Vancouver, BC / ACCESSWIRE / May 29 2014 / Golden Arrow Resources Corporation (TSX-V: GRG,
FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company")
is pleased to announce that five exploration drill holes at
the Chinchillas Silver Project in Jujuy province, Argentina have
encountered significant mineralization over a previously untested
wide-spread area up to 1.5 kilometres away from the existing
resource.
"To have all five holes hit significant
mineralization, spanning over forty hectares of this previously
undrilled zone on Chinchillas, is very exciting,"
commented Golden Arrow VP Exploration and Development Brian
McEwen. "This area
represents two-thirds of our land holdings at the project and it
remains under-explored, so we are eager to follow up with more
drilling to outline new resource targets here."
"We are pleased to see increased
zinc in these recent exploration holes, as it provides the
potential to enhance the value at Chinchillas," stated Mr. McEwen. "Zinc is an important credit in
other deposits in the Bolivian silver belt, such as San Cristobal
mine, which is one of the world's largest silver producers and
states reserves of over 280 million tonnes grading 1.41% zinc, 53.0
g/t silver and 0.48% Pb."
The five
holes drilled represent targets located between 300 metres and up
to 1.5 kilometres away from the existing resource zones. Four of
the five holes are mineralized starting near surface (~50 metres
depth) and down the length of the hole, and remain open at depth.
Mineralization includes silver, lead and zinc, with zinc
predominant in most holes.
Highlights of the results
include:
-CGA-110: 17 metres averaging 0.5%
lead and 3.4% zinc (126 g/t AgEq) at 218 metres depth
-CGA-113: Returned forty-one
intercepts over 381 metres, including:
-15 metres averaging 181 g/t
silver, 1.1% lead (216 g/t AgEq) at 308 metres depth
-Including 1 metre grading 2031 g/t
silver, 9.5% lead
-CGA-114: 45 metres averaging 0.8%
zinc at 91 metres depth in CGA-114, including several higher grade
intercepts such as:
-3 metres averaging 70g/t silver,
1.1% lead and 1.5% zinc (154 g/t AgEq)
The Phase
III drill program is designed to both increase the existing
resources at the Chinchillas deposit and explore new areas of the
properties. The program initially included a minimum of 6000 metres
of diamond drilling, and this has been twice increased for a new
total of up to 9000 metres, based on the positive results to date.
Over 7500 metres has now been drilled, and holes
represented in Table 1 below include 1640 metres of the completed
drilling.
Corebox(R) interactive 3-D models of the deposit and drill holes
can also be found on the website, here and will be updated with these new intercepts. A map
of the drill hole locations will also be posted to the Chinchillas
map page on the Golden Arrow website.
Drilling Details
In July 2013 Golden Arrow
announced the successful acquisition and drill permitting of its
second concession at the Chinchillas project, "Chinchilla I". (See
News Release dated July 24, 2013.) This property is contiguous with
the original concession ("Chinchilla") and more than twice the
size. The 2013 exploration field program included surface mapping,
sampling and magnetics, CSAMT and IP / Resistivity geophysics on
part of the property that is situated to the south of Chinchilla.
The program identified several new drill targets that are part of
the Phase III program.
South Dome
Targets
The southern edge of the basin
hosting the Chinchillas deposit is ringed by series of outcropping
dacite domes, situated approximately on the boundary of the
Chinchilla-Chinchilla I properties. The 2013 field program
identified several targets in and around these in an area being
called "South Dome". (See map for location.)
Hole CGA-110 is located on the
Chinchilla property, just north of the boundary with Chinchilla I.
It was drilled to the northwest towards the Socavon del Diablo zone
and it was expected to drill into one of the dacite domes and
through sub-outcropping brecciated tuffs where the surface sampling
had returned up to 288 g/t silver. However, the hole remained in
basement material nearly the entire length, and encountered a thick
intersection of high zinc and lead towards the bottom. This
mineralization could be continuous with deep intersections in the
Socavon zone, however additional drilling will be required to
confirm this.
Holes CGA-113 and 114 are
situated approximately 770 and 600 metres west-southwest of
CGA-110, respectively. These holes tested a large area where
surface mapping identified brecciated basement-style material
starting at surface. CGA-113 was mineralized in short intervals
throughout the hole, with galena, sphalerite and siderite returning
41 intercepts over 381 metres. CGA-114 was a shorter hole but also
encountered silver, lead and zinc throughout brecciated basement
pelites. Zinc was pervasive, including through a 45 metre interval
averaging 0.8%. This interval contained several other shorter
sections with significant silver and lead.
Based on the success of these
three holes, the Phase III program will include two additional
holes in the South Dome area.
