Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

September 06, 2007 09:30 ET

Golden Arrow Reports Drill Results From Poncha Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2007) - Golden Arrow Resources Corporation ("Golden Arrow") (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN:A0B6XQ) is pleased to announce results from the diamond drill program carried out during April and May 2007 on the southern gold-zinc target (South Target) at the Poncha Project, San Juan, Argentina. As a result of onset of winter conditions, only 1176m in 4 holes (see Figure 1) of the planned 3000m drill program were completed with the remainder expected to be completed in the fall of 2007.

Highlights of the drilling completed to date include:

- 6m @ 7.40 g/t gold from DDHPC9 (including 1m @ 35.03 g/t gold)

- 2m @ 2.68 g/t gold from DDHPC9

- 2m @ 0.92 g/t gold from DDHPC8

The drilling to date on the Poncha Project has confirmed the presence of a large breccia, stockwork and vein-hosted intermediate sulphidation epithermal gold/base metal system at the 2km by 2km South Target. Examples of this style of mineralization found elsewhere include Kelian in Indonesia (8 Moz gold at an average grade of 1.6 g/t) and Rosia Montana, in Romania (8 Moz gold).

The partially completed drill program did not test all of the important priority targets. A complete compilation of the data from the current program will be released when the balance of the 3000m drill program, primarily on the South Target, is completed when weather conditions permit in the fourth quarter of 2007.

Technical Summary:

Golden Arrow entered into an option agreement with Teck Cominco Limited's subsidiary Teck Cominco Argentina Ltd. ("Teck Cominco") to earn an undivided 100% interest in the 3000 ha Poncha Project. 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 51% interest, Teck Cominco is required to fund expenditures equal to twice Golden Arrow's expenditures (to a maximum of $6,400,000). The Poncha Project is located in the Cordillera Frontal of Argentina, San Juan Province. The project includes two main targets, separated by 2km of young, post mineral material; the Northern porphyry copper-gold target and the Southern structural and breccia-related, epithermal target (See April 10, 2007 News Release).

Current exploration has focused on the South Target area testing a hydrothermal-sulphide vein/breccia complex, affecting both the underlying Carboniferous basement metasiliclastic package and the unconformably overlying Tertiary-aged pyroclastic sequence and sub-volcanic units.

Narrow high-grade veins cut the Carboniferous basement and the Tertiary sequence in the Southern Target area. The first drill program on the property (completed by Teck Cominco) intercepted gold mineralization (DDH-PC-1: 1m grading 3.38 g/t gold) with strongly anomalous zinc values (DDH-PC-2: 41m grading 0.2% zinc) in addition to longer intervals with lower-grade gold values (DDH-PC-1: 9m grading 0.53 g/t gold; DDH-PC-2: 9m grading 0.66 g/t gold). These intersections correspond to sulphide-cemented, heterolithic breccias cut by calcite and calcite+sulphide veinlets.

The combination of geophysical surveys (Magnetometry and IP-Resistivity), surface mapping, geochemistry and down-hole data evoke comparisons between the South Target at Poncha with intermediate sulphidation epithermal breccia-hosted gold-base metal systems elsewhere in the world, including Kelian in Indonesia (8 Moz gold at an average grade of 1.6 g/t) and Rosia Montana, in Romania (8 Moz gold).

The Phase II 3000m drill program which commenced in late April 2007 targeted intermediate sulphidation breccias and high-grade gold veins. The drill program was entirely funded by Golden Arrow Resources Corporation and Teck Cominco managed the field work on behalf of Golden Arrow. Due to the onset of winter conditions in the Argentinean Cordillera, only 1176 metres in four holes were drilled before the end of the season. Holes DDH-PC-6, 8 and 9 reached their targeted final depths and all intercepted intermediate sulphidation breccia-style mineralization. DDH-PC-7 was stopped at 34m depth before reaching the high-grade gold vein target it was designed to test.

Highlights from the drill program include:

DDH-PC-6 (000 degrees, -60 degrees, 396 m)(i)

- 8m @ 0.088 g/t Au, 207 ppm Cu (221 to 229m)

- 14m @ 0.111 g/t Au, 473 ppm Cu (303 to 317m)

- 12m @ 0.173 g/t Au, 174 ppm Cu, 625 ppm Pb and 623 ppm Zn (327 to 338m).

DDH-PC-7 (000 degrees, -60 degrees, 34 m)(i)

- Abandoned.

