Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

March 30, 2016 09:00 ET

Golden Arrow Reports Final Phase V Drill Results at Chinchillas Silver Project, Including 442 g/t Silver and 4.8% Lead Over 17 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 30, 2016) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN:A0B6XQ), ("Golden Arrow") is pleased to announce the results of assaying of the final 17 drill holes in the Phase V drilling program at the Chinchillas Silver Project in Jujuy Province, Argentina. The drilling program was part of the Chinchillas Project pre-development activities, funded by Silver Standard, which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine, as announced October 1st, 2015.

"With the successful completion of the Phase V program we now look forward to completing the resource estimate update as we continue to advance the project towards the pre-feasibility level along with the engineering, permitting and environmental studies that are underway," commented Brian McEwen, Golden Arrow's VP Exploration and Development. "Our team is also initiating the next phase of the exploration program that will continue to advance new targets, including the Chinchillas South zone located in the contiguous property, where positive drill results have extended the project's potential by up to 1,500 metres south of the Chinchillas deposit."

Selected highlights from these drill holes include:

  • 219 g/t silver and 2.2% lead over 42 metres in CGA-287, including
    • 442 g/t silver and 4.8% lead over 17 metres
  • 169 g/t silver and 2.7% lead over 20 metres in CGA-293, including
    • 1,393 g/t silver and 7.7% lead over 1 metre
  • 182 g/t silver, 1.3% lead and 0.6% zinc over 35 metres in CGA-295, including
    • 456 g/t silver, 3.3% lead and 1.4% zinc over 4 metres

The Phase V drill program started on October 19th 2015 and approximately 15,000 metres of drilling has been completed. Previous results from the program were reported in news releases dated December 2nd 2015, December 16th 2015, January 11th 2016, January 20th 2016, February 4th 2016 and March 3rd, 2016. The Phase V program successfully accomplished several goals including: infill drilling in the Silver Mantos and Mantos Basement zones to upgrade the Mineral Resource categories; the completion of five geotechnical holes to support slope angle recommendations for the potential future pits; the completion of six shallow holes water well holes to characterize ground waters in the project area; and condemnation drilling around the deposit.

Table 1 below includes the assay results from 17 diamond drill holes totaling 2,785 metres in length. A map of the drill hole locations is available on the Chinchillas map page on the Golden Arrow website at: http://www.goldenarrowresources.com/i/maps/2016-03-30_NRM_GRG_GnKc2P.pdf.

Chinchillas Deposit Geology

The Chinchillas deposit is a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the upper part of the vent and brecciated the underlying Ordovician basement meta-sediments. Silver-lead-zinc mineralization in the tuff and tuff breccia units is disseminated within thick mantos (layers), and in the basement is mainly within the fractures of the breccias. Mineralization occurs in four main zones: to the west is situated the Silver Mantos tuff-hosted zone and the Mantos Basement zone; to the east is situated the Socavon del Diablo ("Socavon") tuff-hosted zone and the Socavon Basement zone. The zones are described in detail in the most recent NI 43-101 Technical Report, filed under Golden Arrow's SEDAR profile dated November 2nd 2015.

Drill Hole Details

Mineralized intercepts greater than 20g/t silver, or 0.5% lead or 0.5% zinc are reported in Table 1.

Five holes (CGA-282 to CGA-286) were drilled in the northern part of the Silver Mantos area as part of the on-going infill program. All had a depth less than 83 metres and intercepted near-surface high-grade mineralization as expected.

Holes CGA-287, CGA-288 and CGA-292 to CGA-295 were deeper holes targeting mineralization in proximity to the tuff-basement contact. Mineralization was encountered at the upper Silver Mantos tuffs and in the Mantos Basement unit below the contact.

Hole CGA-297 was drilled along the western edge of the Mantos Basement zone, and returned minimal intercepts, indicating this is the limit of mineralization in this area.

At the northwest part of the Silver Mantos, hole CGA-290 confirmed the continuation of mineralization to the east, at depth in the tuffs, as reported in hole CGA-132 (see news release dated January 6th, 2015).

Hole CGA-296 was collared at the south part of the Silver Mantos area, and intercepted several mineralized layers in the tuffs with high grade in zinc.

Hole CGA-243, as reported in the News Release dated January 20th 2016, originally ended at 54 metres all in the tuffs of the Silver Mantos. In order to complete an infilling in the Mantos Basement in this location, this hole was deepened to 243 metres intercepting additional mineralization in the Silver Mantos and at the lower Mantos Basement.