Pascua Area
Targets
The furthest southern targets on the
Chinchillas project have been grouped into the Pascua area, and
were delineated based on large geophysical anomalies with no
detectable surface expression. CGA-111 is collared more than a
kilometre south of the Socavon del Diablo resource zone, and
CGA-112 is a further 400 metres south. Similar to -113 and - 114,
both holes were mineralized throughout the brecciated basement
rocks, including proliferate microveinlets of sphalerite, galena
and siderite.
Based on the success of these
holes, the Phase III program will include an additional two holes
in this area.
Table
1. Drill Intercepts >20g/t for Ag and >0.5% for Pb and
Zn
-------------------------------------------------------------------------------------------------------------
|TARGET |HOLE ID|NOTES |FROM (metres)|TO (metres)|Interval (metres)|Ag (g/t)|Pb (%)|Zn (%)|Ag Eq. (g/t)|
|-----------------------------------------------------------------------------------------------------------|
|SOUTH DOME|CGA-110| |163 |164 |1.0 | | |0.7 |23 |
| | |----------------------------------------------------------------------------------------|
| | | |167 |168 |1.0 | | |0.8 |26 |
| | |----------------------------------------------------------------------------------------|
| | | |218 |235 |17.0 | |0.5 |3.4 |126 |
|-----------------------------------------------------------------------------------------------------------|
|PASCUA |CGA-111| |54 |62 |8.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |82 |89 |7.0 | |0.6 |0.5 |35 |
| | |----------------------------------------------------------------------------------------|
| | | |98 |100 |2.0 | | |1.1 |35 |
| | |----------------------------------------------------------------------------------------|
| | | |131 |138 |7.0 | |0.6 |0.6 |39 |
| | |----------------------------------------------------------------------------------------|
| | | |151 |155 |4.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |186 |191 |5.0 | | |0.7 |23 |
| | |----------------------------------------------------------------------------------------|
| | | |192 |195 |3.0 | | | |16 |
| | |----------------------------------------------------------------------------------------|
| | | |204 |207 |3.0 | |1.0 |0.8 |57 |
| | |----------------------------------------------------------------------------------------|
| | | |215 |224 |9.0 | | |0.7 |23 |
| | |----------------------------------------------------------------------------------------|
| | | |227 |228 |1.0 | | |1 |32 |
| | |----------------------------------------------------------------------------------------|
| | | |243 |244 |1.0 |20 |0.5 |0.8 |62 |
| | |----------------------------------------------------------------------------------------|
| | | |244 |249 |5.0 | | |0.7 |23 |
| | |----------------------------------------------------------------------------------------|
| | | |250 |252 |2.0 |38 |0.9 |0.6 |86 |
| | |----------------------------------------------------------------------------------------|
| | | |265 |270 |5.0 |21 |0.4 | |34 |
| | |----------------------------------------------------------------------------------------|
| | | |274 |275 |1.0 |20 | | |20 |
| | |----------------------------------------------------------------------------------------|
| | | |277 |278 |1.0 |20 |0.5 |0.8 |62 |
| | |----------------------------------------------------------------------------------------|
| | | |283 |287 |4.0 |36 |0.8 |0.9 |91 |
| | |----------------------------------------------------------------------------------------|
| | | |299 |302 |3.0 |28 |0.7 |0.7 |73 |
| | |----------------------------------------------------------------------------------------|
| | | |304 |305 |1.0 |117 |3.1 |2.5 |297 |
| | |----------------------------------------------------------------------------------------|
| | | |308 |312 |4.0 |51 |1.5 |1.8 |157 |
| | |----------------------------------------------------------------------------------------|
| | | |314 |320 |6.0 |20 |0.4 |0.5 |49 |
| | |----------------------------------------------------------------------------------------|
| | | |325 |328 |3.0 |80 |1.6 |0.8 |157 |
| | |----------------------------------------------------------------------------------------|
| | | |341 |344 |3.0 |47 | | |47 |
| | |----------------------------------------------------------------------------------------|
| | | |353 |354 |1.0 |41 | | |41 |
|-----------------------------------------------------------------------------------------------------------|
|PASCUA |CGA-112| |52 |59 |7.0 |50 |0.7 |1.5 |121 |
| | |----------------------------------------------------------------------------------------|
| | | |60 |61 |1.0 |27 | |1.5 |75 |
| | |----------------------------------------------------------------------------------------|
| | | |62 |67 |5.0 |33 | | |33 |
| | |----------------------------------------------------------------------------------------|
| | | |77 |79 |2.0 |53 |0.8 |1.3 |121 |
| | |----------------------------------------------------------------------------------------|
| | | |88 |94 |6.0 | | |0.6 |19 |
| | |----------------------------------------------------------------------------------------|
| | | |99 |100 |1.0 |58 | | |58 |
