Golden Arrow Resources Corporation

Golden Arrow Resources Corporation

April 10, 2007 09:15 ET

Golden Arrow Acquires Option on High Potential Gold-Copper Project in San Juan Province, Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2007) - Golden Arrow Resources ("Golden Arrow") (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN A0B6XQ) is pleased to announce that it has entered into an option agreement with Teck Cominco Limited through its subsidiary Teck Cominco Argentina Ltd. ("Teck Cominco") to earn an undivided 100% interest in the interest held by Teck Cominco in the 3,000 ha drill-ready Poncha gold-copper project located in San Juan Province, Argentina. Terms are summarized below.

Teck Cominco has discovered a potentially large gold-mineralized hydrothermal system on the Poncha property with two target-types identified. A bulk tonnage gold-copper zone in a porphyry environment occurs on the northern part of the property; samples have assayed up to 7,200 ppm copper and 4.7 g/t gold, and a structural and breccia-related higher-grade gold target in an epithermal setting is located 2km to the south; grab samples have yielded up to 42.49 g/t gold.

Work carried out to date on the Poncha project by Teck Cominco includes geologic mapping, extensive talus fines and rock geochemical sampling, ground magnetic and IP/Resistivity geophysical surveys and a first round of 1,627m of diamond drilling completed during the first half of 2006. Golden Arrow is planning to commence a 3,000m 10-12 hole diamond drilling program on the Poncha project in mid-April with Teck Cominco acting as operator for the initial drill program.

The southern target area, separated from the northern target by 2km of post mineral cover, is a 2km by 2km hydrothermal-sulphide breccia complex, affecting both the underlying Carboniferous basement metasiliclastic package and the unconformably overlying Tertiary-aged pyroclastic sequence. A total of 426 talus fines samples were taken over the southern target area; of these 70 contained greater than or equal to 0.1 g/t gold (with a maximum of 3.26 g/t gold) and 76 contained greater than or equal to 500 ppm zinc. From a total of 162 rock samples taken from the outcrops in and around the southern target area, 29 assayed between 0.1 g/t and 1 g/t gold and 9 assayed greater than 1 g/t gold with a maximum of 42.49 g/t from a vein grab sample. A total of 18 rock samples contained greater than 2,000 ppm zinc with a maximum of greater than 10,000 ppm zinc. Two drillholes on the southern target, collared 500m apart, returned intercepts of long low grade gold (DDH-PC-1: 9m grading 0.53 g/t gold; DDH-PC-2: 9m grading 0.66 g/t gold) and locally higher grade (1m grading 3.38 g/t gold) gold mineralization with strongly anomalous zinc values (DDH-PC-2: 41m grading 0.2% zinc).

The understanding of the intermediate sulphidation breccia-hosted gold system at Poncha is still at an early stage. No drilling has been carried out on the high grade gold veins (surface grab samples up to 42.49 g/t gold) on the southern part of the property which may indicate gold focusing along a breccia margin. Three WNW-ESE trending gold-mineralized "corridors" (250m wide by 1km long) have been defined by surface geochemical sampling (rock and talus fines), geophysical interpretation of lineaments (ground magnetic and IP/Res surveys) and mapping of available outcrop/subcrop, and offer potential for discovery of a high grade gold deposit.

Analysis of the alteration, structural setting and geochemistry of the southern target area indicates the potential for gold mineralization in large, structurally controlled breccia bodies or structural zones of "intermediate sulphidation" affinity (e.g. Kelian, Indonesia, 8Moz gold, Rosia Montana, Romania, 8.5Moz gold, and Fruta del Norte, Ecuador). Resource and grade definition in other intermediate sulphidation breccia-hosted gold deposits worldwide requires concentrated drilling as higher-grade gold mineralization is often located in narrow quartz or sulphide-only veins and vein swarms surrounded by, or on the margins of, larger bodies of low grade breccia hosted mineralization. Bulk mining is often applicable as the low and high grade are combined to form a bulk mineable deposit.

The northern target zone consists of a potassic-altered diorite porphyry complex with low-grade gold-copper porphyry-style mineralization intercepted in drilling to date. Higher grade gold (up to 8 g/t gold) is located in enargite-bearing structures, cutting the surrounding pyroclastic country rock, and may represent the "roots" of a high sulphidation gold system. A total of 231 talus fines samples were taken from the northern target area. Of these samples 16 returned greater than or equal to 0.1 g/t gold and 26 contained greater than or equal to 100 ppm copper. A total of 506 surface rock samples have been collected, 10 containing greater than 1 g/t gold to a maximum of 4.7 g/t gold and 54 containing greater than 1,000 ppm copper to a maximum of 7,220 ppm copper. Drilling results included: 200.5m grading 0.12 g/t gold (from 9.5-210m) and 257m grading 0.12% copper (from 19-276m) in DDH-PC-3; and 112m grading 0.22 g/t gold (from 3-115m) and 9m grading 0.19 g/t gold (123-140.4m); 32.2m grading 0.15% copper (from 3-35.2m) and 10m grading 0.13% copper (from 51-61m) in DDH-PC-5. Average grade for this mineralized porphyry appears to be in the order of 0.17 g/t gold and 0.14% copper. Potential for higher-grade bulk tonnage mineralization in the drilled porphyry system is possible in one of the inter-mineral diorite phases on the margins of the intrusive complex and is a secondary target of the drilling program.

The Agreement with Teck Cominco requires Golden Arrow to undertake work expenditures on the property totaling US$3,200,000 over three years with a first year's commitment of US$650,000. Teck Cominco will manage the first exploration program under a six month management contract with Golden Arrow. In addition Golden Arrow is responsible for payments totaling US$2,880,000 to the underlying property owner over three years. The underlying owner will retain a 1% NSR royalty in the property. Teck Cominco has an option to re-earn up to a 65% interest in the Poncha Property through a "Back-In" right and an "Additional Earn-In" right. In order to exercise its initial Back-In right to acquire a 55% interest, Teck Cominco is required to fund expenditures equal to twice Golden Arrow's expenditures (to a maximum of $6,400,000). The Agreement provides that Teck Cominco Limited may be required to make a Cdn$750,000 private placement in Golden Arrow and under certain conditions Teck Cominco may contribute to a percentage of the payments to the underlying property owner. Also Teck Cominco reserves a 1% NSR royalty if it chooses not to exercise its initial back-in right. To increase its interest to 65% Teck Cominco would need to spend a further $10,000,000.

The work to date on the Poncha Project, reported on herein, was carried out by Teck Cominco. All analytical work was carried out by Alex Stewart (Assayers) Argentina S.A., an internationally accredited assay laboratory. Dr. David A. Terry, P.Geo., a Qualified Person for Golden Arrow Resources Corporation has also reviewed the information contained in this news release.

The agreement is subject to TSX-V approval.


Mr. Joseph Grosso, President & C.E.O.

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.

2007 Number 7

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Golden Arrow Resources Corporation
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828
    Golden Arrow Resources Corporation
    Sean Hurd
    Vice President Investor Relations
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)