Vale Makes Option Payment On Golden Arrow's Mogote Project
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company) is very pleased to announce that it has received from Vale S.A. ("Vale"), through its wholly-owned subsidiary Vale Exploracion Argentina S.A., the $US 200,000 option payment required to be made by the second anniversary of the agreement pertaining to the Company's Mogote copper-gold-silver porphyry/epithermal project in San Juan Province, Argentina.
Vale is earning an initial 70% interest in the Mogote project by completing $US 6.8 million in exploration expenditures and making $US 2.3 million in cash payments to Golden Arrow over 3 years. (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 central-southern 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 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. Vale 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 metallurgical coal, phosphates, potash, manganese ore and ferroalloys, cobalt and platinum group metals (''PGMs''). To support Vale's growth strategy, we are actively engaged in mineral exploration efforts in 16 countries around the globe. Vale operates large logistics systems in Brazil and other regions of the world, including railroads, maritime terminals and ports, which are integrated with our mining operations. In addition, Vale has a maritime freight portfolio to transport iron ore. Directly and through affiliates and joint ventures, we also have investments in energy and steel businesses. Vale is committed to transform natural resources into prosperity and sustainable development by operating with respect for the natural environment and being an ethically and socially responsible company. Vale's target is to be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet.
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 the pending sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold Mine to Premier Royalty for $17.75 million pending shareholder approval (details in GRG News Release dated May 24th , 2012), ongoing drilling at the advanced Chinchillas Silver project, 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.
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.