Wednesday, August 03, 2011
Golden Arrow Options Advanced-Stage Chinchillas Silver Project, Jujuy Argentina
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC, WKN: A0B6XQ, "Golden Arrow" or the "Company") is pleased to announce it has entered into an option agreement ("Option Agreement") with a private group to acquire a 100% interest in the advanced-stage 979ha Chinchillas Silver Project located in Jujuy Province, Argentina. Chinchillas is an advanced stage project with 14 drill holes completed of which 11 holes cut potentially economic mineralized intercepts. The Company has started to advance the permitting process to commence a drilling program on the project. Project details and terms of the agreement are described below.
Highlight intercepts from the previous drilling at Chinchillas include:
- 112m at 85.5 g/t AgEQ* (silver equivalent), including 44m at 110 g/t AgEQ* in CH-1
- 14m at 8.06% Zn in CH-6
- 20m at 183.1 g/t Ag and 8m at 228.8 g/t Ag in CHD-15
A comprehensive tabulation of significant drill results is provided below in Table 1.
The Chinchillas project is located in the prolific Bolivian silver--zinc-tin belt which extends into northern Argentina. The Company believes that Chinchillas has the potential to host a large silver+/- zinc+/-lead deposit. Examples of similar projects in the district include: The Pirquitas silver mine, owned and operated by Silver Standard Resources Inc. (195.1 Moz P&P Reserves at 200 g/t Ag; 6.3Moz silver produced in 20101), located 30km southwest of the Chinchillas silver project; and, Golden Minerals Company's El Quevar project, (Measured and Indicated Resource of 59.9 Moz grading 310 g/t Ag2), located 200km to the south.
This transaction is part of Golden Arrow's strategy to acquire advanced-stage projects while leveraging its high quality exploration project portfolio and exploration dollars through attracting partners to fund work on its projects. The Company currently has two projects under option to Vale Exploracion Argentina, S.A., a wholly-owned subsidiary of Vale S.A. and one optioned out to Coronation Resources Limited.
Please see Chinchillas Project location map:
http://www.goldenarrowresources.com/i/maps/Chinchillas-Location-Map-2.jpg
Chinchillas Project Details:
The Chinchillas project is underlain by a Tertiary volcanic dome complex with associated lava flows and tuffs and several large overlapping or cross-cutting breccia bodies that have intruded Paleozoic sedimentary rocks, forming a bowl-shaped depression approximately 1.5km in length and 600m to 800m in width. There are multiple targets that require infill drilling. The main targets are breccia pipes and mantos that contain significant amounts of silver, zinc and lead mineralization as both clasts and matrix disseminations in breccias. Significant mineralization is also hosted by brecciated Paleozoic sediments peripheral to the dome complex.
A total of 2,996m in 14 holes (7 RC and 7 Diamond holes) have been drilled by two previous operators within a 1km by 0.4km area in the north-central portion of the property. This drilling tested 5 main mineralized targets, listed below, which now require detailed infill and expansion drilling.
- Socayon del Diablo. A hydrothermal Ag-Zn-Pb diatreme breccia, approximately 70m in diameter.
- Silver Manto. Near surface zone (0-100m) in the western basin with several high grade silver intercepts interpreted as a possible flat-lying breccia zone.
- Silver Deep. Below Silver Manto CHD-16 cut a 10m zone averaging 176.2 g/t AgEQ* at 240m depth.
- Zinc Zone. Hole CH-6, located in the center of the property between Socayon del Diablo and Silver Manto, cut high grade zinc, with 14m @ 8.06% Zn.
- Potrero Tunnel. Ag-Zn-Pb brecciated and mineralized Paleozoic sediments at margin of Dome complex.
Apart from the targets that were already identified by the historic drilling, there remain several targets that Golden Arrow plans to drill test. The most important un-drilled targets include:
- The historic Chinchillas mine, where mineralized veins between 0.8 and 1.2m have been described.
- The contact zone between the dome-breccias and host sediments.
- The structural intercept between Socayon del Diablo and Potrero tunnel.
