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Golden Arrow Reports Additional Drill Results, Discovers New Area of Mineralization and Acquires Third Concession at Chinchillas

Vancouver, BC / TNW-Accesswire / March 17, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results from nine additional drill holes in the Phase IV drilling campaign at the Chinchillas silver-lead-zinc deposit in Jujuy Province, Argentina. Results from four of the holes have confirmed a significant new area of deeper mineralization in the western side of the deposit that is expected to contribute to an increase in resources. The four holes stepped out approximately 100 metres to the east, west and north, and approximately 50 metres to the south of Phase III drill hole CGA-126 that first intersected this mineralization, and all four holes encountered the same new mineralized area at depths of 160 to 180 metres.

Highlight intercepts from these drill holes include:

  • 227 g/t silver equivalent ("AgEq") over 11.5 metres (79 g/t silver, 2% lead, 2.6% zinc) at 162 metres depth in CGA-148
  • 102 g/t AgEq over 3 metres (47g/t silver, 1.2% lead and 0.5% zinc) followed by 1.1% zinc over 27 metres at 179 metres depth in CGA-149
    • Plus 181 g/t AgEq over 41 metres (81 g/t silver, 0.7% lead, 2.4% zinc) in the upper part of the hole at 14 metres depth.
  • 180 g/t AgEq over 27 metres (67 g/t silver, 1.3% lead, 2.2% zinc) at 172 metres depth in CGA-152
  • 113 g/t AgEq over 21 metres (74 g/t silver and 1.2% lead) at 177 metres depth in CGA-153
    • Including 317 g/t AgEq over 2 metres (214 g/t silver and 3.2% lead)

The Company also wishes to report that it has been granted a third concession to be part of the Chinchillas project. Chinchilla II covers an area of 883 hectares situated immediately to the west of the Chinchilla and Chinchilla I concessions, expanding the total project area to 2,043 hectares (5,048 acres).

"We are pleased that drilling continues to expand the areas of mineralization, especially at depth. These deeper zones have the potential to expand the resources and pit configuration significantly and therefore improve the economics of Chinchillas," commented Golden Arrow VP Exploration and Development, Brian McEwen. "In addition, the increase in the concession area gives us more targets for resources and a broader area for possible project infrastructure requirements in the future."

The planned Phase IV drill program includes up to 16,000 metres of diamond drilling designed to contribute to the eventual feasibility study. Approximately 8,400 metres of the Phase IV drilling has been completed to date. The program goals include: testing the limits of the deposit in all directions, including at depth; in-filling drill hole-spacing to facilitate the upgrade of the resource categories to Measured and Indicated, and; drilling for infrastructure and geotechnical studies.

Table 1 below includes the results of 2,275 metres of drilling from nine holes. A map of the drill hole locations will be posted to the Chinchillas map page on the Golden Arrow website at:

Drill Hole Details

Mineralized intercepts are reported in Table 1. The western portion of the Chinchillas deposit includes the upper Silver Mantos zone and lower Mantos Basement zone. The eastern portion of the deposit includes the upper Socavon del Diablo ("Socavon") zone, and the lower Socavon Basement zone. The zones are all part of a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the central part of the vent (Silver Mantos and Socavon zones) and brecciated the underlying Ordovician basement schists (Mantos Basement and Socavon Basement zones). Silver-lead-zinc mineralization in the upper zones is disseminated within thick mantos (layers), and in the lower zone is mainly within the fractures of the breccias. The zones are described in detail in the most recent NI 43-101 Technical Report, filed on SEDAR on February 15th, 2015. Drill core from these holes was subject to visual inspection and qualitative analysis using a hand-held X-ray fluorescence (XRF) spectrometer for silver, lead and zinc. Based on these results, intervals deemed to have low or no mineralization had pulps composited by the laboratory prior to analysis, using equal masses, with the resulting composite samples representing 2 to 6 metre intervals.

