Golden Arrow Executes Definitive Agreement for Libanesa Silver- Gold Project, Argentina
Golden Arrow Executes Definitive Agreement for Libanesa Silver-
Gold Project, Argentina
VANCOUVER, BC
,
Oct. 12, 2021
TSX Venture Exchange (TSX-V):
GRG
Frankfurt Stock Exchange (FSE):
G6A
OTCQB Venture Market (OTCQB):
GARWF
/CNW/ -
Golden Arrow Resources Corporation
(TSXV: GRG) (FSE: G6A) (OTCQB: GARWF),
("Golden Arrow"
or the
"Company")
is
pleased to announce that it has executed a definitive option agreement (the "Option") to acquire a 75% undivided interest the Libanesa project
("Libanesa") in
Santa Cruz
province,
Argentina
.
Libanesa is a 14,500-hectare silver-gold (lead) project located at the north eastern margin of the Deseado Massif Gold-Silver metallogenic
province, approximately 70 km west from the port of Puerto Deseado, 40 km northwest of the Cerro Moro Mine operated by Yamana Gold and
100 km northeast of the Don Nicolas mine operated by Cerrado Gold.
Figure 1: Libanesa location in
Santa Cruz Province
. Libanesa hosts several
diversified geological, geochemical and geophysical supported targets and is permitted for drilling.
"Our team is eager to move forward on this highly prospective project and we are finalizing the field programs to quickly and efficiently advance
the targets towards discovery,"
commented
Joseph Grosso
,
Golden Arrow's
Executive Chairman, President and CEO.
Golden Arrow
is planning to mobilize an exploration team to
Santa Cruz
this month. The initial plan is to complete additional surface work which
may include geophysical surveying, with the intent of refining the targets for a drill program to start in the first quarter of 2022.
Project Highlights
Cerro Plomo is the principal prospect and is characterized by a well mineralized Au/Ag hydrothermal breccia that is exposed at surface and
supported by both chargeability and resistivity geophysical anomalies at depth. Peripheral polymetallic veins at the Libanesa Main prospect
represent secondary targets and are supported by strong base metal +/- Au mineralization. The Lagunita prospect is a third prospective zone,
which has reported some encouraging rock chip Au values from more typical low sulfidation type epithermal veins and breccias. This prospect will
require additional surface exploration to vector into the potentially better mineralized parts of this extensive vein system, where intermittent vein
occurrences, outcropping/subcropping through post mineral cover, have been mapped over a strike length of at least 2.3 km. (see News Release
June 1
st
, 2021
for a summary on previous work completed at Libanesa).
Summary of Terms
Mirasol Resources Ltd. ("Mirasol") has granted
Golden Arrow
an option to earn a 75% interest in Libanesa over six years (the "Option Period") by:
incurring exploration expenditures totaling
US$4,000
,000
US$500,000
per year during the first 2 years; and
US$750,000
per year thereafter
making cash payments to Mirasol totaling
US$1,000,000
US$100,000
to be paid on the 2
nd
, 3
rd
and 4
th
anniversaries.
US$250,000
on the 5
th
anniversary; and
US$450,000
on the 6
th
anniversary.
The initial
US$500,000
in exploration expenditures is a firm commitment, but it may be incurred over 24 months instead of 12 months, if all permits
required for exploration are not in place by the end of
March 2022
. In addition,
Golden Arrow
is required to complete a minimum of
2,000m
of
drilling by the end of the second year.
Golden Arrow
will be the operator during the Option Period.
Upon completion of the Option, Mirasol and
Golden Arrow
will hold 25% and 75%, respectively, in a participating JV company holding Libanesa. If
either party's equity interest is diluted below 10%, it will convert to a 2% net smelter return royalty.
Qualified Persons
The technical portions of this news release have been reviewed and approved by
Brian McEwen
, P.Geol., VP Exploration and Development to the
Company and a Qualified Person as defined in National Instrument 43-101.
About
Golden Arrow
:
Golden Arrow Resources Corporation is a mining exploration company with a successful track record of creating value by making precious and
base metal discoveries and advancing them into exceptional deposits. The Company is well leveraged to the price of gold, having monetized its
Chinchillas silver discovery into a significant holding in precious metals producer SSR Mining Inc.
Golden Arrow
is actively exploring a portfolio that includes an epithermal gold project in
Argentina
, a district–scale frontier gold opportunity in
Paraguay
, a base-metal project in the heart of a leading mining district in
Chile
and more than 180,000 hectares of properties in
Argentina
.
The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in
Argentina
since 1993.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_________________________________
Mr.
Joseph Grosso
,
Executive Chairman, President and CEO
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.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore
involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments
the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the Company's plans
for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company;
and future exploration and operating plans are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or
events to differ materially from current expectations include, among other things: the impact of COVID-19; risks and uncertainties related to the
ability to obtain, amend, or maintain licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining
activities; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations.
Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's
public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no
obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.
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For further information:
please contact: Corporate Communications, Tel: 1-604-687-1828, Toll-Free: 1-800-901-0058 Email:
CO: Golden Arrow Resources Corporation
CNW 07:00e 12-OCT-21