In July 2016 Golden Arrow signed an option agreement for the Antofalla silver-gold-base metal property in Catamarca province. The property has strong geologic similarities to the Company’s flagship Chinchillas Silver Project, and Golden Arrow believes the best plan for delineating new resources is to follow the Chinchillas model and assess the project for mineralization associated with the dacite domes and volcaniclastic tuffs and breccias.
- 100% earn-in option on 8,760 hectares with payments over 5 years and low 1% NSR
- Impressive 4 by 5 km zone of hydrothermal alteration with intense argillic signature
- Geological evidence for a High Sulphidation (HS) system with potential for the discovery of world class epithermal or porphyry deposits
- Existing database of previous drilling exploration work, with results including:
- 18 metres @ 128 g/t silver, 0.23 g/t gold and 0.88% lead in historic drilling
- 2 metres @ 9.2 g/t gold, 52 g/t silver and 5% lead in historic trench samples
- Road accessible
- Mining-friendly government
Property & Access
The Antofalla Project consists of six contiguous mining claims
(“Minas”) totaling 8,760 hectares, situated approximately 50 kilometres
south of the Catamarca-Salta provincial border.
From the city of Salta it is approximately 500 kilometres to the
project, and the small town of Antofalla is approximately 30 kilometres
away. The project is road accessible, and the elevation ranges from
3,700 to 5,300 metres above sea level.
Geology & Mineralization Overview
Basement rocks at the property consist of Ordivician pelites and sandstones, similar to the Chinchillas basement. These are intruded by Permo-Triassic granites, which are overlain by Oligocene-Miocene red beds with mudstones, sandstones and conglomerates. The property is situated within the Miocene-age Antofalla stratavolcano complex, which was the source of intense volcanic activity, creating rhyolitic and dacitic domes with volcanoclastic tuffs and breccias, and andesites.
The system is similar to the Miocene dacite dome and breccia complexes seen at Chinchillas, which are related to silver-lead-zinc mineralization. Alteration indicates a high to medium epithermal sulphidation system that includes alunite, illite, jarosite, pyritic quartz, and kaolinite.
Mineralization is known to occur in two main styles. The first
is in silicified breccias that cross-cut the volcaniclastics related to
the dacite domes. The second is in quartz veins within the red beds.
Previous operators included Northern Orion (~1997) and Silex Argentina (2004-2005). Northern Orion focused mainly in the dome zone in the volcaniclastic breccias, drilling six reverse circulation drill holes. Unverified results include 102 metres averaging 45 g/t silver and 0.58% lead, with an 18- metre interval of 128 g/t silver, 0.23 g/t gold and 0.88% lead. Chip channel sampling by Golden Arrow on outcrops just above this last drill hole averaged 14.9 meters with 271 g/t silver and 1.0 % lead. Silex focused on the vein style mineralization, drilling six diamond drill holes - three in the Los Españoles vein and three in the Los Jesuitas vein. The best intercepts include 3 metres averaging 3.8 g/t gold and 16 g/t silver, and 16 metres averaging 0.5 g/t gold, 77 g/t silver and 1.2% lead. Trench sampling returned a best result of 2 metres averaging 9.2 g/t gold, 52 g/t silver and 5% lead.
Option Agreement Summary
Under the terms of the option agreement Golden Arrow can, through its wholly owned subsidiary Desarrollo de Recursos S.A (“DDR”), earn a 100% ownership of the properties by making staged payments over five years totalling US$1.5 million. There is a 1% net smelter royalty (“NSR”) on the properties, which can be purchased by DDR for an additional US$1.5 million.