Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that it has been informed by Vale S.A. ("Vale") that it has commenced a 4,700 m drill program on the Company's Mogote copper-gold-silver porphyry/epithermal project in San Juan Province, Argentina.
The initial drill program will target both porphyry copper-gold and precious metal epithermal mineralized zones identified during Vale's 2010-11 field program. This drill program may be expanded, depending on initial drill results and the results of the surface exploration program.
The proposed 2011-2012 program has a surface exploration component that includes reconnaissance geological mapping and sampling, a 24 line km Induced Polarization ("IP") survey at Filo Este, Filo Central and Stockwork Hills at the southern end of the project area and 116 line km of ground magnetic and radiometric surveying at Filo Central and the Stockwork Hills zones.
Vale Exploracion Argentina S.A.is earning a 70% interest in Golden Arrow's Mogote and Purulla projects by completing $US 6.8 million in exploration expenditures and making $US 2.3 million in cash payments to Golden Arrow over 3 years, in addition to making underlying vendor payments of $US 1.025 million with regard to the Purulla project (see September 9, 2010 News Release).
The 100% owned 8,300ha Mogote copper-gold-silver porphyry/epithermal project is centrally-located in the prolific Vicuna District of northern San Juan Province which includes NGEx Resources Inc.'s Josemaria copper-gold deposit in Argentina and Goldcorp Inc./New Gold's El Morro gold-copper porphyry deposit in Chile. The Mogote property covers multiple large porphyry/epithermal targets. Most of the work to date on the property has focused on the Filo Este and Filo Central targets on the northern portion of the property where trenching and drilling intersected wide intervals of copper-gold-silver mineralization (i.e. 489.3m averaging 0.23 g/t gold, 2.6 g/t silver and 0.17% copper in MOG-04-1A*). Three additional targets in the south-central portion of the property, including the large Zona Colorida anomaly and Stockwork Hill, have seen only limited surface sampling prior to the recent work by Vale. Included in the agreement with Vale are additional claims totaling 3,150ha on the Chilean side of the international border adjacent to Mogote to cover potential extensions to mineralized zones.
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 Company is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan, Argentina, a joint-venture with Vale on two properties, an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in South America since 1993.
About Vale S.A.:
Vale is the second-largest metals and mining company in the world and the largest in the Americas, based on market capitalization. It is the world's largest producer of iron ore and iron ore pellets and the world's second-largest producer of nickel. Vale also produces copper, thermal and coking coal, phosphates, potash, cobalt and platinum group metals ("PGMs"). To support its growth strategy, Vale is actively engaged in mineral exploration efforts in 24 countries around the globe. Vale is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, 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.