Golden Arrow Update from President
Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to provide an overview of the Company's strategy and upcoming activities planned for 2012 and beyond.
Vision for the Current Times
Last year proved to be a very active exploration season for Golden Arrow and formed a new important value base for future activities and for attracting joint venture partners. The Company's management began 2012 by addressing how to best capture the opportunities that Argentina offers as a top mining destination. Golden Arrow's substantial property portfolio consists of more than 90 property titles in which the Company owns a 100% interest, with no vendor payments representing a notable value in addition to the Company's 1% NSR on the Gualcamayo Gold mine. This property portfolio is generating great interest from potential joint venture partners (http://www.goldenarrowresources.com/assets/docs/nr/2012-03-26_NRMaps.pdf).
Golden Arrow is now engaged in a three-pronged approach as the best method of creating shareholder value. Specifically, this strategy consists of:
- Advancing the most deserving properties to 43-101 compliant resources and pre-feasibility study;
- Leveraging value for shareholders by exploring its large property portfolio through joint venture partnerships; and,
- Negotiating and acquiring undervalued advanced properties.
In 2011, Golden Arrow's aggressive generative campaign made three new discoveries:
- Caballos - A 26,300 ha copper-gold porphyry property at the intersection of the Maricunga and El Indo belts on the Chile-Argentina border.
- Ritsuko - A 3,237 ha property containing a high sulphidation epithermal gold prospect within the Caballos district.
- Don Bosco - The 32,800 ha Don Bosco property contains multi-target high-grade copper-gold-silver skarn and copper sedex targets in the Argentine pre-Cordillera.
A significant amount of exploration work was conducted on each of these properties, bringing each of them to the drill-ready level, capable of attracting a wide range of potential joint venture companies.
In 2012, drill programs are planned on two of the Company's projects:
- Chinchillas, as a follow-up to the first 11 successfully drilled holes; and,
- Mogote, where a 4,700m drill program is currently being carried out by Vale S.A.
Chinchillas Silver Project
The Chinchillas Silver Project is an advanced stage project, on which Golden Arrow plans to expand on the 11 previous successful drilled holes. The project is located within the southern extension of the prolific Bolivian silver-zinc-tin belt which extends into northern Argentina. Chinchillas has the potential to host a large silver-zinc-lead deposit. It is similar geologically to Silver Standard Resources Inc.'s Pirquitas mine, located 30km southwest of Chinchillas, which produced 6.3Moz silver in 2010 and contains a reported 195.1 Moz P&P Reserves at 200 g/t Ag (Silver Standard website).
Highlight intercepts from the previous drilling at Chinchillas include:
- 112 m* at 85.5 g/t AgEQ** (silver equivalent), including 44 m at 110 g/t AgEQ* in CH-1
- 14 m at 8.06% Zn in CH-6
- 20 m at 183.1 g/t Ag and 8 m at 228.8 g/t Ag in CHD-15
*True width of the intercepts is not known
**Silver Equivalents (AgEQ) were calculated using US$ 40/oz for Silver, US$ 1.20/lb for lead and US$1.10/lb for Zn; metallurgical recoveries and net smelter returns are assumed to be 100%.
Vale S.A. Partnership
Golden Arrow's 100% owned 8,300 ha Mogote copper-gold-silver porphyry/epithermal project is centrally-located in the prolific Vicuna District of northern San Juan Province. This district 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. Mogote covers multiple large porphyry/epithermal targets and hosts classic Andean-type porphyry copper-gold mineralization.
This project has been optioned to Vale Exploracion Argentina S.A., a wholly-owned subsidiary of Vale S.A. A planned 4,700 m drill program on Mogote commenced on January 2012 and is currently underway. Assay results shall be made available as soon as they are provided to the Company.
Argentina continues to be a sought-after destination for mining exploration. Golden Arrow, as a Grosso Group member that has been active in Argentina since 1993, is well-positioned to capitalize on its expertise and competitive advantage in the country, making it a very attractive joint-venture partner. The Company has reviewed numerous projects and prospective regions and continues to be at the forefront of Argentina's exploration frontiers. Golden Arrow holds a substantial property portfolio in Argentina, especially along the border with Chile where numerous world-class deposits are currently being mined (http://www.goldenarrowresources.com/assets/docs/nr/2012-03-26_NRMaps.pdf). The Company recently launched an aggressive joint venture campaign at the PDAC conference in Toronto, at which Golden Arrow's portfolio of projects were introduced to many major and junior mining companies.
The Company's current cash position, as well as its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan, Argentina, provide it with sufficient capital to carry-out all its committed exploration plans for the current fiscal year. Additionally, in the context of the current market, the Company continues to review undervalued advanced assets to acquire as a method of leveraging value for its shareholders.
The technical information contained in this release has been prepared by Bruce Smith, MAusIMM (Chartered Professional) Geologist, Golden Arrow's Exploration Manager, and has been reviewed by Dr. Gerald G. Carlson, Ph.D., P.Eng., Director of Exploration for Golden Arrow, both Qualified Persons as defined in National Instrument 43-101.
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 Argentina where it is highly regarded and trusted since 1993. Golden Arrow offers exceptional exposure to Argentina's vast mining potential.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & CEO
For further information please contact:
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.
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.