Golden Arrow Options Purulla Porphyry Cu-Mo Project and Receives Royalty Payment from Gualcamayo
Golden Arrow Resources Corporation (GRG -- TSX.V) ("Golden Arrow" or the "Company") is pleased to announce that it has entered into an option agreement with a private Argentinean claim owner to earn an undivided 100% interest in the Purulla Porphyry Copper-Molybdenum (Cu-Mo) Project in Catamarca Province, Argentina. The Purulla Project includes two licenses totalling 5,000ha. Terms are summarized below.
The Company believes that a significant untested porphyry Cu-Mo target has been identified at Purulla. The project covers a 1,000m by 300m zone of leached quartz-iron oxide stockwork with intense argillic alteration and anomalous Mo-Cu within a broader zone of alteration. This alteration zonation, along with IP chargeability anomalies identified at depth, are consistent with the presence of a porphyry Cu-Mo system with potential for a significant supergene-enriched Cu zone at depth. The property is drill-ready with permits and targets for a 2010 drill program.
The Company is also pleased to announce that it has received $343,218 USD from Yamana Gold Inc. ("Yamana") for the quarter ended September 30, 2009 for its 1% net smelter returns royalty on Yamana's Gualcamayo gold mine, located in San Juan, Argentina. The next scheduled payment is to be made on January 31, 2010.
Geology and Mineralization:
The Purulla Cu-Mo porphyry property is located within a prominent NW-SE trending structural corridor along which several large Miocene-aged copper porphyries occur in NW Argentina and Chile (i.e. the Bajo de la Alumbrera Porphyry Cu-Au-Mo mine, NW Argentina and the El Salvador Cu-Mo mine, Chile).
The Purulla project is underlain by Palaeozoic meta-sedimentary basement rocks cut by Miocene-aged dioritic intrusions and capped by coeval volcanic flows at the intersection of prominent northwest and northeast trending strike-slip faults. A 1,000m long by 300m wide zone of intense argillic alteration with well-developed quartz-iron oxide stockwork is exposed at the base of a deeply incised creek. A larger envelope of less intense argillic and propylitic alteration is observed in both basement meta-sedimentary rock and the Miocene magatic rocks.
Geochemical sampling of the exposed quartz-iron oxide stockwork has returned strongly anomalous molybdenum (up to 381 ppm) with elevated copper (up to 272 ppm). Inverted chargeability readings from IP lines run over the zone suggest deep weathering of sulphides from surface down to 100-150m. This opens the possibility that original copper mineralization has been leached and remobilized downwards into a secondary enriched supergene zone, leaving little Cu but still significant Mo in surface outcrops. The strongly leached surface exposures with low Cu but significant Mo are characteristic of the large Chilean porphyry copper deposits Escondida, El Salvador and Potrerillos which occur in a similar environment.
Collectively the geological, geochemical and geophysical evidence suggest that Purulla is a large well developed and un-tested porphyry Cu-Mo target. The property is drill-ready with Environmental Impact Statements approved for drilling. Golden Arrow is currently in the process of collecting and integrating the pre-existing data, and is planning a drill program for 2010 to test for a potential supergene Cu zone and mineralized Cu-Mo porphyry at depth.
The agreement requires Golden Arrow to make payment of US$100,000 on signing (completed) and further payments totalling US$1,025,000 over three years to acquire 100% of the properties.
The contents of this News Release were prepared by Bruce Smith, AUSMIM, Golden Arrow's Exploration Manager and a Qualified Person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & C.E.O.
For further information please contact Joseph Grosso, President & CEO, or Corporate Communications at 1-800-901-0058, or 604-687-1828 or fax 604-687-1858.
The TSX Venture Exchange does not accept responsibility for the adequacy or the 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.