| | |----------------------------------------------------------------------------------------|
| | | |104 |105 |1.0 | | |0.9 |29 |
| | |----------------------------------------------------------------------------------------|
| | | |134 |135 |1.0 |32 |0.7 | |55 |
| | |----------------------------------------------------------------------------------------|
| | | |287 |288 |1.0 | | |2.0 |64 |
| | |----------------------------------------------------------------------------------------|
| | | |293 |295 |2.0 |34 |0.8 | |60 |
| | |----------------------------------------------------------------------------------------|
| | | |299 |300 |1.0 |28 |0.6 |0.9 |76 |
| | |----------------------------------------------------------------------------------------|
| | | |305 |309 |4.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |315 |318 |3.0 | | |1.2 |39 |
|-----------------------------------------------------------------------------------------------------------|
|SOUTH DOME|CGA-113| |37 |38 |1.0 | | |0.9 |29 |
| | |----------------------------------------------------------------------------------------|
| | | |45 |46 |1.0 | | |1.2 |39 |
| | |----------------------------------------------------------------------------------------|
| | | |51 |52 |1.0 |27 |0.9 | |56 |
| | |----------------------------------------------------------------------------------------|
| | | |56 |57 |1.0 | | |0.8 |26 |
| | |----------------------------------------------------------------------------------------|
| | | |61 |62 |1.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |72 |73 |1.0 |20 | |0.8 |46 |
| | |----------------------------------------------------------------------------------------|
| | | |86 |88 |2.0 |27 | | |27 |
| | |----------------------------------------------------------------------------------------|
| | | |91 |92 |1.0 |50 | | |50 |
| | |----------------------------------------------------------------------------------------|
| | | |108 |109 |1.0 | | |0.7 |23 |
| | |----------------------------------------------------------------------------------------|
| | | |112 |114 |2.0 |22 | | |22 |
| | |----------------------------------------------------------------------------------------|
| | | |123 |124 |1.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |128 |129 |1.0 |20 |0.6 |1.0 |72 |
| | |----------------------------------------------------------------------------------------|
| | | |131 |132 |1.0 | |0.7 | |23 |
| | |----------------------------------------------------------------------------------------|
| | | |138 |145 |7.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |153 |154 |1.0 |21 |0.6 |0.6 |60 |
| | |----------------------------------------------------------------------------------------|
| | | |162 |166 |4.0 |27 |1.0 |1.1 |95 |
| | |----------------------------------------------------------------------------------------|
| | | |166 |167 |1.0 | | |1.7 |55 |
| | |----------------------------------------------------------------------------------------|
| | | |170 |171 |1.0 |49 |1.4 |1.1 |130 |
| | |----------------------------------------------------------------------------------------|
| | | |171 |179 |8.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |185 |188 |3.0 | | |0.8 |26 |
| | |----------------------------------------------------------------------------------------|
| | | |188 |189 |1.0 |25 |0.5 |2.4 |118 |
| | |----------------------------------------------------------------------------------------|
| | | |193 |206 |13.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |210 |214 |4.0 |26 | | |26 |
| | |----------------------------------------------------------------------------------------|
| | | |214 |217 |3.0 | | |0.9 |29 |
| | |----------------------------------------------------------------------------------------|
| | | |220 |231 |11.0 |31 | | |31 |
| | |----------------------------------------------------------------------------------------|
| | | |235 |237 |2.0 |31 | | |31 |
| | |----------------------------------------------------------------------------------------|
| | | |239 |244 |5.0 |35 | | |35 |
| | |----------------------------------------------------------------------------------------|
| | | |247 |252 |5.0 |22 | | |22 |
| | |----------------------------------------------------------------------------------------|
| | | |255 |257 |2.0 | | |0.6 |19 |
| | |----------------------------------------------------------------------------------------|
| | | |260 |261 |1.0 |23 | | |23 |
| | |----------------------------------------------------------------------------------------|
| | | |263 |264 |1.0 | | |0.5 |16 |
| | |----------------------------------------------------------------------------------------|
| | | |266 |269 |3.0 | | |0.9 |29 |
| | |----------------------------------------------------------------------------------------|
| | | |269 |271 |2.0 |62 | |0.7 |85 |
| | |----------------------------------------------------------------------------------------|
| | | |274 |276 |2.0 |144 | |0.5 |160 |
| | |----------------------------------------------------------------------------------------|
| | | |300 |301 |1.0 | | |1.7 |55 |
| | |----------------------------------------------------------------------------------------|
