Golden Arrow Resources Corporation
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Golden Arrow Resources Corporation

September 07, 2016 09:00 ET

Golden Arrow Reports Phase VI Drill Results Free Up Ground for Mine Development and Confirm Chinchillas South Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 7, 2016) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(OTCQB:GARWF)(WKN:A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results of assaying of the first twenty-four drill holes in the Phase VI drilling program at the Chinchillas Silver Project in Jujuy Province, Argentina.

The drilling program is 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.

The objective of the drill program is exploration for resource potential as well as condemnation of certain areas for future mine infrastructure. Drill targets included the Chinchillas South area where seven previous drill holes had returned significant zinc and silver intervals up to 1.5 kilometres away from the main Chinchillas deposit.

"Phase VI drilling has confirmed that the area planned for surface infrastructure is devoid of significant near-surface mineralization. However the area is underlain by narrow high grade structures found over a 440 metre by 120 metre area that are similar in style to those found at Pirquitas. This mineralization, along with Breccia Dome target to the north provides future resource potential," commented Brian McEwen, Golden Arrow's VP Exploration and Development.

Selected highlights from these drill holes include:

  • 159 g/t silver and 1.3% lead over 6 metres in CGA-301RC
  • 164 g/t silver and 2.7% lead over 1 metre in CGA-307, plus
  • 367 g/t silver over 1 metre in CGA-307, plus
  • 138 g/t silver and 1.8 % Pb and 0.6% Zn over 10 metres in CGA-307, plus
  • 285 g/t silver and 4.5 % Pb and 1.4 % Zn over 1 metre in CGA-307
  • 23 g/t silver and 0.6 % Pb and 1.0 % Zn over 104 metres in CGA-308, including
    • 365 g/t silver and 16.7 % Pb and 13.2 % Zn over 0.5 metres
  • 23 g/t silver and 0.4 % Pb and 0.8 % Zn over 151 metres in CGA-311, including
    • 176 g/t silver and 0.8 % Pb and 0.9 % Zn over 3 metres
  • 48 g/t silver and 1.0 % Pb and 1.3 % Zn over 83 metres in CGA-318, including
    • 110 g/t silver, 2.3% lead and 2.1% zinc over 7 metres, and
    • 376 g/t silver, 7.5 % Pb and 3.2 % Zn over 2 metres
  • 255 g/t silver and 0.5 % Zn over 2 metres in CGA-320

The drilling of Phase VI holes is now complete, with a total of 7,188 metres over 34 holes including seven short reverse circulation holes and one hole redrilled for a water well.

Table 1 below includes the assay results from 21 drill holes totaling 5,236 metres in length. A map of the drill hole locations is available on the Chinchillas map page on the Golden Arrow website at: Drill Hole Location Map .

Chinchillas 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 and void space of the breccias. The Chinchillas South target area is located immediately south of the Chinchillas deposit, in an area approximately 1.2 kilometres wide by 1.2 kilometres long. The area is defined by a structural system with a series of hydrothermal breccias, veinlets and stockworking in a wide altered zone. Mineralization was previously intercepted in seven holes in the Phase III program and three additional holes in the Phase V program. The Chinchillas deposit and zones are described in detail in the most recent NI 43-101 Technical Report, filed under Golden Arrow's SEDAR profile dated May 27th, 2016.

Drill Hole Details

The Phase VI drilling ended on August 14, 2016. As was announced on May 25, 2016 the focus of the program was on exploration and condemnation drill holes. The exploration holes were concentrated in three zones which had little information from past drilling but which had enough significant mineralization to provoke follow-up drill testing. Results from two of the three zones have been received in their entirety and are described and reported below. Results from the third target will be released when all assays have been received.

  • Chinchillas South: This zone has been of significant interest to the company since the first drill holes here in the Phase III program all returned significant intercepts (see news release dated May 29th, 2014). Subsequent drill holes in the Phase V drill program continued to indicate the area holds potential for additional resources, particularly at the south end of the target area where drilll holes CGA-272W, CGA-289, CGA-291 defined high grade structures with "Pirquitas-style" mineralization (see news release dated March 3rd, 2016 and March 30th, 2016). Mineralization was described as five to ten centimetre veinlets with banded black silver sulphides and sulphosalts ±sphalerite±pyrite with additional fine stockworking of sphalerite and pyrite forming a zinc halo.

