Property & Access

The Potrerillos gold-silver project is located in the El Indio gold-silver belt, 8 km east of Barrick’s Veladero gold mine, and the Pascua-Lama project in western San Juan Province, Argentina (www.barrick.com). Proximity to these deposits does not indicate that similar mineralization will occur at Potrerillos, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario, however Golden Arrow uses these deposits as models to guide the exploration process.

Golden Arrow has an exclusive right to the 3,999 hectare property which lies in the Andean Cordillera with elevations ranging from 4000m to 5000m above sea level. The main target areas can all be accessed by 4x4 truck and motorcycles and exploration work can be conducted 6-8 months per year.

Geology & Exploration Summary

[For full details of exploration results, please refer to the original News Releases filed on SEDAR.]

The Potrerillos project contains multiple target areas: Panorama Ridge, Copper South, Fabiana, and Narelle. The Panorama Ridge target hosts a structurally-controlled, outcropping mineralized quartz-calcite vein system traceable for 3 kilometres. Rock chip sampling returned samples with as much as 15 g/t gold and 2995 g/t silver. Strong silver, gold, copper, arsenic and mercury values in veins and breccias at the Panorama Zone indicates the potential to discover epithermal multiphase hydrothermally altered precious metal deposits similar to Veladero and Pascua-Lama. Golden Arrow focused most of its work at this target area, but it remains underexplored, with only 508 metres of drilling in 3 holes.

Secondary targets at the project include Copper South (high grade and native copper occurrences) Narelle (mercury and arsenic anomalies) and Fabiana (quartz and adularia cemented breccias).

Panorama Ridge

The Panorama Ridge low-sulphidation epithermal gold-silver target is controlled by the intersection of major fault systems. The dominant feature is a NS orientated thrust system where Permian to Triassic rhyolites of Choiyoi Group are thrust from east to west over the Doña Ana andesites of Oligocene-Miocene age. The Doña Ana hosts the majority of the gold deposits in the El Indio Belt.

Large (up to 15m thick) calcite quartz veins have developed along this NS thrust system and are traced for 3km. The mineralization in the thrust veins is variable, very high grades occur in some zones but generally with silver around 20 to 50ppm and gold 0.1 to 0.2 ppm.

Cross cutting the major NS thrust are a number of east-westerly faults that control mineralization at the Valedero mine. At the intersection of the NS Thrust and WNW Faults a system of quartz vein stock works occur, with veins up to 2m thick and grades up to 15.4 g/t Au and 844 g/t Ag.

In 2010-2011 Golden Arrow completed a significant exploration program, including:

• Diamond drilling (508m in 3 holes)
• Bulldozer roads and trenches (23 km)
• Surface rock chip samples (1,754)
• IP/Resistivity and CSAMT Resistivity geophysics (16.5 line km)
• Ground magnetic surveys (54 line km)
• Detailed geological mapping (covering 3,950 ha)