Golden Arrow Reports Additional Drill Holes and Adds New Target Potential to Chinchillas Project, Argentina

Vancouver, BC / TNW-Accesswire / July 22, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce additional results from the 9000 metre Phase III drill program at the Chinchillas Silver Project in Jujuy province, Argentina. The three holes reported here are the last of seven holes drilled into the new South Dome and Pascua targets, situated between 500 metres and 1500 metres south of the existing Chinchillas resource. (See news release dated May 29th, 2014 for the results of holes CGA-111 to CGA-114.)

"All seven holes in this new southern area returned significant silver, lead and zinc intercepts, which is a great success for a first drill program," commented Golden Arrow VP Exploration and Development Brian McEwen. "We now estimate that this area, which covers just under a square kilometre, has a target potential of between 100 and 160 million tonnes at grades ranging from 32 to 40 grams per tonne silver equivalent. As we move the project to feasibility, it is a bonus to have an entirely new area with the potential to add 100 to 200 million ounces of silver equivalent to the project in the future."

Highlights of the results include:

  • CGA-123 had mineralized intervals including silver, lead and zinc, from near surface to nearly 350 metres depth, with individual zinc values as high as 3.2%.
  • CGA-124 had mineralization from 68 metres to over 350 metres depth, including 56 metres grading 30g/t silver, 0.5% lead and 0.9% zinc, or 75g/t silver equivalent, at 230 metres depth.
  • CGA-128 returned several mineralized intersections, including 13 metres grading 0.6% zinc at 194 metres depth.
Target potential grades and quantities are conceptual in nature. There has been insufficient exploration to define a mineral resource, nor is it certain that further exploration will result in the target being delineated as a resource.

The Phase III drill program is designed to increase the existing resources at the Chinchillas deposit through exploration proximal to the deposit and in new areas of the properties. Drilling is now complete, for a total of 8985 metres. Table 1 below includes the results of 860 metres of the completed drilling from 3 holes. Results for four holes are still outstanding. Following the receipt of the final drill data, the Company will update the resource estimate and PEA for the deposit, and then plans to initiate an infill drilling program, followed by a feasibility study on the Chinchillas project, by the end of 2014. The feasibility work and path to production for Chinchillas is not contingent on resource development in the southern areas, although exploration in these areas and throughout the property will continue coincident with feasibility work in anticipation of adding resources to a future mining operation.

Corebox® interactive 3-D models of the deposit and drill holes can also be found on the website, here and will be updated with these new intercepts. A map of the drill hole locations will also be posted to the Chinchillas map page on the Golden Arrow website at

Drilling Details

Mineralized intercepts for three drill holes are reported in Table 1. The southern edge of the basin hosting the Chinchillas deposit is ringed by series of outcropping dacite domes, situated approximately on the boundary of the Chinchilla-Chinchilla I properties. The 2013 field program identified several targets in and around these domes, in an area being called "South Dome". Further to the south, a series of targets were delineated based on large geophysical anomalies with no detectable surface expression, and this area is termed "Pascua".

CGA-123 is located in the South Dome area, approximately 150 metres east of CGA-113, which was reported in the news release dated May 29th, 2014. CGA-123 targeted the extension of the mineralized brecciated basement pelites identified in CGA-113, in an area that also showed a high resistivity response in the most recent geophysical survey. As found with the earlier hole, CGA-123 encountered the mineralized basement style material from the near surface to a depth of nearly 350 metres, and returned multiple intercepts with silver, lead or zinc above the cut-off grades. In particular, zinc was prevalent with grades reaching as high as 3.2% in individual intercepts.

CGA-124 tested the same brecciated basement, 150 metres further to the east from CGA-123. The hole encountered wider mineralized zones than the previous holes, including 56 metres averaging 30g/t silver, 0.5% lead and 0.9% zinc, for a combined silver equivalent grade of 75g/t.

CGA-128 is located in the Pascua area, approximately 150 metres east of CGA-111 (reported in the May 29th 2014 news release.) This hole tested coincident geophysical anomalies modeled between 100 and 250 metres depth, and returned multiple intervals with silver, lead and zinc mineralization in interlayered brecciated basement and tuff units.