| | | |308 |323 |15.0 |181 |1.1 | |216 |
| | |----------------------------------------------------------------------------------------|
| | |includes|313 |314 |1.0 |2031 |9.5 | |2,337 |
| | |----------------------------------------------------------------------------------------|
| | | |326 |330 |4.0 |131 |1.7 | |186 |
| | |----------------------------------------------------------------------------------------|
| | | |342 |344 |2.0 | | |0.6 |19 |
| | |----------------------------------------------------------------------------------------|
| | | |348 |349 |1.0 |23 | | |23 |
| | |----------------------------------------------------------------------------------------|
| | | |355 |357 |2.0 |24 | |0.5 |40 |
| | |----------------------------------------------------------------------------------------|
| | | |360 |363 |3.0 |106 |1.9 | |167 |
|-----------------------------------------------------------------------------------------------------------|
|SOUTH DOME|CGA-114| |36 |38 |2.0 | | |0.8 |26 |
| | |----------------------------------------------------------------------------------------|
| | | |91 |136 |45.0 | | |0.8 |26 |
| | |----------------------------------------------------------------------------------------|
| | |includes|106 |109 |3.0 |70 |1.1 |1.5 |154 |
| | |----------------------------------------------------------------------------------------|
| | |And |111 |113 |2.0 |43 |0.7 |2.2 |136 |
| | |----------------------------------------------------------------------------------------|
| | |And |117 |120 |3.0 |32 | | |32 |
| | |----------------------------------------------------------------------------------------|
| | |And |128 |132 |4.0 |20 |0.8 |1.7 |101 |
| | |----------------------------------------------------------------------------------------|
| | | |137 |138 |1.0 |31 | | |31 |
| | |----------------------------------------------------------------------------------------|
| | | |141 |146 |5.0 |46 |0.5 | |62 |
| | |----------------------------------------------------------------------------------------|
| | | |156 |157 |1.0 |68 |0.6 |1.2 |126 |
| | |----------------------------------------------------------------------------------------|
| | | |221 |222 |1.0 |47 | | |47 |
|-----------------------------------------------------------------------------------------------------------|
|The |
|reported |
|intervals |
|are |
|believed to |
|approximate |
|true |
|widthand |
|will be |
|confirmed |
|with |
|geologic |
|modeling. |
|Silver |
|Equivalent |
|grades |
|(AgEQ) were |
|calculated |
|using |
|US$20/oz. |
|for silver, |
|US$0.94/lb. |
|for lead |
|and |
|US$0.94/lb. |
|for zinc. |
-------------------------------------------------------------------------------------------------------------
Methodology and
QA/QC
Analyses of the drill core
were performed by Alex Stewart Assayers, in Mendoza, Argentina, an
internationally recognized assay service provider. All samples were
analyzed by method ICP-MA-39 that consists of a four acid digestion
followed by ICP-OES detection. Silver results >200 Ag g/t were
re-analyzed by fire assay with a gravimetric finish on 50-gram
samples. Lead and zinc results >10,000 ppm were re-analyzed by a
3 acids and ICP-OES detection. The Company followed industry
standard procedures for the work carried out on the Chinchillas
Project, with a quality assurance/quality control (QA/QC) program.
Blank, duplicate and standard samples were inserted into the drill
core sample sequence sent to the laboratory for analysis. Golden
Arrow detected no significant QA/QC issues during review of the
data.
Table
2. Drill hole location and orientation data
-------------------------------------------------------------------
|Hole ID| Easting| Northing| Elevation|Azimuth|Inclination| Length|
|-----------------------------------------------------------------|
|CGA-110|3473790 |7511799 |4114 |300 |-55 |302.00 |
|-----------------------------------------------------------------|
|CGA-111|3473553 |7511210 |4168 |0 |-90 |358.00 |
|-----------------------------------------------------------------|
|CGA-112|3473370 |7510854 |4216 |150 |-60 |351.00 |
|-----------------------------------------------------------------|
|CGA-113|3473042 |7511607 |4240 |210 |-55 |381.00 |
|-----------------------------------------------------------------|
|CGA-114|3473200 |7511642 |4208 |0 |-60 |247.00 |
-------------------------------------------------------------------
About the
Chinchillas Silver Project
Golden Arrow is earning a 100%
interest in the Chinchillas Silver Project. After less than two
years exploration, the Company announced a NI 43-101 resource
estimate1 in 2013, including:
-27.4
Moz silver / 32.6 Moz silver equivalent in Indicated
Resources (7.2 Mt @ 119g/t silver, 0.57% lead, 0.48% zinc : 141g/t
silver equivalent )
-53 Moz
silver / 72.2 Moz silver equivalent in Inferred
Resources (21 Mt @ 78.5 g/t silver, 0.69% lead, 0.62% zinc : 107g/t
silver equivalent)
The first NI 43-101
preliminary economic assessment2 returned
an after-tax NPV 8% of US$98.5M, highlighting the
benefits of the project's near-surface mineralization, conventional
metallurgy and access to infrastructure. The deposit is open to
expansion and Golden Arrow is now drilling to increase
resources.
