Golden Arrow Expands into Chile with Agreement to Acquire the Atlantida Copper-Gold Project
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NEWS RELEASE – October 11, 2018
Golden Arrow Expands into Chile with Agreement to Acquire the
Atlantida Copper-Gold Project
Vancouver, BC / Globe Newswire / October 11, 2018 / Golden Arrow Resources Corporation (TSX-V:
GRG, FSE: GAC, OTCQB: GARWF ), “Golden Arrow” or the “Company” , is pleased to announce that it
has signed Definitive Agreements to acquire the 3,450 hectare Atlantida Copper-Gold Project (“Atlantida” or
the “Project”) in Chile’s 3 rd Region. Atlantida is an advanced project which combines mineral rights from two
separate owners and includes an extensively drilled copper -gold deposit with a n historic resource estimate.
By consolidating the land package, Golden Arrow believes there is potential to identify new mineralization and
define a significant copper-gold resource.
Previous exploration at Atlantida resulted in an historic resource estimate of 427 million tonnes av eraging
0.43% copper equivalent (see Table 1; A Qualified Person has not done sufficient work to classify this estimate
a current mineral resource, and Golden Arrow is not treating this as a current mineral resource estimate). The
resource includes a deep porphyry copper-gold target and a near-surface skarn with higher gold grades which
together cover an area of approximately 225 hectares. Situated within the consolidated Atlantida property, this
skarn zone is located on the western edge of the claim hosting the historic resource , and extends onto an
adjacent claim (now under opti on by Golden Arrow ) that has historic workings but has had limited modern
exploration. Golden Arrow’s d ue diligence surface rock samples in this area returned up to 3.7 g/t gold and
1.98% copper, providing an excellent target for new mineral resources. In addition, based on the preliminary
due diligence review, Golden Arrow believes the Project is prospective for discovery of similar targets
elsewhere within the consolidated Atlantida properties.
“Expansion into this area of Chile that is host to multi ple world-class copper and gold deposits broadens our
opportunities to acquire advanced projects like Atlantida, in order to potentially quickly build resources and
value for our shareholders.,” commented Joseph Grosso, Executive Chairman, CEO & President. “Golden
Arrow has built an excellent portfolio of precious and base metal assets in Argentina which we continue to
explore.”
Golden Arrow has completed legal and technical due diligence on the Project. The Company is planning an
aggressive program to delineate and drill test targets throughout the Project area. The Atlantida Project will be
managed under New Golden Explorations Inc., a 100% owned subsidiary of Golden Arrow.
About the Atlantida Gold-Copper Project
The Atlantida Project includes two separate land packages that Golden Arrow has consolidated into a single
project through the signing of two Definitive Agreements. The first agreement includes a 48 month earn -in
with minimal costs in the first year and total payments of US$4 million. There is a 2% Net Smelter Royalty
(“NSR”) payable with half available for repurchase under certain terms. The second agreement includes a 24
month earn-in period for a total of US$2 million and a 1% NSR that can be repurchased in full under certain
terms.
The total land area of the consolidated Project is approximately 3,450 hectares. The Project is road-accessible
and is located 60 kilometres northeast of Copiapó at an altitude of 1700 metres above sea leve l. There is an
abundance of both outcrop and old workings.
The Atlantida Project is situated within a metallogenic belt limited by the Atacama Fault System to the west
and the Domeyko Fault System to the eas t. Within the project area, a copper-gold deposit covering a 1.5
kilometre by 1.5 kilometre (225 hectares) area has been identified . Mineralization is hosted by porphyries
intruded into limestone host rocks, as well as in the skarn at the porphyry-limestone contact. These intrusives
News Release October 11, 2018
Golden Arrow Resources Corporation Page 2
are very close in age to others in the region that host major copper porphyry deposits, such as Relincho, Lomas
Bayas, Sierra Gorda and Spence, and epithermal gold vein deposits such as Guanaco and El Peñon.
Previous operators include Inmet Mining Corporation and First Quantum Minerals Ltd. and over 29,000 metres
of drilling , as well as surface sampling and geophysical work has been carried out in the deposit area .
According to the preliminary information received by Golden Arrow, Inmet Mining completed a mineral resource
estimate for the Atlantida deposit in 2012, as shown in Table 1.
Table 1. Historic Resource Estimate (Inmet, 2012).
Zone Tonnage
(Mt)
Copper
(% Cu)
Gold
(g/t Au)
Molybdenum
(ppm Mo)
Copper
Equivalent
(% CuEq)
Porphyry Cu-
Au-Mo 257.5 0.25 0.21 42 0.42
Porphyry Au 130.5 0.06 0.53 3 0.38
Skarn 39.1 0.30 0.62 8 0.72
Total 427.1 0.20 0.34 27 0.43
As it was completed by a major company, it is believed likely that the methodology used was reliable, however,
the key assumptions and parameters used in the estimate are unknown to the Company at this time. Following
a review of the information acquired, Golden Arrow will determine if it will immediately pursue the completion
of a current mineral resource estimate by an independent Qualified Person, using CIM best practices and
following the guidelines of NI 43-101, or first proceed with additional exploration.
Immediately to the west of the resource area previously explored by Inmet Mining-First Quantum , the
consolidated Atlantida project includes old workings in mineralized skarn and porphyry. Golden Arrow collected
31 due diligence rock samples in this area. These returned a maximum of 3.7 g/t gold and 1.98% copper, with
the average result of 0.51g/t gold and 0.49% copper.
Methodology & QA/QC
Due diligence r ock samples were shipped for preparation and analysis at Activation Laboratorios Ltda,
(Actlabs) an internationally recognized assay service provider, in Coquimbo, Chile. Actlabs has ISO 9001:2015
certification and ISO 17025 accreditation. Samples were assayed for gold by Fire Assay /Atomic Absorption
finish plus multi-element package by ICP-OES following a four acid digestion (Code 1F2). Plus 1% Cu samples
were re-assayed by four acids and reading by Atomic Absorption by 7AAS -01 Cu % 4ACID -AAS 1g/100ml
Metales Base. The Company follows industry standard procedures for the work with a quality assurance/quality
control (QA/QC) program. Duplicate and standard samples were inserted in each batch of samples 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 exploration 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 Corporation is an exploration company earning production income. The Company
has a successful track record of creating value by making precious and base metal discoveries and advancing
them into exceptional deposits. Golden Arrow ow ns a 25% share of Puna Operations Inc., a joint venture
operated by SSR Mining, with more than 8 years of forecast production and upside potential at the Pirquitas -
Chinchillas silver mining project. Golden Arrow is actively exploring on its more than 20 0,000 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.
News Release October 11, 2018
Golden Arrow Resources Corporation Page 3
ON BEHALF OF THE BOARD
“Joseph Grosso”
_______________________________
Mr. Joseph Grosso,
Executive Chairman, President and CEO
For further information, please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: [email protected]
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 releas e may contain forward -looking statements. 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. 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.