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Golden Arrow Reports Potrerillos Project Drill Results and End of Season
Project Summary
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC, WKN: A0B6XQ,
"Golden Arrow" or "the Company") has received all
results for surface exploration and drilling completed during the 2010-2011
field season on its100% owned 4,000ha Potrerillos
Gold-Silver Project, located 8km east of Barrick Gold
Corporation's Veladero gold-silver mine (11.3 Moz gold equivalent reserves*) and 9km from the Pascua
Lama project (17.8 Moz of Proven and Probable Gold
Equivalent Reserves, including 671 million ounces of silver*) in San Juan
Province, Argentina.
Golden Arrow is currently planning for next field season and looks forward to
completely drill testing all the Potrerillos drill
targets in the next drill campaign. The Company will be advancing lower
altitude projects in Argentina during the Andean winter season.
During the five month work season Golden Arrow completed the work detailed
below, highlighted by a new discovery at Panorama Ridge where high-grade
gold-silver mineralization had been identified (see June 6, 2010 News
Release):
- Diamond drilling (508m in 3 holes)
- Bulldozer roads and trenches (23 km)
- Surface
rock chip samples (1,754)
- 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)
"We
are very pleased with the amount of work carried out on Potrerillos,"
stated Joseph Grosso, President and CEO. "The
property has been significantly advanced and many new drill targets
generated, all of which remain to be tested. We look forward to resuming
drilling in the Fall of this year with a more intensive drill program."
Collectively this work has resulted in the definition of 6 distinct
mineralized target zones (described below) covering a 5km by 1.5 km area
centered on Panorama Ridge. The drilling achieved during this season only
partially tested 2 of these target areas to limited depth.
The Company is well capitalized with approximately $5 million in the treasury
and the quarterly royalty payments from its 1% NSR on Yamana's
Gualcamayo Gold mine in San Juan, Argentina. Golden
Arrow does not anticipate any further fund raising to carry out its immediate
exploration objectives.
Drilling Results
The Company commenced diamond drilling on Panorama Ridge in February; by the
end of the season 508m in 3 diamond drill holes were completed out of the
planned 10 hole 3,000m program as a result of challenging weather and
drilling conditions. The completed holes all stopped short of planned depth
and many drill targets remain untested by drilling.
The 3 holes completed in 2011 were drilled on the Las Bandas-
Panorama Veins target area which together have a
strike length of 2.6km.
- POT1 2011: drilled to 277m total depth targeting
Panorama Veins. Anomalous gold and silver mineralization
were intersected between 23m-40m within silica veins and
silicified breccias in andesite. The
mineralized interval included 1m at 1.14 g/t Au and 3.94 g/t Ag
(32m-33m) and 1m at 1.57 g/t Au and 145.86 g/t Ag (39m-40m).
- POT2 2011: drilled to 130m total depth targeting Las Bandas. >From 95m-103m the hole cut 8m averaging
0.25 g/t Au and 31.21 g/t Ag within an interval of drusy
quartz-calcite stockwork veinlets
hosted by silicified andesite.
- POT3 2011: drilled to 100.5m total depth targeting Las Bandas. From 62m-65m the hole cut 3m averaging 0.01
g/t Au and 131.90 g/t Ag hosted by quartz calcite veinlets
at the thrust contact between andesite volcanics and overlying rhyolites.
The location of the drill holes completed in 2011 are shown on
Map 1:
http://www.goldenarrowresources.com/i/maps/2011-05-27_NRM.jpg
Panorama Targets
On the north and central part of the Panorama Ridge gold-silver
mineralization is principally hosted by Do�a Ana
Group andesitic volcaniclastic rocks of Oligocene
age. The Do�a Ana andesites
are over thrust by older Paleozoic rhyolites from
the east on the upper and eastern flank of Panorama Ridge. The Las Bandas quartz calcite veins are hosted within this
NS-trending thrust zone. Major NE-SW orientated structures that appear to
also influence mineralization at the nearby Veladero
Mine, cut across the Panorama Ridge and control the
silica-gold dominant mineralization at Panorama Veins and Plata Alto zones.
Brief target descriptions are provided below; they are located on Map 1:
http://www.goldenarrowresources.com/i/maps/2011-05-27_NRM.jpg
- Panorama Veins occur within an area approximately 1km long by
500m wide. Dispersed quartz vein stockwork and
silica breccia with locally high-grade surface
samples, (see March 21, 2011 News Release).
