Golden Arrow Defines a Three Year Development Plan for its Chinchillas Silver Project with Priority on Feasibility and Moving Towards Production
Vancouver, BC / TNW-Accesswire / August 18, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to provide an overview of management's streamlined plan to maximize values.
Management, with its long experience in the mining industry, rose to the challenge of dealing with the current down trend by implementing a strategy to lower operating budgets, narrow the Company's exploration activity and source out funding that was negligible to shareholder dilution.
In order for management to meet the challenge of sourcing funds, at minimal dilution to the treasury and as previously announced, the one percent royalty owned on Yamana's Gualcamayo mine was monetized to enable management to concentrate on a very narrow select exploration activity which produced the Chinchillas silver project discovery.
Management has strategized together with its technical team to implement a three stage development plan for the Chinchillas project which is detailed below.
Management's Staged Development Plan
The primary focus of the Company is to advance Chinchillas to a production stage. To do so, the following steps will be implemented over the next 16 months:
- The Company is currently incorporating the results of the recently completed 9,000 metre diamond drill program into the geological model to update the resource estimate.
- Following the completion of the new resource estimate, the financial models will be revised, and new NI 43-101 technical reports will be issued, including an updated Preliminary Economic Assessment (PEA). The green outline in Figure 1 below represents the main areas where the resource is expected to expand based on the recent drill program.
- Infill and associated drill programs will be completed to upgrade resources to measured and indicated, delineate resource boundaries, and define the general layout. The blue outline in Figure 1 below represents the areas in which these drill programs are likely to occur.
- The geological model and resource estimate will be further updated to incorporate the drilling described above and prepare the project for a Feasibility Study, which is envisioned to take approximately 12 months.
- Based on a positive Feasibility Study and financing, the Company then plans to move to detailed engineering, permitting and mine construction.
The following map can also be found on the Golden Arrow website at http://www.goldenarrowresources.com/assets/news/slide1-Figure-1-Stage-1-Dev-Chinchillas.jpg
.Figure 1. Stage 1 Development of Chinchillas Silver Project
The project has many areas that are prospective for discovery, in particular in the Chinchillas South area, where seven holes completed during the recent Phase 3 drilling program intersected wide zones of silver-zinc mineralization. Based on these results, the Company reported on July 22, 2014 that the Chinchillas South area has a target potential of between 100 and 160 million tonnes at grades ranging from 32 to 40 grams per tonne silver equivalent with the potential to add 100 to 200 million ounces of silver equivalent to the project in the future. Therefore Stage II will include:
- More detailed drilling of the Chinchillas South target area (shown outlined in yellow in Figure 2 below) in order to develop additional resources for the project.
The following map can also be found on the Golden Arrow website at http://www.goldenarrowresources.com/assets/news/slide2-Figure-2-Stage-2-Dev-Chinchillas.jpg
.Figure 2. Stage 2 Development of Chinchillas Silver Project
- Further resource expansion and blue sky potential is shown in blue and covers more than 70% of the property surrounding Chinchillas. This area is prospective and underexplored and has the potential of further adding to the resources at Chinchillas.
The following image map can also be found on the Golden Arrow website at http://www.goldenarrowresources.com/assets/news/slide3-Figure-3-Stage-3-Dev-Chinchilllas.jpg
.Figure 3. Stage 3 Development of Chinchillas Silver Project
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 main focus is on advancing the flagship Chinchillas Silver Project located in Jujuy, Argentina. 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
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 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.