    Additional mapping of the area and drilling during this Phase VI program confirmed the presence of a north-south corridor along the axis of an anticline with mesothermal paleozoic quartz veins. It is interpreted that this zone of open spaces created by the fracturing along, and perpendicular to, the axis of the fold, allowed the mineralized fluids to form sulphides veins and stockworking. So far, this corridor has been traced over 440 metres in length and between 40 and 120 metres in width, and is similar in setting to the Veta Crucero structure at Pirquitas. Drill holes from Phase VI included in this target are: CGA-307, CGA-308, CGA-318, CGA-320, and CGA-321.
  • Breccia Dome: Based on surface mapping and sampling a hydrothermal breccia similar to the Socavon del Diablo zone of the resource area was defined east of the dacite dome and above hole CGA-110. The breccia is hosted in the argillic altered tuffs and has subrounded clasts of dacite, basement sediments and volcanic rocks. Open spaces are filled with galena and silver sulphides. The breccia has a NW-SE strike and was traced with trenches along 60 metres with a best channel sample of two metres averaging 183 g/t silver and 1.5 % lead. Five reverse circulation short holes (48 metres deep) tested the zone (CGA-298RC to CGA-302RC) with a best intercept of six metres averaging 159 g/t silver and 1.3% lead from 12 to 18 metres deep. The target is a breccia structure and it is open in all directions.

As part of the condemnation drill program, eleven holes were drilled in the northern part of the Chinchillas South target to define an area of 1,000 by 650 metres for a possible location of future mine infrastructure. These holes are CGA-305, 306, 309, 310, 311, 312, 313, 314, 315, 316 and 317. As shown in Table 1, only holes CGA-311, 312 and 313, located in the northwest part of the Chinchilla South target, encountered wide zones of low grade mineralization, such as 151 metres with 23 g/t silver 0.8% zinc in hole CGA-311. The mineralization is hosted in Paleozoic sedimentary rocks as sulphide-sulphosalt stockworking and sheeted veinlets.

