The Flecha de Oro Project includes the Puzzle and La Esperanza exploration properties, consisting of 1,952 hectares and 9,968 hectares respectively, in central Rio Negro Province. The properties are road-accessible at a modest elevation of approximately 950 metres above sea level that allows for year-round exploration. The closest town is Los Menucos, situated about 22 kilometres southeast of the Puzzle property.
The Project lies within the Somuncara Massif, where low and high sulphidation gold systems have been explored for since the first discovery of gold in the area in 1995. Examples of other gold-silver projects in the area include the Calcatreu low sulphidation gold-silver project located 165 kilometres to the southwest, hosting 746,000 oz of Indicated gold equivalent resources and a further 390,000 oz of Inferred AuEq resources. [Golden Arrow cautions that proximity to a mineral resource does not indicate that mineralization will occur on Golden Arrow’s property, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario. Results from other companies are not necessarily indicative of expected Golden Arrow results, as there has been insufficient exploration on the properties held by Golden Arrow. These facts were simply used to help prioritize the acquisition of these properties.]
The gold mineralization at the Puzzle property occurs in epithermal quartz veins, stockworks and hydrothermal breccias, hosted by a 150-250-million-year old volcanic complex. Gold mineralization at Puzzle was originally identified by previous owners in an outcropping epithermal quartz vein which can be traced for over 1,400 metres along strike as a series of showing, and in an adjacent area with quartz float material. Due diligence surface sampling and ground magnetic surveying confirmed the presence of a SW-NE corridor at least 2.3 kilometres long and up to 200 metres wide defined by a main quartz vein forming a topographic high and an adjacent quartz stockwork zone. The main vein (named “Vetarron”) and the stockwork are coincident with a magnetic low that is interpreted to result from primary magnetite destruction in the host volcanic rocks by hydrothermal alteration. The magnetic low is open in both directions along strike, but particularly to the NE under cover. Vetarron exhibits low temperature epithermal textures and hosts anomalous gold values over 2 to 3 metres of width; the highest due diligence sample was 0.48 g/t Au from a 1 metre chip sample (See Figure 1: https://bit.ly/2kpQg6n ). Additionally, the magnetic survey identified another E-W low magnetic signature which requires further investigation.
From the main vein, and up to 160 m to the NW, the quartz stockworks and sheeted veins along strike are mostly covered by alluvial recent sediments in a topographic low. Sampling of float and sub-outcropping banded, sacaroidal and bladed textured quartz vein material in this area returned up to 1.88 g/t from a 0.6 m sub-outcropping vein. The bladed texture, as indicator of a boiling zone, suggests that gold precipitation might have occurred beneath this zone.
The La Esperanza property is located in the same regional geological environment, with mineralization hosted by an older suite of granites and granodiorites with aplitic and pegmatitic dikes associated with the volcanic complex underlying the Puzzle property. At the La Esperanza property 17 kilometres of veins, with widths of up to 7 metres, occur as swarms of quartz and chalcedony veins with banded, colloform and crustiform epithermal textures.The main historic exploration activity was a trenching program carried out by Anglo Gold in the 1990´s which delineated quartz veins up to 2.5 kilometres in length with reported associated high-grade gold values. Golden Arrow geologists collected 13 rock chip samples from veins on the property confirming surface high-grade gold mineralization; the highest values were 5 metres grading 13.1 g/t gold and 0.2 metres grading 11.2 g/t gold from two parallel veins 600 metres apart; silver values included 1 metre with 89 g/t.
 1 Retrieved from http://patagoniagold.com/projects/calcatreu/ 07/26/2019.
Under the terms of the option agreement Golden Arrow has to make staged payments to the vendor totaling US$2,093,000 over 7 years to earn a 100% interest in both properties. Only US$93,000 is owing in the first 2 years, with US$13,000 having been paid to date.The vendor will retain a 1% royalty, which can be reduced to 0.25% for an additional US$1,000,000.