Golden Arrow Commits to 25,000m (82,000 ft) of Drilling at Chinchillas Silver Project; Drilling Underway
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that it has commenced the 6,000 metre (19,700 feet) Phase III diamond drilling program at the Chinchillas Silver Project in Argentina ("Chinchillas" or the "Project"). This drilling program is focused on increasing the size of the current resource, as announced in the recently filed PEA. The program also sets out to delineate potentially new resources on the recently acquired adjacent ground and is part of a larger commitment to complete a planned 25,000 metres (82,000 feet) of drilling at Chinchillas.
Chinchillas Exploration Program
The Chinchillas deposit remains open to resource expansion in most directions. The recently completed geophysics and surface mapping program has been successful in delineating several new targets. In addition, there are areas within the deposit that were not drilled at sufficient spacing to be included in the 2013 resource estimate.
There is excellent potential that this drill campaign can increase the overall size of the Chinchillas resource by:
- Expanding the known resources at the Chinchillas deposit with "infill' drilling; and,
- Expanding the resources through discovery with the new exploration targets identified on both the original property and on the adjacent newly acquired ground.
The Company has completed surface mapping, sampling and an extensive ground based geophysical program including Magnetics, CSAMT and IP / Resistivity over Chinchillas and the newly acquired Chinchilla1 property. Several highly prospective targets for resource expansion have been identified, including a new zone approximately one kilometre south east of the current resource area where coincident magnetic destruction (indicating alteration) and a large, deeply penetrating conductive zone is interpreted to be similar to the Silver Mantos resource area with tuff overlying a chargeable basement. This has the potential to host mineralization similar in style to the Silver Mantos or Basement zones, or a new style hosted in a deeper intrusive.
The Company plans to drill up to 53 holes in these targets, or approximately 6,000 metres, during the Phase III program. This campaign is expected to last approximately two months, and if successful, the Company plans to continue with an infill drilling program to upgrade the resource categories in order to move the Chinchillas project to a feasibility stage.
The contents of the news release have been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development to the Company, and a Qualified Person as defined in National Instrument 43-101.
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 contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of the Chinchillas project, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance as outlined in the PEA, including silver, lead and zinc production and planned work programs at Chinchillas. Statements concerning reserves and mineral resource estimates may also constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Chinchillas property is developed and, in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to fluctuations in the currency markets (particularly the Argentinean peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company's ability to raise financing and fund the development of the Chinchillas project pursuant to the PEA; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in a profitable mining operation at Chinchillas; risks related to mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral resources as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to the Chinchillas property being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; risks related to the Chinchillas property being located in Argentina, including political, economic, social and regulatory instability. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
The information provided in this news release addresses the Chinchillas PEA and is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. 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.