Golden Arrow Resources Corporation
TSX VENTURE : GRG

Golden Arrow Resources Corporation

December 11, 2006 09:30 ET

Golden Arrow Resources Corporation: Further Trenching from San Jose Gold Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 11, 2006) - Golden Arrow Resources Corporation (TSX VENTURE:GRG) is pleased to report that it has received results for the second phase of sampling that consists of 22 rock-saw trenches cut on the San Jose gold property, Sierra de Rinconada, Jujuy Province, Argentina. The 100% owned 1,985-hectare San Jose property hosts high-grade gold quartz vein occurrences and stockwork-related bulk-tonnage style gold mineralization. With the results reported on below, the Company has now identified four significant zones along a 1.2km trend with bulk-tonnage gold grades on the San Jose project.

The new results reported herein are from 22 rock-saw trenches located within the core of the San Jose gold anomaly. The anomaly, as defined by soil sampling (see May 29, 2006 News Release), covers an area of 1.2km by 500m and was tested by wide-spaced rock-saw trenches during the Phase I sampling program (see Aug 15, 2006 news release). Phase II trenching was oriented towards evaluating un-sampled areas as well as to determining the lateral continuity of previously-defined mineralized zones. In total 365 rock samples and 26 blanks and duplicates for quality control were analyzed. The samples represent 422.9 linear metres of channel sampling. Results range from below detection level (0.01 ppm) to 5.72 ppm gold. Highlights include: 23.0m averaging 0.99 g/t gold, including 2.5m averaging 1.65 g/t gold and 9.5m averaging 0.85 g/t gold from Trench SJT23; 10.0m averaging 1.70 g/t gold, including 5.0m averaging 2.51 g/t gold from Trench SJT31; and 17.5m averaging 0.64 g/t gold, including 1.5m averaging 5.64 g/t gold from Trench SJT34.

Highlights from the sampling to date are summarized below:

Table 1: Highlights of trench results of the San Jose Gold Project.



-------------------------------------------------
Au Fine Coarse
Total Weighted Fraction Fraction
length Average Au Au
Trench (m) (g/t) (g/t) (g/t)
-------------------------------------------------
SJT01 (i) 14.0 0.89 0.78 2.06
-------------------------------------------------
including 5.5 1.66 1.47 4.18
-------------------------------------------------
SJT02 (i) 17.0 1.15 0.53 6.74
-------------------------------------------------
including 3.0 3.42 1.58 22.87
-------------------------------------------------
SJT04 (i) 7.0 1.39 0.98 17.21
-------------------------------------------------
SJT05 (i) 17.5 1.70 1.04 16.87
-------------------------------------------------
including 5.0 5.30 3.12 55.99
-------------------------------------------------
SJT07 (i) 9.0 0.87 0.93 0.51
-------------------------------------------------
SJT08 (i) 32.0 0.77 0.75 0.87
-------------------------------------------------
including 14.0 1.00 0.95 1.36
-------------------------------------------------
SJT09 (i) 22.0 0.45 0.23 1.99
-------------------------------------------------
including 9.0 0.90 0.41 4.02
-------------------------------------------------
SJT22 16.1 0.50 0.24 2.20
-------------------------------------------------
including 6.1 1.00 0.39 5.08
-------------------------------------------------
SJT23 23.0 0.99 0.54 4.30
-------------------------------------------------
including 2.5 1.65 1.21 4.34
-------------------------------------------------
including 9.5 0.85 0.47 4.05
-------------------------------------------------
SJT27 3.5 0.50 0.28 2.69
-------------------------------------------------
SJT31 10.0 1.70 1.45 3.11
-------------------------------------------------
including 5.0 2.51 2.57 2.14
-------------------------------------------------
SJT34 17.5 0.64 0.18 3.39
-------------------------------------------------
including 1.5 5.64 0.73 34.92
-------------------------------------------------
(i) Previously released in August 15, 2006 News Release


Detailed mapping of the trenches was performed during the second phase of sampling. Structural and geological data was collected at 1:500 scale and the information is being processed in order to assist in defining drill-targets of both high-grade and bulk-tonnage gold mineralization.

