Golden Arrow Triples Size of Chinchillas Silver Project
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the granting of additional concessions that surround the Chinchillas Project, effectively, tripling the area of the entire property to 1,160 hectares. The mining authority has granted the concessions as well as the drill permit for the newly acquired area.
The mineralization delineated at the Chinchilla silver project is open in all of these directions and the potential to expand the current resource is high. To date the silver resource is 32.6 million ounces Ag Eq indicated and 72.2 million ounces Ag Eq inferred*.This additional ground will be the focus of the next phase of exploration, with surface mapping, geochem sampling and geophysics all planned. The Phase III drill program will incorporate additional drill targets. The objective of The Phase III drill program is to increase the size of the recently released Indicated and Inferred silver lead zinc resource (see news release dated May 9th, 2013).
In addition, Golden Arrow is undertaking an internal economic analysis of the Chinchillas Project to determine whether to complete a Preliminary Economic Assessment prior to, or after, completing the drill program. The internal review is being coordinated by independent consultant Ken Kuchling, a mining engineer specializing in economic reviews.
Golden Arrow has also engaged the services of Knight Piesold Ltd. (KPL) of Vancouver to commence engineering studies for the Chinchillas Project. The work will include a preliminary mine development plan as well as the commencement of environmental and social baseline studies. KPL is an international consulting company providing engineering and environmental services for the mining, power, water, transportation and construction sectors. KPL has offices in Mendoza, and has provided engineering services for several prominent mining projects in Argentina, including the Pirquitas, Alumbrera and Gualcamayo.
Concurrent with the engineering studies, Golden Arrow is continuing its metallurgical testing program with Inspectorate Exploration & Mining Services Ltd. Initial flotation results were very positive for the recovery of silver, lead and zinc (see news release dated May 6th, 2013). The Company is now engaged in optimizing the flow sheet with the goal of producing a separate high grade silver bearing lead concentrate and a zinc concentrate.
The Project webpage has links to the Technical Report, as well as interactive three dimensional models and sections of the deposit, provided by Corebox(r).
With respect to the Company's Mogote Project in San Juan Province, the Company discloses that pursuant to the Investment, Exploration and Option Agreement (the "Agreement") dated September 2, 2010 between the Company and Vale Exploración Argentina S.A., Vale provided notice of its decision to terminate the Agreement effective thirty (30) consecutive days from the notice date of July 5, 2013. Golden Arrow's management wish to thank Vale's technical team for their outstanding professionalism during the term of the joint venture and the Company will remain in contact with Vale to discuss possible future endeavours.
The contents of the news release has been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development and a Qualified Person as defined in National Instrument 43-101.
*The Chinchillas silver project has an Indicated resource 7.2 Mt @ 119 g/t Ag, 0.57% Pb, o.48% Zn, Inferred resource of 21 Mt @ 78 g/t Ag, 0.69% Pb, 0.62% Zn.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The core focus is on advancing the flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the company to advance its Chinchillas Silver Project. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its other 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
Executive Chairman, President, CEO and Director
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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.