OPERATIONS

ATLANTIDA COPPER-GOLD PROJECT

atlantida-web-location Location Map

The Opportunity

  • An historic mineral resource estimate1 of 427 million tonnes averaging 0.43% copper equivalent based on >29,000 metre drill database outlines the existing mineralization and endorses the project's potential.
  • Newly-consolidated large property and database provides opportunity to delineate significant resources in area of historic work, and identify new mineralized zones on the property
  • Excellent infrastructure supports future reasonable development timelines and costs
  • Close proximity to GRG's Indiana Au-Cu project provides the opportunity for synergy in exploration and development

Property & Access

The total land area of the consolidated Project is approximately 3,450 hectares, with an abundance of both outcrop and old workings.

The Project is road-accessible and is located 60 kilometres northeast of the city of Copiapó at an modest altitude of 1700 metres above sea level.

This is a mining-intensive region with multiple projects locally and within the Chilean Third Region. Local infrastructure includes roads, ports and energy.

Geology and Mineralization

The Atlantida Project is situated within a metallogenic belt limited by the Atacama Fault System to the west and the Domeyko Fault System to the east. Within the project area, a copper-gold deposit covering a 1.5 kilometre by 1.5 kilometre (225 hectares) area has been identified. Mineralization is hosted by porphyries intruded into limestone host rocks, as well as in the skarn at the porphyry-limestone contact (Figure 1 below). These intrusives are very close in age to others in the region that host major copper porphyry deposits, such as Relincho, Lomas Bayas, Sierra Gorda and Spence, and epithermal gold vein deposits such as Guanaco and El Peñon.

Previous operators include Inmet Mining Corporation and First Quantum Minerals Ltd. and over 29,000 metres of drilling, as well as surface sampling and geophysical work has been carried out in the deposit area. According to the preliminary information received by Golden Arrow, Inmet Mining completed a mineral resource estimate for the Atlantida deposit in 2012, as shown in Table 1. A Qualified Person has not done sufficient work to classify this estimate a current mineral resource, and Golden Arrow is not treating this as a current mineral resource estimate.

1Table 1. Historic Resource Estimate (Inmet, 2012).

Zone

Tonnage
(Mt)

Copper
(% Cu)

Gold
(g/t Au)

Molybdenum
(ppm Mo)

Copper Equivalent
(% CuEq)

Porphyry Cu-Au-Mo

257.5

0.25

0.21

42

0.42

Porphyry Au

130.5

0.06

0.53

3

0.38

Skarn

39.1

0.30

0.62

8

0.72

Total

427.1

0.20

0.34

27

0.43

As it was completed by a major company, it is believed likely that the methodology used was reliable, however, the key assumptions and parameters used in the estimate are unknown to the Company at this time. Following a review of the information acquired, Golden Arrow will determine if it will immediately pursue the completion of a current mineral resource estimate by an independent Qualified Person, using CIM best practices and following the guidelines of NI 43-101, or first proceed with additional exploration.

Immediately to the west of the resource area previously explored by Inmet Mining-First Quantum, the consolidated Atlantida project includes old workings in mineralized skarn and porphyry. Golden Arrow collected 31 due diligence rock samples in this area (Figure 2). These returned a maximum of 3.7 g/t gold and 1.98% copper, with the average result of 0.51g/t gold and 0.49% copper.

Option Agreements

The Atlantida Project includes two separate land packages that Golden Arrow has consolidated into a single project through the signing of two Definitive Agreements. The first agreement includes a 48 month earn-in with minimal costs in the first year and total payments of US$4 million. There is a 2% Net Smelter Royalty (“NSR”) payable with half available for repurchase under certain terms. The second agreement includes a 24 month earn-in period for a total of US$2 million and a 1% NSR that can be repurchased in full under certain terms. The Atlantida Project will be managed under New Golden Explorations Inc., a 100% owned subsidiary of Golden Arrow.