TSX Venture Exchange (TSX-V): GRG
Frankfurt Stock Exchange (FSE): G6A
OTCQB Venture Market (OTCQB): GARWF
VANCOUVER, Oct. 31, 2018 /CNW/ - Golden Arrow
Resources Corporation (TSX-V: GRG, FSE: G6A, OTCQB: GARWF), "Golden
Arrow" or the "Company") is pleased to announce that the
Company has entered into a Definitive Agreement (the "Agreement")
to acquire up to 100% of the Indiana gold-copper project in Chile's 3rd Region ("Indiana" or
the "Project"). Indiana is located approximately 35 kilometres
from the Company's new Atlantida copper-gold project (see News
Release dated October 11,
2018). The Project features a near surface deposit of
high-grade gold and copper vein-hosted mineralization, with an
historic resource estimate. The deposit area is permitted for
mining, and there are currently two ramps allowing underground
access for exploration and development.
Highlights of the Indiana Project include:
- An historic Inferred mineral resource estimate of over 600,000
ounces of gold equivalent ("AuEq") consisting of 3,093,700 tonnes
averaging 2.8 g/t gold and 1.6% copper, at a 4 g/t AuEq cut-off,
supported by a NI 43-101 Technical Report. (see Table 1 below; A
Qualified Person has not done sufficient work to classify this
estimate a current mineral resource, and Golden Arrow is not treating this as a current
mineral resource estimate.)
- 13,000 meters of diamond drilling completed in over 40 holes,
2000 chip and trench samples.
- Metallurgical testing: Flotation tests indicate recoveries of
90% for gold and 92% for copper for sulphide mineralization.
- Significant potential to increase the size and grade of the
deposit: Access ramps into the deposit have allowed for more
detailed exploration. Recent work returned channel samples
averaging 1.6 metres width and 9 g/t AuEq, over 150 metres in ramp
A, and an average of 1.5 metres width and 7.4 g/t AuEq, over 100
metres in ramp B, approximately 70 metres lower. New
mineralized vein splays have also been identified.
- High potential for additional mineralization and new resources
throughout the property.
- Potential to fast track the Project to production, with
existing mining permits and access drifts completed.
- Easy access to water and energy, no environmental or community
concerns
"With the addition of the advanced-stage Indiana Project to
the recently acquired Atlantida Project we solidify our presence in
Chile, emphasizing our commitment
to the rapid identification of new resources, and value growth for
our shareholders," commented Joseph
Grosso, Executive Chairman, CEO & President.
"Indiana has the added benefit
of two growth paths – a fast track to production thanks to the
existing mining permit and historical resources, and exploration
upside both within the known vein system and throughout the
property."
Golden Arrow has completed legal
and technical due diligence on the Project. The Indiana Project
represents a near term production target. The deposit area is
permitted for mining and there are currently two completed ramps
allowing access for exploration and development. The Company
is planning a program to complete a resource estimate at the
Measured and Indicated level in the existing deposit area, as well
as an economic assessment, and an aggressive program to delineate
and drill test targets throughout the Project area to delineate
other resources. The Indiana Project will be managed under New
Golden Explorations Inc., a 100% owned subsidiary of Golden Arrow. Both the Indiana and Atlantida Projects will be managed
out of a new exploration camp proximal to both Projects.
About the Indiana Gold-Copper Project
Golden Arrow has executed a
Definitive Agreement with Mineria Activa SpA, ("MSA"), a Chilean
private equity investment management firm focused on exploration to
production-stage assets in the Mining sector. Terms for the
Definitive Agreement are US$100,000
payment on signing, followed by US$15M in payments staged over 48 months.
Prior to Golden Arrow making the
last payment of $7M at the end year
4, MSA has the option of retaining 25% of the Project, which will
then move forward on a pro rata basis.
The 2,300 hectare, road-accessible Indiana Project is located
approximately 40 kilometres north of the city of Copiapó in the 3rd
Region of Chile at 1470 metres
above sea level. Indiana is
situated within an Iron-oxide-copper-gold (IOCG) belt that includes
deposits such as Manto Verde, Candelaria
and Cerro Negro Norte. The property hosts historic
mineral resources in a high-grade gold-copper vein system, with a
permit for mining over the area of the historic resource.
Golden Arrow believes there is
excellent potential to expand the known deposit, as well to
delineate additional mineralization regionally on the
Project.
Work by previous operators of the Project includes 13,000 metres
of diamond drilling in 40 holes, 2,000 chip and trench samples, and
detailed geology and structural modeling. Eight major ~1
metre wide veins ranging up to 1.5 kilometres in length and down to
400 metres depth have been delineated. In 2013, a mineral
resource estimate was completed for MSA, including a supporting
technical report following the guidelines of National Instrument
("NI") 43-101 titled "Technical Report Indiana Gold and Copper
Project Region III Chile". The Qualified Person for the technical
report is Dr. Eduardo Magri, who at
the time of the report was a registered and active Fellow of the
South African Institute of Mining and Metallurgy. Dr.