Silver Mantos Deep target

In the Phase III drill program hole CGA-126 (reported July 24th 2014) intersected mantos-style mineralization in the tuffs of the southeast part of the Silver Mantos area at a much deeper level than previously seen. The main intercept averaged 31 metres of 186 g/t silver, 2.4% lead and 2.2% zinc starting at 165 metres depth. In order to test the potential to expand resources in this area, 6 holes were drilled during this Phase IV program, roughly encircling hole CGA-126 and stepping out between 65 and 128 metres: CGA-143 (reported January 19th 2015), -148, -149, -151, -152 and -153. All holes but CGA-151 intersected the new lower target, with mineralized intercepts ranging from one to 27 metres in width. The results demonstrate horizontal continuity, with mineralization in close relationship to the contact of a dacitic body, and are expected in build resources in this area. The target remains open and further drilling is necessary to fully delineate mineralization. In addition, all six holes encountered the typical Silver Mantos mineralization in the upper levels that will infill the existing resources.

Hole CGA-148 is situated 107 metres east of CGA-126. It intercepted typical upper Silver Mantos mineralization with several one to five metre intervals of significant values starting at 25 metres depth. (The upper 50 metres is to be re-drillled and sampled due to poor core recovery). The drill hole encountered the targeted tuff-hosted deep mantos mineralization at 162 metres depth with 11.45 metres averaging 79 g/t silver, 2% lead and 2.6% zinc. The dacite below also has several one metre intervals of mineralization related to sulphides veinlets.

Hole CGA-149 is located 92 metres north-northeast of CGA-126. In the upper Silver Mantos at 14 meters depth it intersected 41 metres averaging 81 g/t silver, 0.7% lead and 2.4% zinc plus another manto at 55 metres of 12 metres thickness averaging 82 g/t silver. The deep manto target was intercepted at 179 metres depth with intersections in the tuffs of three metres averaging 47 g/t silver, 1.2% lead and 0.5% zinc plus 27 metres averaging 1.1% zinc. The dacite body was intercepted starting at 489 meters. In between the deep mantos and dacite there are several one metre intervals of mineralization, indicating that with further exploration high grade feeders might be detected. This hole ended at 539 metres and it is the deepest hole drilled in the project.

Hole CGA-151 is located 128 metres northeast of CGA-126. There were several short intercepts of mineralization in the upper Silver Mantos. The deep mantos was not intersected at the expected depth. The Mantos Basement was encountered at 166 metres.

Hole CGA-152 is located 65 metres southeast of hole CGA-126. Mineralization in the upper Silver Mantos included nine metres averaging 45 g/t silver, 0.6% lead and 1.7% zinc. The deep mantos mineralization was found in the tuffs including 27 metres averaging 67 g/t silver, 1.3% lead and 2.2% zinc starting at 172 metres depth, followed by eight metres averaging 26 g/t silver and 2% zinc.

Hole CGA-153 is located 93 metres northwest of hole CGA-126. From 22 to 102 metres depth several mineralized mantos were intercepted, as shown in Table 1. Between approximately 160 and 180 metres, the Mantos Basement was intersected, and at 177 metres depth 21 metres averaged 74 g/t silver and 1.2% lead. In this interval it was expected that deep mantos would be intersected.

Other Targets

Holes CGA-147 and CGA-150 were collared in the northeast part of the Silver Mantos zone to test the expansion of resources in a 50 metre eastern step. CGA-150 had one small mineralized intercept but otherwise both holes were un-mineralized.

Holes CGA-154 and CGA-155 were drilled to test the northeast expansion of the Mantos Basement zone. Hole CGA-154 stepped out 48 metres east of the previously reported hole CGA-133, which returned 32 metres averaging 191 g/t silver and 2.8% lead, plus 26 metres averaging 86 g/t silver and 1.3% lead (see news release dated January 6th, 2015). CGA-154 encountered a dacitic body from 156 metres to the end of the hole. Mineralization was found in the basement rocks just above the dacite, with the best intercept of nine metres averaging 77 g/t silver.