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
(%)
Breccia Dome CGA-298RC no significant mineralization
Breccia Dome CGA-299RC no significant mineralization
Breccia Dome CGA-300RC no significant mineralization
Breccia Dome CGA-301RC 8 30 22 75 0.8
includes 12 18 6 159 1.3
34 36 2 24
38 40 2 24
Breccia Dome CGA-302RC 8 10 2 102 1.0
18 22 4 24
Chinchillas South CGA-305 70 72 2 28
125 127 2 0.9
180 181 1 58
189 190 1 21 0.7 0.7
209 220 11 0.5
227 234 7 0.5
Chinchillas South CGA-306 59 73 14 0.6
183 188 5 0.8
188 190 2 93 2.0 1.5
Chinchillas South CGA-307 40 74 34 0.5 2.5
includes 40 48 8 0.7 3.3
includes 59 74 15 0.7 3.8
77 78 1 0.6
83 84 1 0.7
91 92 1 0.6 1.4
129 132 3 0.7 0.6
161 164 3 0.5
181 184 3 0.9
194 200 6 0.8 2.8
220.55 223 2.45 39 1.0
227 232.5 5.5 1.4 1.9
235.35 237 1.65 20 2.0 1.2
244 250 6 0.6 0.6
250 252 2 28 2.4 1.1
265 266 1 62
281 282 1 1.3
306 307 1 83
309 313 4 20
318 319 1 164 2.7
320 322 2 367
326 327 1 33
333 336 3 23
337 341 4 66 1.4
342 352 10 138 1.8 0.6
352 359 7 34 0.8 0.8
363 380 17 43 0.9 0.5
includes 368 369 1 285 4.5 1.4
382 383 1 34 1.0
385 387 2 1.2
391 393 2 21 0.7
Chinchillas South CGA-308 53 57 4 2.2
60 64 4 62 1.2 1.8
69 70 1 30 0.5
82 186 104 23 0.6 1.0
includes 82 88 6 23 0.6 1.0
includes 91 92 1 34 0.9 2.1
includes 92 94 2 1.0
includes 94.5 95 0.5 365 16.7 13.2
includes 95 104 9 48 1.0 1.3
includes 108 116 8 30 1.0 1.7
includes 121 125 4 36 1.0 2.2
includes 129 131 2 27 0.7 1.3
includes 135 136 1 44 0.8 0.7
includes 140 141 1 52 1.5 3.5
includes 148 149 1 57 1.8 1.8
includes 155 157 2 29 0.9 1.7
includes 159 161 2 62 1.5 2.6
includes 166 172 6 39 0.9 2.5
includes 174 180 6 1.0
includes 184 186 2 38 0.5
218 226 8 1.0
230 232 2 1.5
Chinchillas South CGA-309 20 21 1 23
52 55 3 56
Chinchillas South CGA-310 60 66 6 0.5
67 68 1 22 0.8 0.6
93 95 2 507
95 96 1 26 0.7
115 116 1 0.9
134 138 4 0.5
143 144 1 0.7
148 149 1 0.7
191 192 1 0.7
232 239 7 0.5
247 249 2 1.0
Chinchillas South CGA-311 68 69 1 1.0 1.3
125 126 1 21 0.7 0.7
126 134 8 0.6
148 149 1 0.8
150 151 1 32
154 305 151 23 0.8
includes 154 201 47 29 0.6 0.9
includes 201 215 14 0.5
includes 216 218 2 26 0.6 0.8
includes 218 244 26 0.5
includes 244 251 7 27 0.5 1.0
includes 253 254 1 119 1.7 5.3
includes 257 259 2 0.8
includes 260 266 6 33 0.9 1.1
includes 267 272 5 0.5
includes 273 274 1 37 0.9
includes 277 279 2 26
includes 279 282 3 176 0.8 0.9
includes 282 293 11 26 1.0
includes 296 301 5 0.6
includes 301 305 4 25 1.5
329 332 3 47 1.3 0.8
350 351 1 0.9
352 353 1 33 0.8 0.5
361 362 1 20 0.5 0.6
387 392 5 1.4
Chinchillas South CGA-312 76 79 3 0.9 0.8
87 104 17 0.5
130 192 62 1.0
includes 130 149 19 0.9
includes 150 151 1 75 1.6 0.8
includes 152 159 7 0.5 1.0
includes 159 166 7 21 1.5
includes 166 181 15 1.1
includes 183 185 2 0.6 0.6
includes 189 192 3 0.8 0.6
205 210 5 0.5
218 221 3 0.6
236 238 2 34 0.8 0.6
241 250 9 27
253 254 1 21
255 258 3 20
261 263 2 0.6
288 290 2 41 0.7
302 304 2 0.7
340 342 2 21 0.7 0.9
Chinchillas South CGA-313 104 115 11 33 1.4
115 121 6 0.5
123 130 7 21 0.9
142 144 2 25 1.0 0.6
147 148 1 63 1.9 0.6
155 157 2 30 1.1
160 162 2 0.7
162 176 14 43 1.2 0.5
includes 174 175 1 144 2.7
184 187 3 88 3.2 0.9
192 200 8 26 0.8
205 212 7 43 1.1 0.8
228 230 2 42 0.8
235 236 1 79 0.7
264 266 2 0.7
266 267 1 64 1.3
269 270 1 26
274 276 2 28
306 313 7 0.7
315 316 1 31 1.0
317 323 6 0.5
325 330 5 55 0.5 1.1
includes 326 327 1 175 0.7 2.6
332 333 1 20 0.7
342 344 2 28 0.7 1.2
347 348 1 29 1.1
355 363 8 1.1
367 368 1 22 0.6 0.8
368 373 5 0.5
382 388 6 0.7
Chinchillas South CGA-314 33 37 4 24
Chinchillas South CGA-315 71 74 3 1.5
Chinchillas South CGA-316 no significant mineralization
Chinchillas South CGA-317 no significant mineralization
Chinchillas South CGA-318 78 81 3 205
88 100 12 33
106 111 5 109 0.6 0.9
115 117 2 0.7
121 125 4 0.5
129 131 2 26 0.5 1.4
144 146 2 42 1.4 2.4
146 149 3 1.1
150 152 2 27 0.8 1.7
153 156 3 0.8
160 169 9 32 0.5 0.9
169 171 2 325 7.4 0.7
171 173 2 54 1.0 1.3
176 178 2 0.5 1.0
183 193 10 26 0.7 1.3
195 198 3 22 0.5 1.2
227 229 2 31 0.7
239 241 2 25 0.5 0.5
259 261 2 26 0.5 1.4
268 351 83 48 1.0 1.3
includes 268 274 6 49 1.1 2.0
includes 274 276 2 121 2.5 3.4
includes 276 290 14 43 0.9
includes 290 297 7 110 2.3 2.1
includes 298 301 3 79 1.5 2.7
includes 301 308 7 1.4
includes 311 316 5 70 2.3 2.9
includes 322 333 11 25 0.6 1.3
includes 333 335 2 376 7.5 3.2
includes 335 338 3 27 0.5 0.9
includes 342 351 9 23 0.5 1.0
355 357 2 0.6 1.1
Chinchillas South CGA-320 74 77 3 3.2
181 186 5 1.2
188 190 2 44 0.8 2.7
195 197 2 0.6
200 201 1 31
207 209 2 255 0.5
225 226 1 30
230 231 1 33 0.7
236 237 1 35 1.4 0.6
242 243 1 30 0.7
248 249 1 0.9 0.7
254 255 1 23
275.9 276.5 0.6 153 2.4 10.9
281 283 2 0.7
Chinchillas South CGA-321 11 12 1 27
14 15 1 22
17 18 1 29
32 33 1 47
41 42 1 53
54 101 47 20 1.0
includes 55 62 7 25 0.5 1.9
includes 62 69 7 1.0
includes 70 72 2 25 1.3
includes 74 85 11 31 1.5
includes 90 93 3 26 0.5 1.1
includes 97 101 4 20 0.7

