75 | 2.0 | 36 | - | - | |
| 80 | 81 | 1.0 | 31 | |||||
| 88 | 96 | 8.0 | 39 | - | - | |||
| 109 | 113 | 4.0 | 103 | 0.7 | - | |||
| MANTOS BASEMENT | CGA-93 | 130 | 184 | 54.0 | 290 | 1.8 | 0.5 | |
| includes | 132 | 136 | 4.0 | 882 | 3.3 | 1.3 | ||
| includes | 141 | 146 | 5.0 | 1172 | 4.2 | 1.4 | ||
| 189 | 191 | 2.0 | 48 | - | - | |||
| 199 | 212 | 13.0 | 359 | 2.4 | - | |||
| includes | 208 | 210 | 2.0 | 1216 | 7.3 | - | ||
| SILVER MANTOS | CGA-94 | 5.5 | 28 | 22.5 | - | 0.6 | - | |
| 34 | 43 | 9.0 | 113 | 0.7 | - | |||
| MANTOS BASEMENT | CGA-94 | 106 | 149 | 43.0 | 181 | 1.3 | - | |
| SILVER MANTOS | CGA-95 | 11 | 55 | 44.0 | 102 | 0.8 | 0.8 | |
| includes | 26 | 39 | 13.0 | 218 | 1.4 | 1.1 | ||
| 67 | 73 | 6.0 | 84 | - | - | |||
| 178 | 183 | 5.0 | - | - | 0.8 | |||
| 183 | 191 | 8.0 | 42 | 0.6 | 0.9 | |||
| 197 | 206 | 9.0 | 110 | 1.0 | 0.6 | |||
| SILVER MANTOS | CGA-96 | 12 | 18 | 6.0 | - | - | 1.7 | |
| 18 | 37 | 19.0 | 42 | 0.6 | 1.3 | |||
| 58 | 67 | 9.0 | 47 | - | - | |||
| 112 | 117 | 5.0 | 23 | 0.5 | 1.3 | |||
| 143 | 144 | 1.0 | 47 | 1.5 | 1.7 | |||
| 165 | 169 | 4.0 | - | - | 0.8 | |||
| 176 | 194.3 | 18.3 | 78 | 1.2 | 1.2 | |||
| SOCAVON | CGA-97 | 20 | 23 | 3.0 | 74 | 0.5 | 0.7 | |
| 23 | 35 | 12.0 | - | - | 1.0 | |||
| 35 | 37 | 2.0 | 41 | 1.2 | 2.8 | |||
| 52 | 55 | 3.0 | 24 | 0.5 | 0.9 | |||
| 61 | 66 | 5.0 | - | - | 1.0 | |||
| 127 | 129 | 2.0 | 27 | - | - | |||
| SOCAVON BASEMENT | CGA-98 | 4.6 | 11 | 6.4 | - | - | 0.9 | |
| 93 | 94 | 1.0 | 195 | 3.7 | - | |||
| 128 | 135 | 7.0 | 76 | 1.2 | 0.7 | |||
| 157 | 185 | 28.0 | 105 | 1.2 | 0.8 | |||
| 189 | 191 | 2.0 | 36 | 0.7 | 0.8 | |||
| 199 | 221 | 22.0 | - | - | 0.5 | |||
| NORTH SLOPE | CGA-99 | 96 | 97 | 1.0 | 47 | 1.5 | - | |
| 104 | 105 | 1.0 | 38 | 0.7 | 0.7 | |||
| True widths have not yet been calculated. | ||||||||
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.
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.
| NAME | EASTING | NORTHING | ELEVATION | AZIMUTH | INCLINATION | DEPTH |
|---|---|---|---|---|---|---|
| CGA-93 | 3472584 | 7512438 | 4126 | 0 | -90 | 251.0 |
| CGA-94 | 3472517 | 7512419 | 4127 | 280 | -80 | 200.5 |
| CGA-95 | 3472767 | 7512303 | 4123 | 0 | -90 | 250.0 |
| CGA-96 | 3472803 | 7512224 | 4134 | 0 | -90 | 194.3 |
| CGA-97 | 3473520 | 7512301 | 4070 | 0 | -90 | 143.5 |
| CGA-98 | 3473792 | 7512267 | 4067 | 10 | -60 | 221.0 |
| CGA-99 | 3473566 | 7512438 | 4091 | 340 | -75 | 121.5 |
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 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
"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.