Hole CGA-155 was located at 93 metres northeast of hole CGA-136. It encountered only limited mineralization in the basement rocks as shown in Table 1.

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

Length (metres) Ag
Ag eq
North Slope CGA-147 no significant mineralization
Silver Mantos CGA-148 25 26.9 1.9 28 0.6 0.8 73
28.75 29 0.25 36 1.1 0.5 88
30.1 34 3.9 86 2 0.8 176
34 38 4 0.5 2.5 97
41 42.25 1.25 1.3 42
43.55 47 3.45 0.8 2.2 97
59 61 2 0.7 3.5 135
81 86 5 25 0.5 1.1 77
141 142 1 49 1 81
162 173.45 11.45 79 2 2.6 227
Silver Mantos (Dacite) CGA-148 175 176 1 1.4 45
176 177 1 35 0.7 58
177 183 6 0.5 16
223 224 1 2.9 93
Silver Mantos CGA-149 14 54.9 40.9 81 0.7 2.4 181
including 36 40 4 246 0.5 2.8 352
55.3 68 12.7 78 78
179 182 3 47 1.2 0.5 102
182 209 27 1.1 35
336 338 2 0.8 26
368 369 1 1.5 48
388 389 1 94 1.5 0.8 168
394 395 1 32 0.9 61
405 406 1 26 26
433 434 1 57 0.9 1 118
Silver Mantos (Dacite) CGA-149 497 498 1 35 35
510 511 1 25 0.8 51
Silver Mantos CGA-150 58 60 2 31 0.7 54
Silver Mantos CGA-151 13 23 10 57 0.5 1.1 109
32 33 1 79 79
35 41 6 0.7 23
51 54 3 1.1 35
62 63 1 24 0.5 2.2 111
63 64 1 1.3 42
69 70 1 43 0.7 1.4 111
80 81 1 0.5 16
122 125 3 0.6 19
133 136 3 0.6 19
140 141 1 0.6 19
184 185 1 0.6 19
208 211 3 0.6 19
Silver Mantos CGA-152 28 37 9 45 0.6 1.7 119
56 59 3 1.2 39
128 130 2 31 31
170 172 2 2.8 90
172 199 27 67 1.3 2.2 180
199 207 8 26 2 90
207 216 9 0.9 29
216 217 1 36 36
Silver Mantos (Dacite) CGA-152 264 268 4 24 24
279 281 2 62 62
Silver Mantos CGA-153 22 35 13 78 0.6 2 162
35 38 3 1.6 52
38 42 4 99 0.5 1.5 163
50 58 8 81 0.5 1.4 142
62 64 2 23 23
92 102 10 45 45
Mantos Basement CGA-153 161 163 2 24 0.6 43
164 166 2 0.8 26
174 177 3 0.9 29
177 198 21 74 1.2 113
including 178 180 2 214 3.2 317
Mantos Basement CGA-154 144 153 9 77 77
154 155 1 28 28
Silver Mantos CGA-155 114 116 2 35 35
192 193 1 23 0.6 1.2 81
The reported intervals are believed to approximate true width and will be confirmed with geologic modeling. Silver equivalent grades (Ag Eq) were calculated using US$22/oz for silver, US$1.00/lb for lead and US$1.00/lb for zinc.

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 follows 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-147 3473000 7512586 4088 0 -90 130
CGA-148 3472898 7512205 4118 180 -70 296
CGA-149 3472813 7512300 4115 0 -90 539
CGA-150 3472961 7512546 4083 0 -90 91.5
CGA-151 3472892 7512293 4109 0 -90 241.5
CGA-152 3472850 7512180 4127 0 -90 300
CGA-153 3472710 7512252 4133 0 -90 247
CGA-154 3472650 7512600 4109 0 -90 200
CGA-155 3472616 7512750 4118 0 -90 230

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 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.