Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

July 08, 2008 13:42 ET

Golden Arrow Completes Drilling on San Jose and Provides Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN A0B6XQ) ("Golden Arrow" or the "Company") is pleased to announce that it has completed the previously announced diamond drill program on its 100% owned San Jose Gold Project in Jujuy Province, northwest Argentina. A total of 1429m of HQ core was drilled in 18 holes along a 1.2km mineralized trend with three gold zones previously identified by soil sampling and surface channel sampling (see March 4, 2008 News Release). The San Jose property hosts high-grade gold quartz vein occurrences and stockwork-related bulk-tonnage style gold mineralization. Assays will be released once all results from the program have been received.

Plans are underway for the re-commencement of drilling on the Poncha Gold Project in San Juan Province in October, and the Company is contracting a drill rig capable of adequately testing the buried target identified in the discovery hole RCPC13 in the northwest sector of the South Target. The primary objective of the program will be to systematically step out at regular intervals in all directions from hole RCPC13 in order to delineate the extent and tenor of the breccia-stockwork hosted gold-silver-copper-lead-zinc mineralization intersected over a 266m interval, between 129m and 395m depth. The mineralized zone averaged 1.21 g/t gold and 3.30 g/t silver (129m - 395m) including 61m that averaged 3.04 g/t gold and 7.16 g/t silver (270m - 331m) (see March 27, 2008 News Release). Hole RCPC13 bottomed in mineralization and remains open in all directions. At the same time as the drilling program, the Company will also be undertaking surface exploration work on the South Target to identify additional drill targets. Golden Arrow is earning up to a 100% interest in the Poncha Project from Teck Cominco Limited's subsidiary, Teck Cominco Argentina Ltd. ("Teck Cominco") by fulfilling expenditure and tenure maintenance requirements subject to Teck Cominco's option to re-earn up to a 65% interest in the Poncha property (see April 10, 2007 News Release).

Over the next few months the Company's exploration crews will be carrying out surface sampling and mapping programs on a number of its other projects in Jujuy and San Juan provinces, Argentina. An Induced Polarization (IP) geophysical survey is planned to delineate chargeability and resistivity anomalies on the Pescado Gold Project in northeastern San Juan Province. The Pescado Project is located immediately south of Yamana Gold Inc's Gualcamayo Gold Project that currently contains Measured and Indicated resources of 2,284,400 ounces gold and Inferred resources of 698,000 ounces(1) gold. Golden Arrow has an uncapped 1% Net Smelter Royalty "NSR" on Gualcamayo which Yamana has scheduled to begin production in Q4 2008 and is targeted to produce 300,000 ounces of gold per year beginning in 2010, with 25,000 ounces to be produced in the last quarter of 2008, and over 200,000 ounces in 2009. Previous work on the Pescado Gold Project has identified several gold zones with assays including: 1m @ 17.59 g/t gold; 1m @ 10.75 g/t gold and 1m @ 6.68 g/t Au; 16m @ 0.602 g/t Au (including 2m @ 1.27 g/t gold); 2m @ 3.46 g/t gold and 2m @ 3.15 g/t gold (see February 18, 2008 News Release).

About Golden Arrow:

Golden Arrow's Management Team is one of the most experienced in the field today. The Company is focused in Argentina and Peru in highly prospective mining regions and will be drilling on two properties within the next twelve months. Golden Arrow has just over 15 million shares issued and outstanding, a 1% NSR on Yamana's Gualcamayo property being put into production this year, and a strong cash position.

ON BEHALF OF THE BOARD

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

(1) Source - Yamana Gold Inc. website

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.

2008 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 ext.248
    or
    Golden Arrow Resources Corporation
    Bruce Korhonen
    Investor Relations Manager
    1-800-901-0058 or (604) 687-1828 ext.248
    (604) 687-1858 (FAX)
    Email: info@goldenarrowresources.com
    Website: www.goldenarrowresources.com