Golden Arrow Resources is currently working on the recently conceded (See November 16, 2006 News Release) Timon Cruz property where additional soil and talus fine samples are being collected. Surface exploration is expected to resume on the San Jose Gold property in January 2007 and a Phase I drill program will commence once the required permits are obtained.

Technical Summary:

The San Jose Gold Property is located in the Sierra de Rinconada of Jujuy in the Argentinian Puna. A northeast-trending belt of folded middle Ordovician turbidites that host epizonal orogenic gold deposits characterizes the Sierra de Rinconada.

Between September and October 2006 additional 22 trenches were cleared by hand with channel samples being cut using a hand-held rock-saw, surveyed and sampled on the San Jose Gold property. Trenches are mainly located in areas with gold anomalies defined by soil samples that were not sampled previously. The sampling technique involves cutting a continuous trench of approximately 10 to 15cm wide and 5cm deep along previously cleared outcrop or sub-crop. The location of the trenches was selected based on the alteration intensity and geology with the aim maximizing total sampling length. Individual sample intervals range between 0.8 and 2m and total 422.9m represented by 365 samples. Blank and field duplicates were incorporated to evaluate the quality of the dataset. Because coarse gold is suspected, all samples were analyzed using a metal-screening procedure. The procedure involves a first phase of rock crushing and pulverization followed by sieving at #200 Tyler mesh (0.075 mm). The fine and coarse fractions are then analyzed independently. The individual sample grade is calculated and reported as the average of each assay weighted by the fraction weight. Trench interval results are weighted by length.

Statistically, of the 365 samples analyzed, 11 assayed below detection limit representing approximately 3.0% of the samples. The remaining 97.0% contains detectable gold up to a maximum of 5.72 g/t gold. Of these, 38 samples (10%) have grades above 0.5 g/t gold while 19 samples (5.2%) returned values exceeding 1.0 g/t gold. Of 160 samples with Au greater than 0.25 ppm, 25% have higher grades in the fine fraction assayed than in the coarse. Table 2 shows all the weighted average results from the Phase II trenching program. Table 3 is a summary of field observations for those trenches.

Table 2: Summary of trench results from 22 new trenches at the San Jose Gold project.



-------------------------------------------------
Au Fine Coarse
Total Weighted Fraction Fraction
length Average Au Au
Trench (m) (g/t) (g/t) (g/t)
-------------------------------------------------
SJT18 19.3 0.18 0.19 0.16
-------------------------------------------------
SJT19 41.0 0.16 0.15 0.26
-------------------------------------------------
including 2.5 0.85 0.65 1.95
-------------------------------------------------
SJT20 22.5 0.14 0.07 0.67
-------------------------------------------------
SJT21 21.5 0.18 0.10 0.75
-------------------------------------------------
SJT22 16.1 0.50 0.24 2.20
-------------------------------------------------
including 6.1 1.00 0.39 5.08
-------------------------------------------------
SJT23 23.0 0.99 0.54 4.30
-------------------------------------------------
including 2.5 1.65 1.21 4.34
-------------------------------------------------
and including 9.5 0.85 0.47 4.05
-------------------------------------------------
SJT24 21.5 0.08 0.06 0.20
-------------------------------------------------
SJT25 18.4 0.07 0.06 0.15
-------------------------------------------------
SJT26 21.1 0.28 0.20 0.85
-------------------------------------------------
including 4.5 0.77 0.53 2.31
-------------------------------------------------
SJT27 3.5 0.50 0.28 2.69
-------------------------------------------------
SJT28 15.3 0.02 0.03 0.01
-------------------------------------------------
SJT29 14.5 0.16 0.05 1.59
-------------------------------------------------
including 1.5 1.37 0.30 14.99
-------------------------------------------------
SJT30 16.5 0.34 0.29 0.75
-------------------------------------------------
including 4.0 0.67 0.53 1.59
-------------------------------------------------
SJT31 10.0 1.70 1.45 3.11
-------------------------------------------------
including 5.0 2.51 2.57 2.14
-------------------------------------------------
SJT32 12.0 0.16 0.11 0.42
-------------------------------------------------
SJT33 12.0 0.15 0.13 0.31
-------------------------------------------------
SJT34 17.5 0.64 0.18 3.39
-------------------------------------------------
including 1.5 5.64 0.73 34.92
-------------------------------------------------
SJT35 21.3 0.10 0.09 0.11
-------------------------------------------------
SJT36 11.6 0.02 0.02 0.02
-------------------------------------------------
SJT37 12.3 0.13 0.09 0.36
-------------------------------------------------
SJT38 13.0 0.06 0.06 0.04
-------------------------------------------------
SJT39 42.0 0.12 0.08 0.45
-------------------------------------------------


Table 3: Field observations from 22 new trenches of the San Jose Gold project.



