The almost 64,000 hectare, road-accessible Tierra Dorada Project includes two separate property blocks of 34,566 and 29,288 hectares, situated 6 km apart. The city of Villa Florida is in the centre of the project at 80 metres above sea level. The topography is relatively flat, with scarce outcrop. Powerlines cross both properties.
In southern Paraguay, the Precambrian basement of Lower Proterozoic age comprises a metamorphic suite of gneisses, metaquartzites, schists and iron formations of the Tebicuary Complex overlain by clastic sediments including conglomerates, sandstones and siltstones that have been subjected to low grade metamorphism (Paso Pindo Group). In the north, the Upper Proterozoic-Cambrian granites and granodiorites are associated with tuffs and rhyolitic flows. The Tierra Dorada project covers most of the area of the Tebicuary Complex of lower Proterozoic age (2,000 My), where the known gold mineralization has been detected so far.
The southern property block has been the focus of most of the historical exploration work to date in the area, with four main target areas delineated. The most advanced of the four targets, San Miguel, includes two parallel northeast trends approximately three km in length, with iron rich laterites developed in quartzites and gneisses. Previous work at San Miguel included soil and rock sampling, and pan concentrate collection from stream sediments. Previous operators included The Anschutz Co. in the late 1970´s and early 1980´s, and Yamana Gold Inc. in the 1990´s. Yamana carried out trenching and drilled six shallow reverse circulation holes along the eastern trend defining gold mineralization in laterites. There is no public report available for this work, however drilling sections have been obtained showing geology and assays from four vertical holes up to 88 m deep.
Historic drilling highlights include:
- 6.1m @ 1.12 g/t Au, including 1.5m @ 3.32 g/t Au in SM-H3 starting at 12.2 metres depth
- 3.05m @ 2.87 g/t Au, including 1.5m @ 3.74 g/t Au in SM-H4 starting at 19.8 metres depth
- 4.57m @ 1.72 g/t Au, including 1.5m @ 2.85 g/t Au in SM-H5 starting at 9.2 metres depth
- 3.05m @ 1.35g/t Au, including 1.5m @3.6g/t Au in SMH6 starting at 27.5 metres depth
At the Alvaro target, located three km to the north of the San Miguel target, there are three showings of sub-outcropping quartz veins over a distance of 2.5 km. At one of these showings, sampling by previous operator Paraguay Gold reportedly yielded assays of up to 148.4 g/t Au. The terrain in the area is very flat with limited outcrop so it remains uncertain whether these areas of veining are part of a single vein or related to a composite vein system. Golden Arrow due diligence sampling confirmed the presence of gold mineralization with values of 3.3, 15.1 and 16.1 g/t Au from samples from each of the three showings. This target has seen limited exploration work to date. Historic stream sediment samples in the same area returned up to 154 ppb gold.
The other two targets, Itayuru and Cerro Pero, are located 9 and 14 km to the SW of the San Miguel target, respectively. Historic sampling by Anschutz Co. and Paraguay Gold reportedly returned values ranging from -48 ppb Au up to 7.04 ppm Au in quartzites and 68 ppb Au up to 2,147 ppb Au in pan concentrate samples.
While the Company believes the preceding historical drilling and sampling data are reliable, readers are cautioned that a “qualified person” (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon. All data was provided by the property vendor.
Golden Arrow has executed a Definitive Option Agreement (the “Agreement”) with respect to the Project. The terms of the Agreement include staged escalating payments over six years totaling US$2,000,000, with an additional payment of US$2,000,000 due thirty (30) working days following the date of commencement of any commercial production on the Property.