All targets and historic drill hole locations can be viewed on the Chinchillas Project target summary map:
http://www.goldenarrowresources.com/i/maps/Chinchillas-Intersections-JUL2011.jpg
Table 1: Chinchillas summarized drill intercepts
|
Target |
Hole I.D |
|
From |
To |
Interval** |
Ag (g/t) |
Pb (%) |
Zn (%) |
AgEQ* |
|
S. Diablo |
CH-1 |
|
4.0 |
116.0 |
112.0 |
38.9 |
0.80 |
1.60 |
85.5 |
|
|
|
Including |
4.0 |
48.0 |
44.0 |
49.7 |
1.07 |
2.04 |
110.1 |
|
|
|
and |
52.0 |
62.0 |
10.0 |
75.0 |
1.92 |
2.12 |
154.6 |
|
|
|
and |
70.0 |
90.0 |
20.0 |
47.3 |
0.67 |
2.31 |
104.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Manto |
CH-5 |
|
38.0 |
86.0 |
48.0 |
73.5 |
0.32 |
0.05 |
81.1 |
|
|
|
Including |
64.0 |
86.0 |
22.0 |
108.3 |
0.08 |
0.06 |
111.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Zinc Zone |
CH-6 |
|
56.0 |
70.0 |
14.0 |
3.8 |
0.05 |
8.06 |
|
|
|
|
|
84.0 |
90.0 |
6.0 |
6.3 |
0.14 |
2.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
S. Diablo |
CHD-10 |
|
3.3 |
29.0 |
25.7 |
70.2 |
0.69 |
2.29 |
127.4 |
|
|
|
Including |
3.3 |
25.0 |
21.7 |
76.4 |
0.65 |
2.55 |
137.9 |
|
|
|
|
35.0 |
49.0 |
14.0 |
38.2 |
0.62 |
1.86 |
86.0 |
|
|
|
|
60.5 |
63.0 |
2.5 |
60.9 |
1.55 |
1.81 |
126.9 |
|
|
|
|
72.0 |
80.0 |
8.0 |
133.1 |
2.89 |
2.18 |
233.7 |
|
|
|
|
91.0 |
98.0 |
7.0 |
35.0 |
0.58 |
1.31 |
71.6 |
|
|
|
|
149.0 |
169.0 |
20.0 |
23.5 |
0.55 |
1.19 |
57.1 |
|
|
|
Including |
151.0 |
160.0 |
9.0 |
33.7 |
0.82 |
1.59 |
80.8 |
|
|
|
|
191.0 |
210.0 |
19.0 |
44.4 |
0.64 |
1.20 |
80.2 |
|
|
|
Including |
201.0 |
210.0 |
9.0 |
72.1 |
1.13 |
1.47 |
123.0 |
|
|
|
|
|
|
|
|
|
|
|
|
S. Diablo |
CHD-12 |
|
7.0 |
10.2 |
3.2 |
20.0 |
0.26 |
1.93 |
61.9 |
|
|
|
|
159.0 |
167.0 |
8.0 |
48.0 |
0.04 |
0.76 |
63.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Potrero |
CHD-13 |
|
108.0 |
132.0 |
24.0 |
23.7 |
0.33 |
0.79 |
45.5 |
|
|
|
|
158.0 |
176.0 |
18.0 |
57.5 |
0.77 |
0.69 |
86.4 |
|
|
|
|
214.0 |
219.8 |
5.8 |
31.9 |
0.84 |
0.13 |
51.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Manto |
CHD-14 |
|
5.0 |
13.0 |
8.0 |
69.0 |
0.11 |
0.48 |
80.4 |
|
|
|
|
25.0 |
43.0 |
18.0 |
81.0 |
1.19 |
0.16 |
108.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Manto |
CHD-15 |
|
3.0 |
23.0 |
20.0 |
183.1 |
0.23 |
0.01 |
188.1 |
|
|
|
|
47.0 |
55.0 |
8.0 |
228.8 |
1.98 |
0.03 |
270.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Manto |
CHD-16 |
|
84.0 |
104.0 |
20.0 |
11.9 |
0.40 |
1.09 |
40.7 |
|
Silver Deep |
|
|
240.0 |
250.0 |
10.0 |
169.5 |
0.15 |
0.19 |
176.2 | *Silver Equivalents (AgEQ) were calculated using US$ 40/oz for Silver, US$ 1.20/lb for lead and US$1.10/lb for Zn; metallurgical recoveries and net smelter returns are assumed to be 100%. **True width of the intercepts is not known
The Chinchillas property is located at 4,000m above sea level 60km west of Abra Pampa in northwest Jujuy and is easily accessible by road; exploration work can be carried out on a year round basis.
Option Agreement Summary:
The Option Agreement has been signed by the parties. Golden Arrow may acquire a 100% interest in the Chinchillas project by making the cash payments to the vendor laid out in the table below; the first $20,000 has been paid.
|
Timing |
Cash Payments ($US) |
|
On Signing |
$20,000 |
|
By 6th Month Anniversary* |
$80.000 |
|
By 1st Anniversary |
$150,000 |
|
By 2nd Anniversary |
$250,000 |
|
By 3rd Anniversary |
$400,000 |
|
By 4th Anniversary |
$900,000 |
|
Total |
$1,800,000 | *or Receipt of Drilling Permits, whichever is first
Furthermore the Company must make an additional payment of $1.2 million to the vendor upon the commencement of commercial production.
The historical project information reported herein was supplied to the Company by the property vendor and was not collected by Golden Arrow and should therefore be considered historical in nature. It has been reviewed by Bruce Smith, Chartered Professional AUSIMM, Golden Arrow's Exploration Manager and a Qualified Person, and by Dr. David A. Terry, P.Geo., director and Vice President Exploration for Golden Arrow, and a Qualified Person as defined in National Instrument 43-101, and the work is believed to have been carried out in a professional manner. The Company has conducted a due diligence site visit, including collection of surface confirmation samples. RC holes CH-1 to CH-7 were completed in 1996 by Aranlee Resources and Diamond holes CHD-10 to CHD-16 were completed by Silex Argentina S.A., a subsidiary of Golden Minerals Company (formerly Apex Silver Mines Limited), in 2007-2008. No QAQC data is available for the RC drillholes but a QAQC program and raw data for the Silex Diamond holes was reviewed by the Company and no issues identified. Based on the historical and preliminary nature of the drilling carried out to date on the Chinchillas project, no estimation of the true thickness of the recorded mineralized intercepts is possible at this time.
About Golden Arrow:
Golden Arrow is a Vancouver-based, explorer and prospect generator focused on advancing, identifying and acquiring precious and base metal projects in Argentina with the goal of achieving a world class discovery. The Company is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan, Argentina, a joint-venture with Vale on two properties, an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company with over 18 years of experience in South America.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso, President & CEO
For further information please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com
1Pirquitas Mine Reserves from Silver Standard Resources Inc.'s website.
2El Quevar Resources and Reserves are stated as 43-101 compliant on Golden Minerals website.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
Copyright � 2010 Golden Arrow Resources Corporation (GRG) All rights reserved. For more information visit our website at http://www.goldenarrowresources.com/ or send email to info@goldenarrowresources.com.
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