---------------------------------------------------------------------------
Trench Comments
---------------------------------------------------------------------------
SJT18 NE trending fault zone. Black shale, 20% Quartz veining in
sheared shale. less than 3% sulphides.
---------------------------------------------------------------------------
SJT19 Brecciated sandstone and shale. Irregular shaped white quartz
vein up to 0.3m.
---------------------------------------------------------------------------
SJT20 Sheeted veins (less than 3cm) cross-cutting and bedding-
parallel. Sampled orthogonal to rhytmicaly layered sandstone/
shale. less than 15% quartz veins and less than 5% sulphides;
Old workings.
---------------------------------------------------------------------------
SJT21 Strongly veined area in western limb of the San Jose anticline.
Dominant shale and sandstone, approximately 20% almost bedding
parallel quartz veins, approximately 3% suphides.
---------------------------------------------------------------------------
SJT22 Sheeted bedding parallel and flat lying quartz veins in
overturned sandstone and shale; less than 30% quartz, less
than 3% sulpides.
---------------------------------------------------------------------------
SJT23 Sandstone and shale. Two shear zones between 2-7 and 16-19m,
sheeted oxidized quartz veins and low angle veins.
---------------------------------------------------------------------------
SJT24 Rythmically-bedded shale and sandstone; quartz vein density:
less than 10%, 2% sulphides.
---------------------------------------------------------------------------
SJT25 Southern zone. Dominantly sandstone and scarce shale. less than
10% quartz veins, less than 2% sulphides.
---------------------------------------------------------------------------
SJT26 Similar to SJT25. 2-4% quartz veinlet density, 1-2%. sulphides.
---------------------------------------------------------------------------
SJT27 Central northernmost zone. Strongly covered sandstone and shale;
Sheeted oxidized quartz veins and veinlets (2-4%).
2-3% sulphides.
---------------------------------------------------------------------------
SJT28 Sandstone, shale and black shale; Sheeted oxidized quartz veins,
2-3% sulphides (arsenopyrite).
---------------------------------------------------------------------------
SJT29 Rythmically arranged sandstone and shale; dominantly sheeted
quartz veinlets (1-2%). 1% sulphides (arsenopyrite).
---------------------------------------------------------------------------
SJT30 Rythmically arranged sandstone and shale; 3-5% oxidized quartz
veins and veinlets, 1-2% sulphides.
---------------------------------------------------------------------------
SJT31 Northern zone. Rythmically arranged sandstone and shale, 1%
quartz veinlets and arsenopyrite-rich quartz vein (10-15cm),
1-2% sulphides.
---------------------------------------------------------------------------
SJT32 Dominantly sandstone and scarce shale. Quartz veins and veinlets
(2-3/m, 1-2%), sheeted and cross-cutting bedding. 1-2% sulphides
(arsenopyrite).
---------------------------------------------------------------------------
SJT33 Same location as SJT32 but sampled along a different
orientation. Sandstone and shale interbedded. 5-7% quartz veins
(5-10/m) and veinlets (white, massive, sheeted), 1-2% sulphides.
---------------------------------------------------------------------------
SJT34 Northwestern zone. Dominantly sandstone and scarce shale, 3-5%
sheeted quartz veinlets and veins, 1% sulphides.
---------------------------------------------------------------------------
SJT35 Between SJT31 and SJT34. Rythmically arranged sandstone and
shale. Dominantly sheeted quartz veinlets (2-5/m, 1-2%),
1% sulphides.
---------------------------------------------------------------------------
SJT36 Dominantly sandstone and scarce shale, hinge zone of
anticlinorium, less than 1-2% quartz veins and veinlets:
1-2% sulphides.
---------------------------------------------------------------------------
SJT37 Dominantly sandstone and scarce shale, hinge zone of
anticlinorium. Quartz veins and veinlets (1/m, 10-15%),
1-2% sulphides.
---------------------------------------------------------------------------
SJT38 Rythmically arranged sandstone and shale. Quartz veins and
veinlets (less than 1-2%), less than 1% sulphides.
---------------------------------------------------------------------------
SJT39 Sandstone and shale interbedded. Quartz veins (1-5m) and
veinlets (white, massive, dominantly sheeted, 2-3%),
1-2% sulphides.
---------------------------------------------------------------------------