Holes CGA-289 and CGA-291 were drilled in the South Chinchillas zone, approximately one kilometre south of the main Chinchillas deposit, and approximately 60 and 100 metres northeast of water well hole CGA-272W, respectively. These holes were drilled to test the depth extension of mineralization identified in CGA-272W, as reported in the news release dated March 3rd, 2016. Both holes confirmed high-grade silver intervals within a mineralized envelope of zinc. As with CGA-272W, mineralization in the high-grade areas can be described as five to ten centimetre veinlets with banded black silver sulphides±sphalerite±pyrite. Additional fine stockworking of sphalerite and pyrite form a zinc halo. This mineralization style has similarities with the high-grade veins and breccias seen at the Pirquitas mine.

Table 1. Drill Intercepts >20g/t for Ag or >0.5% for Pb or Zn

TARGET HOLE Note From
(metres)
To
(metres)
Length
(metres)
Ag
(g/t)
Pb
(%)
Zn
(%)
Silver CGA-243 * 8 17 9.0 65
Mantos * 24 52 28.0 89 0.5
*
including
45 47 2.0 335 2.3 1.1
94 105 11.0 71
including 102 103 1.0 301
117 118 1.0 1.0
126 127 1.0 178 0.8
127 128 1.0 1.2
Mantos CGA-243 129 146 17.0 90 0.9
Basement including 132 134 2.0 302 1.7
147 148 1.0 1.2
148 149 1.0 33 0.8
154 156 2.0 29
163 165 2.0 21
168 226 58.0 64
including 217 221 4.0 204 0.8
235 236 1.0 39 1.5
Silver CGA-282 6 9 3 1.0
Mantos 9 10 1 24 1.0
48 49 1 106 2.0
50 62 12 73 1.3
66 68 2 26 0.7 0.8
Silver CGA-283 47 48 1 41
Mantos 50 52 2 135 2.1
56 61 5 89
66 68 2 52
Silver CGA-284 4 8 4 28
Mantos 18 28 10 47
31 36 5 83
36 41 5 0.7
58 60 2 3.2
Silver CGA-285 3 9 6 108
Mantos 12 14 2 226
18 19 1 21
20 21 1 164
27 29 2 299 1.5
30 33 3 37 1.4
Silver CGA-286 28 31 3 44 0.5
Mantos 43 44 1 34 1.0 0.9
66 67 1 20 0.5 1.6
Silver Mantos CGA-287 42 51 9 54 0.9
Mantos CGA-287 113 155 42 219 2.2
Basement including 115 132 17 442 4.8
159 169 10 83 0.6
173 176 3 46
183 184 1 31
190 191 1 40 1.2
Mantos CGA-288 102 107 5 36
Basement 109 119 10 162 1.6
including 111 115 4 320 2.7
122 144 22 287 1.8
including 125 129 4 731 2.4
146 150 4 41 0.7
153 154 1 35 0.8
159 160 1 86 2.0
163 164 1 62 1.2 1.1
175 179 4 54 0.9
South CGA-289 48 95 47 51 0.7 1.2
Chinchilla including 50 51 1 399 2.5 0.8
including 84 86 2 104 1.6 2.0
95 102 7 0.5
102 109 7 42 1.6
111 113 2 0.6
114 118 4 47 0.7 1.0
121 122 1 41 0.7
127 135 8 87 0.9 1.4
including 131 132 1 459 3.5 2.6
147 150 3 0.5
160 161 1 22 0.5
192 193 1 21
193 194 1 0.9
196 198 2 22
Silver CGA-290 108 117 9 118
Mantos 121 123 2 48
133 145 12 51 1.1
153 155 2 26
South CGA-291 45 53 8 0.9
Chinchilla 53 59 6 39 0.6
64 78 14 51 0.5
80 122 42 44 0.8
including 112 113 1 129 1.5 1.9
including 117 122 5 47 0.7 1.7
131 132 1 30 0.6 1.1
133 134 1 204 3.1 0.9
137 138 1 60 1.2 1.1
143 144 1 21 0.6
148 150 2 0.6
150 151 1 30 0.6
157 168 11 28 0.6 1.5
174 182 8 30 0.5 2.3
183 184 1 21
186 187 1 29 0.6
Silver CGA-292 76 80 4 30
Mantos 92 94 2 27
120 121 1 94 1.8
Mantos CGA-292 127 128 1 40
Basement 130 138 8 383 2.4 0.9
144 155 11 192 1.1
including 148 149 1 787 2.1 0.9
156.85 162 5.15 70 0.8
165 188 23 108 0.7
including 175 176 1 771 4.8 0.9
192 193 1 27
Silver CGA-293 72 74 2 27
Mantos 114 116 2 2.5
119 124 5 79 1.8
Mantos CGA-293 131 133 2 82 1.6
Basement 135 155 20 169 2.7
including 138 139 1 1393 7.7
158 161 3 86 1.3
165 173 8 39
175 186 11 107 0.5
189 190 1 39
190 191 1 1538 1.5
193 196 3 91 0.7
207 209 2 73 1.6
Silver Mantos CGA-294 81 96 15 168 1.5
Mantos CGA-294 98 103 5 25
Basement 105 107 2 49
110 111 1 22
113 139 26 125 1.4
156 172 16 132 1.5
183 188 5 24
198 203 5 25
Silver CGA-295 9 15 6 45
Mantos 21 23 2 28 0.6 1.2
41 43 2 0.6 1.3
45 50 5 59 1.2 1.8
51 86 35 182 1.3 0.6
including 71 73 2 363 2.1 1.7
including 76 80 4 456 3.3 1.4
Mantos CGA-295 115 128 13 115 0.6
Basement 131 149 18 376 1.5
including 141 144 3 987 4.5
159 160 1 26
Silver CGA-296 13 15 2 26
Mantos 25 29 4 51
33 35 2 85
53 55 2 0.8
70 72 2 0.8
75 76 1 29 0.5 1.5
78 84 6 27 1.2 3.6
85 86 1 0.9
87 95 8 47 1.6 3.4
Silver Mantos CGA-297 34 40 6 30