1
"Mineral Resource
Estimate for the Chinchillas Silver-Lead-Zinc Project, Jujuy
Province, Argentina" filed on SEDAR dated June
20th, 2013.
2
"Preliminary Economic
Assessment for the Chinchillas Silver-Lead-Zinc Project, Jujuy
Province, Argentina" filed on SEDAR dated January
20th, 2014.
Qualified Persons
The
contents of the news release have been reviewed and approved by
Brian McEwen, P.Geol., VP Exploration and Development to the
Company, and a Qualified Person as defined in National Instrument
43-101.
About Golden Arrow:
Golden Arrow is a
Vancouver-based explorer focused on identifying, acquiring and
advancing precious and base metal projects in Argentina with the
goal of achieving a world class discovery. The main focus is on
advancing the flagship Chinchillas Silver Project located in Jujuy,
Argentina. Golden Arrow has a strong treasury which will allow the
company to advance its Chinchillas Silver Project. Golden Arrow
will continue to execute its strategy to leverage the Company's
exploration exposure by attracting partners to fund work on its
other high quality mineral projects. Golden Arrow is a member of
Grosso Group, a management company specialized in resource
exploration, and working in Argentina where it is highly regarded
and trusted since 1993.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso
Executive Chairman, President, CEO and Director
For further information please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com
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.
FORWARD-LOOKING
STATEMENTS
This news release contains "forward-looking
statements" within the meaning of Canadian securities legislation.
Such forward-looking statements concern the Company's anticipated
results and developments in the Company's operations in future
periods, planned exploration and development of the Chinchillas
project, plans related to its business and other matters that may
occur in the future. These statements relate to analyses and other
information that are based on expectations of future performance as
outlined in the PEA, including silver, lead and zinc production and
planned work programs at Chinchillas. Statements concerning
reserves and mineral resource estimates may also constitute
forward-looking statements to the extent that they involve
estimates of the mineralization that will be encountered if the
Chinchillas property is developed and, in the case of mineral
reserves, such statements reflect the conclusion based on certain
assumptions that the mineral deposit can be economically
exploited.
Forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties and other factors which could cause actual events or
results to differ from those expressed or implied by the
forward-looking statements, including, without limitation: risks
related to precious and base metal price fluctuations; risks
related to fluctuations in the currency markets (particularly the
Argentinean peso, Canadian dollar and United States dollar); risks
related to the inherently dangerous activity of mining, including
conditions or events beyond our control, and operating or technical
difficulties in mineral exploration, development and mining
activities; uncertainty in the Company's ability to raise financing
and fund the development of the Chinchillas project pursuant to the
PEA; uncertainty as to actual capital costs, operating costs,
production and economic returns, and uncertainty that development
activities will result in a profitable mining operation at
Chinchillas; risks related to mineral resource figures being
estimates based on interpretations and assumptions which may result
in less mineral production under actual conditions than is
currently estimated and to diminishing quantities or grades of
mineral resources as properties are mined; risks related to
governmental regulations and obtaining necessary licenses and
permits; risks related to the business being subject to
environmental laws and regulations which may increase costs of
doing business and restrict our operations; risks related to the
Chinchillas property being subject to prior unregistered
agreements, transfers, or claims and other defects in title; risks
relating to inadequate insurance or inability to obtain insurance;
risks related to potential litigation; risks related to the global
economy; risks related to the Chinchillas property being located in
Argentina, including political, economic, social and regulatory
instability. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in the
forward-looking statements. The Company's forward-looking
statements are based on beliefs, expectations and opinions of
management on the date the statements are made. For the reasons set
forth above, investors should not place undue reliance on
forward-looking statements.
The
information provided in this news release addresses the Chinchillas
PEA and is not intended to be a comprehensive review of all matters
and developments concerning the Company. It should be read in
conjunction with all other disclosure documents of the Company. The
information contained herein is not a substitute for detailed
investigation or analysis. No securities commission or regulatory
authority has reviewed the accuracy or adequacy of the information
presented. 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.
SOURCE: Golden Arrow Resources Corporation
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