Sampling highlights reported in Table 1 are all from trenches located within the 100 ppb gold soil anomalies in areas of significant quartz veining. The distribution of gold mineralization appears to be structurally controlled as gold distribution is not restricted to a single lithological unit. The sandstone/mudstone contact and rhythmically bedded sequences of sandstone/mudstone are favourable locales for gold deposition. Quartz veinlet density and the concentration of disseminated sulphides directly corresponds to the gold grade of the sampled interval. Additional information on the geologic setting of San Jose gold project is provided in the Company's August 15, 2006 News Release.

In synthesizing data from the two phases of trenching completed on San Jose to date, four areas of particular interest are identified by the trench results (see Figure 1):

Zone 1: Approximately 300m by 50m banana-shaped zone in the northwest part of the sampled area defined by trenches 01, 02, 04, 05, 31 and 34; shale and rhythmically bedded sandstone/mudstone host

Zone 2: Approximately 200m long area in the southeast portion of the sampled area defined by trenches 9, 22 and 23; rhythmically bedded sandstone/mudstone host

Zone 3: Open zone in the southwest portion of the sampled area defined by trenches 07 and 08; shale and rhythmically bedded sandstone/mudstone host

Zone 4: Open zone in the northeast portion of the sampled area defined by trench 27; rhythmically bedded sandstone/mudstone host

Future exploration on the San Jose Gold project will be oriented towards gaining better definition on the known zones and to refining drill targets. In particular follow-up work must be done in the area of trench 22-23 and south of trench 21 (Zone 3) and in the area of trench 27 (Zone 4). Work will comprise additional rock-saw trenching as well as detailed compilation of the structural and geologic information.

Additional maps and photos from the San Jose Gold property are available on the Company's website (www.goldenarrowresources.com).

Analyses for the trench samples were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service providers. Exploration work reported on in this release was carried out under the supervision of Golden Arrow's Argentine Exploration Manager Diego Charchaflie, M.Sc. and Geologists Miguel Soler, Ph.D and Lic. Melissa Angeletti. The technical information contained in this release has been reviewed by Dr. David A. Terry, P.Geo., Vice President Exploration for Golden Arrow, a Qualified Person as defined in National Instrument 43-101.

Golden Arrow is in a strong position for growth with only 7.8 million shares outstanding, a market capitalization of CDN $5.5 million, a treasury with CDN $2.5 million in cash and marketable securities (as of Dec. 31, 2005), no debt and a 1% net smelter royalty ("NSR") on Viceroy Exploration Ltd.'s exciting Gualcamayo gold project that is currently at the feasibility stage. Golden Arrow's property portfolio contains 28 precious and base metal projects that cover over 125,000 hectares of prospective ground in both Argentina and Peru.

Through the Company's alliance with The Grosso Group, new opportunities are continuously being presented and reviewed. Other members of The Grosso Group include IMA Exploration Inc., Amera Resources Corporation, Astral Mining Corporation and Gold Point Energy Corp.

ON BEHALF OF THE BOARD

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.

2006 Number 9

To view Figure 1, please click on the following link: http://www.ccnmatthews.com/docs/Figure1_GRG.jpg


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
    (604) 687-1828 or Toll Free: 1-800-901-0058
    or
    Golden Arrow Resources Corporation
    Sean Hurd
    Vice President Investor Relations
    (604) 687-1828 or Toll Free: 1-800-901-0058
    (604) 687-1858 (FAX)
    Email: info@goldenarrowresources.com
    Website: www.goldenarrowresources.com