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.

Table 2. Drill hole location and orientation data

Hole Easting Northing Elevation (m) Azimut (deg) Inclination (deg) Final depth (m)
CGA-212W* 3472754 7512218 4128 0 -90 57
CGA-298RC 3473764 7511801 4125 25 -60 48
CGA-299RC 3473714 7511744 4129 25 -60 48
CGA-300RC 3473748 7511815 4133 25 -59 48
CGA-301RC 3473744 7511847 4145 210 -60 48
CGA-302RC 3473740 7511840 4144 210 -60 23
CGA-305 3473566 7511545 4132 204 -60 251
CGA-306 3473485 7511364 4155 204 -60 200
CGA-307 3473407 7511181 4181 204 -60 401
CGA-308 3473326 7511001 4211 204 -60 266
CGA-309 3473660 7510899 4219 204 -60 338
CGA-310 3473735 7511089 4187 204 -60 401
CGA-311 3473797 7511277 4159 204 -60 401
CGA-312 3473865 7511460 4128 204 -60 356
CGA-313 3473929 7511649 4251 204 -60 401
CGA-314 3472918 7511274 4106 220 -60 302
CGA-315 3473151 7511104 4215 210 -60 302
CGA-316 3472830 7511380 4273 240 -60 260
CGA-317 3473649 7511732 4141 204 -60 200
CGA-318 3473220 7510989 4222 150 -60 359
CGA-320 3473340 7511157 4190 150 -60 290
CGA-321 3473243 7510787 4245 150 -50 293

*Hole 212W was redrilled as a water well at same collar location as Phase V drill hole 212 (reported 1/11/2016) and was therefore not assayed.

Methodology and QA/QC

Sample preparation of all drilling samples was done at Alex Stewart-NOA Sample Room in Palpalá, province of Jujuy. Analyses of the samples 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. 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 Pirquitas silver mine.

ON BEHALF OF THE BOARD
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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