Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

November 16, 2006 14:42 ET

Golden Arrow Resources Corporation: Gold Rock and Soil Anomalies on the Timon Cruz Gold Property, Jujuy

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FWB:GAC)(WKN:AOB6XQ) is pleased to announce the concession of the 100% owned, 2,000-hectare Timon Cruz Gold Property in Sierra de Rinconada district of Jujuy Province, Argentina as well as the results from Phase I rock and soil sampling program. Analytical sample results identify multiple gold anomalies associated with quartz-gold vein occurrences. The target on Timon Cruz is a high-grade quartz-gold vein deposit.

Phase I soil sampling comprised 206 samples collected over a 1,800m by 500m grid in the central portion of the Timon Cruz property. Rock samples from the same area returned assays ranging from 0.09 ppm to 9.84 ppm or grams/tonne (g/t) gold (See Figure 1). Gold anomalies identified by the soil-sampling program remain open in all directions (See Figure 2).

Golden Arrow is currently planning further work on the property which will include extension of the soil grid, composite talus-fines and detailed rock sampling as well as geologic mapping of the main litholigic units to constrain drill targets. The Company has recently been carrying out a comprehensive channel sampling program on the San Jose gold project in Jujuy aimed at delineating the extent of mineralized zones reported on in the August 16, 2006 News Release. Results from this work are expected shortly.

Technical Summary:

Timon Cruz is located in the Sierra de Rinconada in the Argentinian Puna of Jujuy Province. Gold mineralization in the district is commonly related to quartz veins hosted in a folded and faulted sequence of Ordovician rocks. Mineralized bodies have diverse geometries relative to folds such as bedding-parallel laminated veins, straight-crosscutting brittle veins, fault-related veins or anticline-hinge "reefs". In general, mineralization extends along the fold trend and seems to be located in first-order anticlines.

To date exploration work at Timon Cruz has included reconnaissance mapping (aimed at identifying favorable lithologic and structural settings), rock-sampling and soil sampling. At Timon Cruz, 10 rock samples from outcrop, old workings and mine dumps were collected. Rock samples were collected over a strike extent of approximately 1,500m parallel to the axial planes of two anticlines. Results are listed below, in Table 1.



Table 1: Preliminary Rock Sample Results from Timon Cruz Property, Jujuy
--------------------------------------------------------------------------
Au
Au (+200#) Au (-200#) Weighted
Length ppm (Fine ppm (Coarse Average
Sample Type (m) Description Fraction) Fraction) (ppm)
--------------------------------------------------------------------------

--------------------------------------------------------------------------
GA 1558 Float Selected quartz
veins in dump of
small open pit 1.24 2.71 1.36
--------------------------------------------------------------------------
GA 1559 Chip 1.5 Bleached shale
mm-scale quartz
veining and
pyrite-arsenopyrite
aggregates up to
6 cm across 0.08 0.27 0.09
--------------------------------------------------------------------------
GA 1560 Float Carbonaceous shale,
quartz veining and
5% sulfides 0.36 0.38 0.36
--------------------------------------------------------------------------
GA 1561 Chip 0.5 Small open pit
carbonaceous shale
and large
pyrite-arsenopyrite
cubes 0.19 0.18 0.19
--------------------------------------------------------------------------
GA 1562 Chip 1.0 Sandstone with 3 to 5%
sulfides and discordant
quartz veins 0.20 0.12 0.19
--------------------------------------------------------------------------
GA 1563 Float Black shales with 3 to
5% sulfides that form
large aggregates, BLPV 0.44 0.33 0.44
--------------------------------------------------------------------------
GA 1564 Float Carbonaceous shale with
up to 7% arsenopyrite
but without quartz
veins 2.37 2.15 2.36
--------------------------------------------------------------------------
GA 1565 Chip 2.0 Saddle reef in the
southern area, milky
quartz and hematite 0.13 0.04 0.12
--------------------------------------------------------------------------
GA 1566 Mine Dump Small underground old
working, carbonaceous
shale with high sulfide
contents (5%) and quartz
veins 9.35 24.53 9.84
--------------------------------------------------------------------------
GA 1567 Chip 0.4 BLPV (greater than 40%)
in the steeply dipping
eastern limb 0.11 0.04 0.11
--------------------------------------------------------------------------
Notes: BLPV equals Bedding, laminated parallel vein; sample results are
calculated as the average between the fine and coarse fraction weighted by
each fraction weight.


Since coarse gold is a common occurrence within the Sierra de Rinconada deposits, rock samples are processed as two sub-samples obtained after grinding and sieving the material through a 200 Tyler mesh (75 microns). Samples are reported as the weighted average of both fractions. Interestingly, at Timon Cruz the fine fraction has similar grades than the coarse fraction (e.g. GA1561, GA 1564). This indicates that gold distribution is relatively homogeneous within the sampled intervals.

The first phase soil sampling comprised 206 samples collected every 50m along 19 east-west lines spaced 100m apart. The soil grid covered a 1,800m by 500m area (Figure 1) located in the central portion of the Timon Cruz property where the rocks samples reported above were collected.

Soil samples ranged from less than 5 ppb (below detection limit) up to 428 ppb gold. Samples with values above the detection limit represent 41% of the samples. Approximately 10% of the soils have gold concentrations higher than 20 ppb. From the limited population of samples collected to date, the best rock sample results come from samples located close to soil anomalies (See Figure 2). Two main anomalous areas were detected. In the northern portion of the grid a north-south oriented anomaly extends over approximately 1.0km in length and up to 250m in width. To the south a north-northwest oriented anomalous trend, also approximately 1km in length, is developed. Both anomalies have a morphology consistent with a high-grade vein source rather than a wider disseminated body.

In the area of the soil grid on the Timon Cruz project the A-horizon is generally absent and the sampled material is a mixture of B and C horizons. The sampling procedure involved collecting approximately 1 kg of material finer than a Tyler mesh #9 (2.05mm) from 5-20cm below the surface in order to reduce the influence of aeolian transported particles. The sampled material is submitted to the lab, where it is dried and processed. Reported results are from material finer than a #80 Tyler mesh (0.18mm).

The next phase of exploration work at Timon Cruz will involve extension of the soil grid, surface chip and channel rock sampling, and geologic and structural mapping of the claimed area. This work program will be carried out over the next several months. Additional maps and photos from the Timon Cruz gold property are available on the Company's website (www.goldenarrowresources.com).

Analyses for the soil samples reported herein were performed by SGS Lakefield Research, an internationally recognized assay service provider, in Santiago, Chile whereas that analyses for the rock samples were performed by Alex Stewart Assayers in Mendoza, Argentina. 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 Senior Geologist Gustavo Rodriguez, Ph.D. 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 Gualcamyo 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 8

To view Figure 1: Timon Cruz Rock Sample Locations, please click on the following link: http://www.ccnmatthews.com/docs/grg1.jpg

To view Figure 2: Timon Cruz Soil Grid, please click on the following link: http://www.ccnmatthews.com/docs/grg2.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