DDH-PC-8 (000 degrees, -60 degrees, 450 m)(i)

- 3m @ 0.667 g/t Au, 110 ppm Cu, 484 ppm Pb and 1900 ppm Zn (164 to 167m)

- 4m @ 0.213 g/t Au, 925 ppm Cu, 776 ppm Pb and over 6288 ppm Zn (204 to 208m)

- 17m @ 0.055 g/t Au, and 831 Zn (232 to 249m)

Including:

- 2m @ 0.920 g/t Au, 151 ppm Cu, 507 ppm Pb and 5074 ppm Zn (430 to 432m)

- 4m @ 0.200 g/t Au, 81 ppm Cu, 1039 ppm Pb and 6566 ppm Zn (442 to 446m).

DDH-PC-9 (000 degrees, -60 degrees, 296.35 m)(i)

- 5m @ 0.332 g/t Au (57 to 62m)

- 9m @ 0.117 g/t Au, 77 ppm Cu, 385 ppm Pb and 785 ppm Zn (63 to 72m)

- 6m @ 7.4 g/t Au, 7.13 ppm Ag, 1096 ppm Cu, 2138 ppm Pb and 5997 ppm Zn (106 to 114m)

Including:

- 2m @ 18.14 g/t Au, 1830 ppm Cu, 1363 ppm Pb and 6352 ppm Zn (107 to 109m)

- 4m @ 2.030 g/t Au, 720 ppm Cu, 2505 ppm Pb and over 5682 ppm Zn (110 to 114m)

- 12m @ 0.021 g/t Au, 91 ppm Cu, 497 ppm Pb and 1738 ppm Zn (148 to 160m)

- 45 m @ 0.192 g/t Au, 75 ppm Cu, 141 ppm Pb and 1643 ppm Zn (251m to bottom)

Including:

- 8m @ 0.790 g/t Au, 67 ppm Cu, 188 ppm Pb and 1645 ppm Zn (257 to 265m)

Including:

- 2m @ 2.68 g/t Au, 78 ppm Cu, 525 ppm Pb and 2440 ppm Zn (261 to 263m)

- 3m @ 0.233 g/t Au, 489 ppm Cu, 477 ppm Pb and 5632 ppm Zn (280 to 283m)

(i) Azimuth, Dip, Final depth, All grades reported are "length weighted averages" (LWA) of one or more individual samples. Samples with gold grades blow detection limit (0.01 g/t gold) have been assigned a 0.005 g/t gold grade.

The second round of drilling on the South Target at the Poncha Project, although suspended due to weather, demonstrates the occurrence of structurally controlled, locally high-grade, vein and breccia-hosted gold/base metal mineralization of epithermal intermediate sulphidation affinity. Drill core logging suggests that mineralized veins are more widespread than surface mapping suggests. To date, only a very limited portion of the 2km by 2km mineralized system has been tested. Drilling is expected to resume once weather conditions permit and a drill rig can be secured late in 2007.

The project operator (Teck Cominco) followed industry standard procedures for work carried out on behalf of Golden Arrow at the Poncha Project. Individual wood core-boxes were used for transportation from the drill site to the logging facility, where the core was photographed before being cut by a diamond saw for sampling. Blank, duplicate, and standard samples were inserted into the sample sequence sent to the lab for quality assurance/quality control (QA/QC) purposes. In total, 126 quality control samples (over 17% of all samples) were analyzed. Golden Arrow detected no QA/QC issues during review of the data.

Analyses of the core samples were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. The drilling program being reported on in this news release was carried out under the supervision of employees of Teck Cominco Argentina Ltd. The technical information contained in this release 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.

Golden Arrow Resources is a member of the Grosso Group, engaged in mineral exploration in Argentina and Peru. The Company has an extensive property portfolio, ten of which are in the drill ready stage, giving the company a great opportunity for a world-class discovery. With an experienced technical and management team, combined with the business development and financial acumen of the Grosso Group, Golden Arrow represents a premier exploration Company that is well funded and well managed.

ON BEHALF OF THE BOARD

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

Figure 1: Southern Target of the Poncha Project: Intermediate Sulphidation breccia target area and High-grade vein Target. Red lines for mapped veins, blue lines for mapped and inferred faults. Blue circles show the location of the second round drill-hole collars, black circles the location of round one. To view Figure 1, please click on the following link: http://www.ccnmatthews.com/docs/Golden%20Arrow.jpg.

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 15

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