Notes to Table 1:

  1. The reported intervals are downhole lengths and are believed to approximate true width; this will be confirmed with geologic modeling.
  2. All grades are uncut.
  3. Intervals marked with "*" were originally reported in the news release dated January 20th, 2016.

Table 2. Drill hole location and orientation data

Hole Easting Northing Elevation
(m)
Azimuth
(deg)
Inclination
(deg)
Final
depth
(m)
CGA-243 3472629 7512375 4131 0 90 243
CGA-282 3472826 7512522 4112 0 -90 71
CGA-283 3472888 7512511 4109 0 -90 80
CGA-284 3472853 7512516 4111 0 -90 74.5
CGA-285 3472773 7512559 4113 0 -90 71
CGA-286 3472820 7512605 4097 0 -90 83.5
CGA-287 3472599 7512579 4108 0 -90 209
CGA-288 3472536 7512575 4113 0 -90 211.6
CGA-289 3473398 7510913 4209 210 -60 200
CGA-290 3472645 7512655 4105 304 -70 200.5
CGA-291 3473419 7510950 4205 210 -60 193.6
CGA-292 3472600 7512525 4111 0 -90 206
CGA-293 3472620 7512501 4119 270 -70 212
CGA-294 3472581 7512425 4127 270 -71 221
CGA-295 3472571 7512377 4131 270 -60 167
CGA-296 3472650 7512200 4143 0 -90 150
CGA-297 3472487 7512503 4126 270 -75 191

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 three acid digestion and ICP-OES detection. The Company follows 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.

Qualified Persons

The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff under the supervision of Brian McEwen, P.Geol., VP Exploration and Development to the Company. Mr. McEwen is a Qualified Person as defined in National Instrument 43-101, and has reviewed and approved the contents of the news release.

About Golden Arrow:

Golden Arrow Resources is a Vancouver-based exploration company focused on creating value by making precious and base metal discoveries and advancing them into exceptional deposits. The Company is currently focused on its Chinchillas Silver Project located in the mining-friendly Province of Jujuy, Argentina. Exploration has progressed rapidly since the acquisition of the project in late 2011. The innovative transaction announced October 1st 2015, positions the Company to maximize shareholder value by fast-tracking Chinchillas to production and becoming a 25% owner of the world-class Pirquitas silver mine.

ON BEHALF OF THE BOARD

Mr. Joseph Grosso, Executive Chairman, President, CEO and Director

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. Statements concerning mineral resource estimates and the interpretation of drill results may also constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Chinchillas project is developed. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: assumptions made in the Chinchillas Mineral Resource Estimate, including geological interpretation, grade, recovery rates, silver, zinc and lead price assumptions and operating costs; the availability of financing for exploration and development activities, including Silver Standard Resources Inc. ("SSRI") meeting certain milestones and exercising its election to proceed with the transactions contemplated under the Business Combination Agreement dated September 30, 2015 among the Company, SSRI and certain other parties; the Company's ability to attract and retain skilled staff; the Chinchillas project development schedule; the exchange rates of the Canadian dollar and United States dollar to the Argentina peso; market competition; ongoing relations with impacted communities; and general business and economic conditions.

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 the transactions contemplated by the Business Combination Agreement; 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, including as recommended in the Chinchillas Mineral Resource Estimate; 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 project 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; and risks related to the Chinchillas project 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 drill results from the Chinchillas project 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 other than as required under applicable law.

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.

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