Golden Arrow Options Two Projects to Vale
Golden Arrow Resources Corporation (GRG - TSX.V) ("Golden Arrow"
or the "Company") is very pleased to announce that it has entered into
an option agreement with Vale Exploracion Argentina, S.A. ("VEASA"), a
wholly-owned subsidiary of Vale S.A. ("VALE"), on its Mogote
copper-gold-silver porphyry/epithermal project in San Juan Province and
its Purulla copper-moly porphyry project in Catamarca Province,
Under the terms of the option agreement Vale can earn an initial 70%
interest in the 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. If Vale elects to
drop one of the two properties during the option, the overall terms will
remain the same with the exception that if Purulla is dropped Vale will
no longer be responsible for making the underlying vendor payments.
Vale has the option to increase its interest to 85% by funding and
delivering a Feasibility Study within a further 3 year period.
Subsequently Vale will have the option for a further 2 years to purchase
Golden Arrow's remaining 15% interest in the project for fair market
value. Golden Arrow will retain a 1.5% Net Smelter Royalty (NSR) of
which Vale will have the option to purchase 0.5% for $US 7.0 million.
Vale will be the operator during the term of the option. The exploration
programs will be decided upon by a management committee comprised of
one representative from each company. The option agreement includes a
firm commitment by Vale to complete $US 800,000 in exploration
expenditures and make $US 125,000 in vendor payments during the first
"This is a very good deal for both parties as it will accelerate the
advancement of two of Golden Arrow's highly rated projects. I am
delighted that our team has successfully negotiated this agreement with
one of the most respected mining companies in the world," stated Joseph
Grosso, President and C.E.O.
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 aditional targets in the central-southern portion of
the property, including the large Zona Colorida anomaly, have seen only
limited surface sampling. Golden Arrow recently applied for additional
claims totaling 3,150ha on the Chilean side of the international border
adjacent to Mogote to cover potential extensions to mineralized zones.
Golden Arrow holds an option to earn a 100% interest in the 5,000ha
Purulla copper-moly project in Cajamarca Province. The project is
located within a prominent NW-SE trending structural corridor that
includes the Bajo de la Alumbrera porphyry copper-gold-moly mine 150km
to the southeast and the El Salvador porphyry copper-moly mine in Chile
160km to the northwest. The Company believes that a significant
untested porphyry Cu-Mo target has been identified at Purulla which
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 high-grade
supergene-enriched Cu zone at depth. The property is drill-ready with
permits in place.
About Golden Arrow Resources Corporation:
Golden Arrow 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, which has paid the Company US$ 1,878,700
over the past 20 months, an attractive portfolio of highly prospective
exploration projects, a pipeline of new opportunities under review and
only 35.6 million shares issued and outstanding. 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 the Grosso Group, a
management company specializing in resource exploration for over 17
About Vale Exploracion Argentina S.A.:
VEASA is a wholly-owned subsidiary of VALE, the world's second largest
mining company by market capitalization with its headquarters in Brazil.
VALE reported operating revenues of US$23.9 billion and net earnings of
US$5.3 billion as of December 31, 2009. 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.
About Grosso Group Management Ltd.:
Grosso Group is a management group founded in 1993 and is recognized as a
leading pioneer of mineral exploration in Argentina and Peru. The Group
operates with the objective of creating investor value through the
growth of its affiliated companies which include: Golden Arrow Resources
(TSXV: GRG), Golden Alliance Resources (TSXV: GLL), Blue Sky Uranium
(TSXV: BSK), Windstorm Resources (TSXV: WSR) and Panthera Exploration
(TSXV: PNX). For more information, please visit our website at:
ON BEHALF OF THE BOARD
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & C.E.O.
*Panthera Exploration Inc. April 29, 2004 News Release
For further information please contact Joseph Grosso, President &
CEO, or Investor Relations at 1-800-901-0058, or 604-687-1828 ext.248,
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.