Table 1. Drill Intercepts >20g/t for Ag and >0.5% for Pb and Zn

Ag Eq.
SOUTH DOME CGA-123 7 8 1.0 22 22
30 31 1.0 1.1 35
34 35 1.0 0.7 23
52 66 14.0 0.6 19
includes 63 64 1.0 36 0.9 1.2 104
82 83 1.0 0.8 26
98 100 2.0 0.5 0.7 39
132 133 1.0 0.5 0.6 35
151 156 5.0 0.6 19
includes 152 153 1.0 21 21
160 161 1.0 29 29
163 164 1.0 0.7 23
172 173 1.0 0.8 26
178 186 8.0 0.6 19
189 191 2.0 29 0.7 2.6 135
191 193 2.0 1 32
213 214 1.0 3.2 103
235 240 5.0 1 32
248 250 2.0 28 0.7 1.3 92
252 253 1.0 1.2 39
281 283 2.0 1.2 39
297 299 2.0 0.8 26
302 303 1.0 34 0.5 1.2 89
305 306 1.0 1.3 42
315 316 1.0 29 0.7 0.8 77
318 320 2.0 1 32
322 324 2.0 28 0.5 44
332 350 18.0 0.9 29
includes 336 337 1.0 28 0.6 0.7 70
and 342 343 1.0 31 0.7 1.3 95
and 346 347 1.0 36 0.8 2.8 152
SOUTH DOME CGA-124 68 70 2.0 20 0.5 1 68
81 90 9.0 0.9 29
90 93 3.0 34 0.9 1.2 102
160 162 2.0 26 0.6 0.9 74
178 184 6.0 26 0.7 49
185 186 1.0 36 36
188 230 42.0 0.5 16
includes 198 202 4.0 26 0.7 49
includes 210 211 1.0 52 52
230 286 56.0 30 0.5 0.9 75
286 299 13.0 0.7 23
299 305 6.0 29 29
309 314 5.0 29 29
321 322 1.0 20 20
324 327 3.0 0.9 29
330 333 3.0 42 0.8 68
361 363 2.0 22 1.1 57
365 369 4.0 37 37
Pascua CGA-128 125 128 3.0 0.6 19
160 161 1.0 24 0.9 0.7 76
161 165 4.0 0.5 16
183 189 6.0 0.5 0.6 35
194 207 13.0 0.6 19
207 209 2.0 89 0.7 112
209 211 2.0 0.7 23
The reported intervals are believed to approximate true width and will be confirmed with geologic modeling.
Silver Equivalent grades (AgEQ) were calculated using US$20/oz. for silver, US$0.94/lb. for lead and US$0.94/lb. for zinc.

Target Potential

The Phase III program included 7 holes in the two southern targets "South Dome" and "Pascua". (Note that hole CGA-110 described in the May 29th 2014 news release targeted the South Dome mineralization but is believed to have encountered a possible deep extension of the Socavon zone. Therefore it is not included in the target potential for the South Dome.) The two targets cover an area of approximately 0.8 square kilometres. Holes in both southern targets intercepted variable silver, lead and zinc mineralization in similar brecciated basement and tuff rock units. Using an estimated average thickness of 50 to 80 metres, it is estimated that these two targets together have a target potential for 100 to 160 million tonnes at average grades of 32 to 40 g/t silver equivalent (using the same AgEq parameters as the table above.)

Management is pleased with the results from the exploration of these targets, many of which were blind at surface, and believes this southern area shows excellent potential for the delineation of new resources. Additional modeling, surface exploration and drilling is required to fully understand the entire area and will be part of exploration programs at the property while the main Chinchillas deposit is moved through feasibility and beyond. Similar work will be planned for future exploration throughout the rest of property, of which nearly 70% remains underexplored.

Methodology and QA/QC

Analyses of the drill core were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. All samples were analyzed by method ICP-MA-39 that consists of a four acid digestion followed by ICP-OES detection. Silver results >200 Ag g/t were re-analyzed by fire assay with a gravimetric finish on 50-gram samples. Lead and zinc results >10,000 ppm were re-analyzed by a 3 acids and ICP-OES detection. The Company followed industry standard procedures for the work carried out on the Chinchillas Project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the drill core sample sequence sent to the laboratory for analysis. Golden Arrow detected no significant QA/QC issues during review of the data.

Table 2. Drill hole location and orientation data

Hole ID Easting Northing Elevation (m) Azimuth Inclination Length (m)
CGA-123 3473178 7511590 4208 180 -55 362
CGA-124 3473324 7511599 4172 180 -55 380
CGA-128 3473701 7511178 4170 0 -60 118

About the Chinchillas Silver Project

Golden Arrow is earning a 100% interest in the Chinchillas Silver Project. After less than two years exploration, the Company announced a NI 43-101 resource estimate1 in 2013, including:

  • 27.4 Moz silver / 32.6 Moz silver equivalent in Indicated Resources
    (7.2 Mt @ 119g/t silver, 0.57% lead, 0.48% zinc : 141g/t silver equivalent)
  • 53 Moz silver / 72.2 Moz silver equivalent in Inferred Resources
    (21 Mt @ 78.5 g/t silver, 0.69% lead, 0.62% zinc : 107g/t silver equivalent)
The first NI 43-101 preliminary economic assessment2 returned an after-tax NPV 8% of US$98.5M, highlighting the benefits of the project's near-surface mineralization, conventional metallurgy and access to infrastructure. The deposit is open to expansion and Golden Arrow is now drilling to increase resources.

1 "Mineral Resource Estimate for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated June 20th, 2013.

2 "Preliminary Economic Assessment for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated January 20th, 2014.

Qualified Persons

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 main 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.


"Joseph Grosso"


Mr. Joseph Grosso
Executive Chairman, President, CEO and Director

For further information please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058


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.