- Las Bandas are a series of large
gold-silver bearing "bands" or vein zones that have been
traced over a strike length of approximately 2.6km. Outcrop exposures
range upto 20m wide and contain anomalous
gold-silver mineralization with locally high-grade mineralization, for
example trench T25 averaged 2.53 g/t gold and 213 g/t silver over 4m
(March 21, 2011 News Release).
- Plata Alta is at the southern and highest elevation end
of Panorama Ridge (4,500m); narrow stockwork
veins with local high grades (up to 8.55 g/t gold and 2,995 g/t silver)
outcrop within a 500m x 500m area (March 21, 2011 News Release).
Copper
South Targets
Copper South is a series of discrete copper-silver occurrences located within
a 2.5km by 1.2km area along the SW extension of Panorama Ridge. Exposure in
the area is very limited with the approximately 85% of the area covered by
modern sediments. Where observed, underlying andesitic-basaltic lavas and
tuff sequences are cut by widespread calcite stockwork
veining and shear-fault structures with intense clay and carbonate
alteration. Copper South comprises the following target zones; also http://www.goldenarrowresources.com/i/maps/2011-05-27_NRM.jpg
- Sol Ridge is a 200m by 60m isolated ridge with outcrops
of andesite agglomerate and breccia cut by copper-silver mineralized shears
which were hand sampled where outcrop allowed. From one 34m long
composite chip sample a 9m section averaged 448 g/t silver and 7.8% copper
(see April 11, 2011 News Release) . These samples did not represent true
width across the mineralized structure as the line of sampling was at an
oblique angle to its interpreted trend. A new bulldozer trench cut on
the side of Sol ridge 25m below this zone exposed an 11m wide stockwork breccia zone; 1m
of an 11m composite rock chip assayed 81 g/t silver and 1.2% copper.
- Filo Verde is centered on a dilational jog on the Pascua Lama mega-structure
where it cuts the Panorama Ridge thrust complex. A magnetic dipole
anomaly in the open space created south of this flexure is 1.4km by
0.3km and coincident with a 1.5km by 0.5km copper in talus fines anomaly
(51 soils collected on 50 m intervals along 3 lines spaced at 400m with
>50ppm Cu and ranging up to 149ppm Cu) that is open and widening to
the southeast (see April 11, 2011 News Release).
- Nugget Ridge consists of a series of
intermittently-exposed, narrow (1m-2m), high-grade copper-silver
mineralized structures trending NS along the ridge over approximately
2km. As yet there has been no bulldozer trenching of these structures
but surface rock chip sampling has returned grades as high as 2m at 30%
copper and 146 ppm silver from a recent grab
sample.
Frontera District:
Golden Arrow controls 100% of 7 properties totaling 12,488ha in the Frontera District of northwestern San Juan Province which
is one of the most prolific gold--silver mining camps in South America and
lies at the northern end of the El Indio metallogenic
belt. This district contains Barrick Gold
Corporation's world class Pascua Lama Project, which is currently under
development and contains 17.8 million ounces of Proven and Probable Gold
Equivalent Reserves, including 671 million ounces of silver*, and their Veladero Mine with Proven and Probable Reserves of 11.3
million gold equivalentounces*. Golden Arrow's Potrerillos and Rio de los Taguas
properties are both located within 8km of the Pascua Lama and Veladero gold-silver deposits
(see Map 2: http://www.goldenarrowresources.com/i/maps/Potrerillos-Tenure-area.jpg).
Analyses of the samples were performed by Alex Stewart Assayers, in Mendoza,
Argentina, an internationally recognized analytical service provider. The
Company followed industry standard procedures for the work carried out on the
Potrerillos Project. Blank, duplicate, and standard
samples were inserted into the sample sequence sent to the lab for quality
assurance/quality control (QA/QC) purposes. In general one blank, one
duplicate and two standards are inserted into the sample sequence for each
batch of 74 samples. For Drilling a total of 40 quality control samples were
inserted into the sequence of 383 core samples, representing approximately
10% of total samples analyzed. Golden Arrow detected some variation in
standard analysis outside the normal range expected. The lab reported a
significant number of standard analysis for copper
and gold lower than 2 standard deviations from the mean. Standards have been
re-assayed by two 3rd party laboratories and some small variation outside the
normal expected range was confirmed. Some core will be re-assayed but after
careful evaluation of the standard analyses, Golden Arrow does not believe these
QA/QC issues will materially effect or change the
results published in this news release. There is insufficient information at
this time to estimate true thickness of the mineralized intervals from
drilling reported herein. The technical information contained in this release
has been prepared by Bruce Smith, AUSIMM, Golden Arrow's Exploration Manager
and a Qualified Person, and has been reviewed 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.
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
*Barrick Gold Corporation 2010 Annual Report
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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