Golden Arrow Clarifies Technical Disclosure
Vancouver, BC / TNW-Accesswire / February 10, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") announced today that, as a result of a review by the British Columbia Securities Commission ("BCSC"), Golden Arrow is issuing the following news release to clarify its disclosure.
Amended Investor Materials
On October 30, 2014, Golden Arrow announced the results of a preliminary economic assessment for the Chinchillas project ("the PEA"). In certain of its investor materials the Company did not include the following cautionary language ("PEA Cautionary Language") as required by NI 43-101 in regard to the PEA: "The preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized." The Company's investor presentation, fact sheet and website have now been updated to include this PEA Cautionary Language when the results from the PEA are stated, and amended to remove additional statements that maybe be construed as contrary to the nature of a PEA.
On July 22, 2014, Golden Arrow announced that its results from new drilling had allowed the delineation of a new Target Potential on the southern part of the Chinchillas property. A subsequent news release dated August 18, 2014 outlining the Company's plans for the project restated the Target Potential but omitted the cautionary language as required by NI 43-101 ("Target Potential Cautionary Language"). Golden Arrow therefore retracts the statements made in that release in regard to the target potential and restates them as follows, including the Target Potential Cautionary Language: "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-lead-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. 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 Company's website has also been updated to include the Target Potential Cautionary Language.
The Company has also removed a video interview from the website in which cautionary language was not used when describing the project resources and target potential. Furthermore, an October 29th, 2014 article by the Caesars Report that does not report the Company's resources, PEA and target potential in accordance with NI 43-101 standards will no longer be distributed by the Company.
Technical Report to be Amended
On December 3rd 2014 Golden Arrow filed a Technical Report ("the Report") to support the October 30th PEA. Based on comments from the BCSC, the Report is in the process of being amended and a revised version is expected to be filed on SEDAR this week to include the following changes:
- The PEA Cautionary Language will be added to sections 1.15, 1.16, 22 and 25 of the Report.
- Change of cash flow model results previously designated as "NPV0%" to "undiscounted cash flow".
- The Report's sensitivity analysis of NPV to discount rate will be amended to include additional NPV results using a higher discount rate than the 8% case.
- When the amended Report is filed, it will be accompanied by amended Certificates of Qualified Persons clarifying which QP's assume responsibility for sections 24, 25 and 26 of the Report.
- The Consents of QP's will be corrected to reference the October 30, 2014 news release.
Qualified Person Statement
This news release has been approved by Brian McEwen, Golden Arrow's Vice President Exploration and Development and Qualified Person as defined by 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 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 and CEO
For further information please contact:
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.