Magri is a mining engineer with a Master's degree from the
Colorado School of Mines and a PhD from
the University of Witwatersrand with over 30 years of experience as
a Project Engineer and Expert Consultant for several mining and
engineering companies. In 2010, he was awarded the Alexander
Sutulov National Mining Award in Chile. In addition to consulting, he has
served as an Associate Professor in the Mining Engineering
Department at the Universidad de Chile.
The historical resource estimate for the veins averaging over 4
g/t gold-equivalent is summarized in Table 1:
Table 1. Inferred Resource Estimate @ 4g/t AuEq
cut-off
Vein
|
Tonnage
(KT)
|
Au
(g/t)
|
Cu
(%)
|
Mo
(%)
|
AuEq
(g/t)
|
AuEq
ounces
('000)
|
Bondadosa
|
910,400
|
3.4
|
1.0
|
0.019
|
5.5
|
160,900
|
Rucas
|
750,200
|
2.1
|
1.7
|
0.006
|
5.6
|
133,800
|
Flor de
Espino
|
638,100
|
3.5
|
1.3
|
0.002
|
6.3
|
128,300
|
Indian
III
|
351,400
|
1.9
|
1.4
|
0.009
|
4.9
|
55,200
|
Rosario
|
443,600
|
2.7
|
3.1
|
0.010
|
9.0
|
128,00
|
Total
|
3,093,700
|
2.8
|
1.6
|
0.010
|
6.1
|
607,000
|
|
|
Notes:
|
The following
parameters were used in the calculation of equivalent grade: Gold
equivalency based on the following prices: gold -US$1,100/oz,
copper -US$2.80/lb, molybdenum -US$12/lb, and adjusted for the
following recovery rates: gold –75%, copper –88%, molybdenum –60%
(e.g. 1 lbCu = (1 x $2.80) / $1,100 x (88% / 75%) Au Eq.)
Areas, tonnages and metal content are rounded to the nearest
hundred square meters, tonnes and ounces respectively; vein
thickness is rounded to the nearest centimeter, grades are rounded
to two decimal places. Rounding may result in apparent differences
between tonnes, grade and metal content.
|
Readers are cautioned that Golden
Arrow's QP has reviewed the NI 43-101 for this historical
resource estimate and believes it to have been a reliable estimate
of Inferred resources at the time of its publication, however a
Qualified Person has not done sufficient work to classify this
estimate a current mineral resource, and Golden Arrow is not treating this as a current
mineral resource estimate. Golden
Arrow plans to proceed with a program to delineate current
mineral resources by an independent Qualified Person, using CIM
best practices and current long-term pricing.
The report by Dr. Magri also summarized the metallurgical test
work that has been completed, reporting rougher cleaner
(flotation) gold recoveries in sulphide mineralization of over 85%,
with a maximum of 97%, and copper recoveries ranging from 90% -
96%, indicating the potential to develop a gold-copper flotation
circuit to process sulphide mineralization. Potential to recover
gold and copper in mixed and oxide material requires further
testing.
More recently, MSA has developed two ramps that access the
Bondadosa vein area. The due diligence review of the data
disclosed that ramp A is approximately 90 metres in length and
channel samples over 150 metres in the tunnel returned an average
of 1.6 metres width with 9.0 g/t AuEq (4.6 g/t Au, 2.5% Cu, 222 ppm
Co and 125 ppm Mo). In ramp B, 70 metres below ramp A, channel
samples over 100 metres returned an average of 1.5 metres width
with 7.4 g/t AuEq (3.5 g/t Au, 2.4% Cu, 84 ppm Co and 39 ppm
Mo). Additionally, Ramp A detected two new vein splays from
the main structure. One of the splays returned 1.5 m @ 5.92 g/t Au and 2.39% Cu.
Qualified Persons
Brian McEwen, P.Geol., VP
Exploration and Development to the Company and a Qualified Person
as defined in National Instrument 43-101, has reviewed and approved
the contents of the news release.
About Golden Arrow:
Golden Arrow Resources Corporation is an exploration company
earning production income. The Company has a successful track
record of creating value by making precious and base metal
discoveries and advancing them into exceptional deposits.
Golden Arrow owns a 25% share of
Puna Operations Inc., a joint venture operated by SSR Mining, with
more than 8 years of forecast production and upside potential at
the Pirquitas -Chinchillas silver mining project.
Golden Arrow is actively exploring a
new portfolio of advanced projects in Chile, as well as other targets within its
portfolio of more than 200,000 hectares of properties in
Argentina. The Company is a member of the Grosso
Group, a resource management group that has pioneered exploration
in Argentina since 1993.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso,
Executive Chairman, President and CEO
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this release.
This news release may contain forward-looking
statements. 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.
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SOURCE Golden Arrow Resources Corporation