Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results of the final 19 drill holes from the 35 hole Phase II program at the Chinchillas silver project in Jujuy, Argentina, 30 kilometres northeast of Silver Standard Resources Inc.'s Pirquitas silver mine and 85 kilometres north of Glencore International plc's Aguilar silver-lead-zinc mine. Golden Arrow has drilled 13,500 meters (76 holes) during Phase I and II drilling. The mineralized zone begins at surface and continues at depth and remains open to expansion at depth and to the north, east and west.
Drilling highlights include:
- 108m @ 125 g/t Ag, 1.2% Pb in CGA-77, including:
- 3m @ 712 g/t Ag, 7.7% Pb
- And 10m @ 308 g/t Ag, 1% Pb and 0.7% Zn
- 20m @ 379 g/t Ag, 2.1% Pb in CGA-89, including:
- 3m @ 1593 g/t Ag, 2.2% Pb
- 93m @182 g/t Ag, 1.4% Pb, 0.5% Zn, in CGA-90 including:
- 2m @ 2614 g/t Ag, 5.3% Pb, 1.6% Zn
The Company's Phase II drill program at Chinchillas has successfully concluded, with a total of 7,286 metres completed. Results from the program will be combined with results from the previous 41 drill holes, for a total of over 13,500 metres of drill data. This data will be used to define the first NI 43-101 compliant silver-lead-zinc resource and complete the associated technical report, which is underway. The technical report will include the results of metallurgical testing, for which the final results are pending. A Phase III drill program is also being planned, and will proceed following the completion of the resource estimate work.
"We are excited with these results which expand the known mineralization by as much as 220 metres from the previously defined Silver Mantos zone, and indicates a large high grade silver area in the basement of the zone, which will be included in our next drill program." stated Brian McEwen, VP Exploration and Development.
The latest drill results continue to expand the Silver Mantos zone to the west, southwest and south. Drilling encountered both near-surface disseminated manto-style mineralization hosted within volcanics and Pirquitas-style breccias and infill mineralization associated with feeder structures within the basement schists.
At Silver Mantos, drill hole CGA-77 tested the feeder zone to mineralization, and successfully encountered 108 metres at 125 g/t silver and 1.3% lead with three higher grade intersections, including 3 metres at 712 g/t silver and 7.7% lead. Hole CGA-88 stepped out 65 metres from the zone, and intersected 60 metres at 104 g/t silver and 1.1% lead, and includes a section in the basement rocks of 3 metres at 905 g/t silver and 4.8% lead. The western step-out holes returned the highest grade silver results of the Phase II program: CGA-89 stepped out 75 metres and had several long intersections of silver, most notably 20 metres at 379 g/t silver and 2.1% lead, including 3 metres with 1593 g/t silver and 2.2% lead. CGA-90 approximately 100 metres north of CGA-89 and stepped out 65 metres from the previously defined zone, returned 93 metres at 182 g/t silver, including 2 metres at 2614 g/t silver, 5.3% lead and 1.6% zinc.
Preliminary modeling of all drill data indicates that holes CGA-88; -77; -89; -60; -45; -90 confirm an area of 160 metres by 200 metres of high grade silver in the basement. This northeast-southwest corridor is open to expansion along strike and at depth.
Table 1 summarizes the highlights from the latest 19 drill holes. A map showing locations is available at http://www.goldenarrowresources.com/Chinchillas .
Table 1. Highlights of Drill Results
|CGA-78||275m SW drilled off target||no significant mineralization|
|CGA-79||150m SW step-out||82||87||5||137||1.0|
|CGA-81||50m S step out||20||22||2||39||0.8||3.0|
|CGA-82||50m S step-out||10||18||8||69||0.6|
|CGA-83||190m NW step-out||No significant mineralization, hole incomplete.|
|CGA-86||80m SW step-out||119||125||6||171||0.8|
|CGA-87||210m SW step-out||6||25||19||101|
|CGA-88||65m SW step-out||24||34||10||100||0.6|
|CGA-89||75 m W step-out||3||41||38||67||0.7||1.3|
|CGA-90||65m W step-out||72||165||93||182||1.4||0.5|
50m E step-out
|CGA-67||55m W step-out||58||74||16||1.2|
|230m W Socavon||155||187||32||0.8|
|CGA-92||re-drill of CGA-51||35||47||12||113||1.7||1.6|
Intercepts are calculated using a cut-off grade of 20g/t for Ag and 0.5% for Pb and Zn. True widths have not yet been confirmed, pending completion of the geological model.
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 Golden Arrow's 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 diatreme volcanic complex that has erupted through the Paleozoic basement schists. The resulting depression or basin, filled with volcanic breccias and tuffs is at least 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" 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 Inc.'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.
The technical information contained in this release has been prepared by Bruce Smith, Chartered Professional MAusIMM Geologist and Golden Arrow's Exploration Manager and has been reviewed by Brian McEwen, P.Geol., VP Exploration and Development, both Qualified Persons as defined in National Instrument 43-101.
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
|Hole ID||Easting||Northing||Elevation (m)||Azimuth||Depth||Total Length (m)|
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer and prospect generator 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 will be on advancing its flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the company to drill its Chinchillas Silver Project over the coming months with the aim of publishing the first NI43-101 resource calculation on Chinchillas in the first half of 2013. 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
"Carlos H. Fernandez Mazzi"
Mr. Carlos H. Fernandez Mazzi, President & CEO
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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.