Golden Arrow Options Advanced-Stage Indiana Gold-Copper Project, Chile
Golden Arrow Options Advanced-Stage Indiana Gold-Copper
Project, Chile
TSX Venture Exchange (TSX-V):
GRG
Frankfurt Stock Exchange (FSE):
G6A
OTCQB Venture Market (OTCQB):
GARWF
VANCOUVER
,
Oct. 31, 2018
/CNW/ -
Golden Arrow Resources Corporation (TSX-V: GRG, FSE: G6A, OTCQB: GARWF),
"Golden Arrow" or the "Company")
is pleased to announce that the Company has entered into a Definitive Agreement (the
"Agreement") to acquire up to 100% of the
Indiana
gold-copper project in
Chile's
3
rd
Region ("Indiana" or the "Project").
Indiana
is
located approximately 35 kilometres from the Company's new Atlantida copper-gold project (see News Release dated
October 11
,
2018). The Project features a near surface deposit of high-grade gold and copper vein-hosted mineralization, with an historic
resource estimate. The deposit area is permitted for mining, and there are currently two ramps allowing underground access for
exploration and development.
Highlights of the Indiana Project include:
An historic Inferred mineral resource estimate of over 600,000 ounces of gold equivalent ("AuEq") consisting of 3,093,700
tonnes averaging 2.8 g/t gold and 1.6% copper, at a 4 g/t AuEq cut-off, supported by a NI 43-101 Technical Report. (see
Table 1 below; 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.)
13,000 meters of diamond drilling completed in over 40 holes, 2000 chip and trench samples.
Metallurgical testing: Flotation tests indicate recoveries of 90% for gold and 92% for copper for sulphide mineralization.
Significant potential to increase the size and grade of the deposit: Access ramps into the deposit have allowed for more
detailed exploration. Recent work returned channel samples averaging 1.6 metres width and 9 g/t AuEq, over 150 metres in
ramp A, and an average of 1.5 metres width and 7.4 g/t AuEq, over 100 metres in ramp B, approximately 70 metres lower.
New mineralized vein splays have also been identified.
High potential for additional mineralization and new resources throughout the property.
Potential to fast track the Project to production, with existing mining permits and access drifts completed.
Easy access to water and energy, no environmental or community concerns
"With the addition of the advanced-stage Indiana Project to the recently acquired Atlantida Project we solidify our presence in
Chile
, emphasizing our commitment to the rapid identification of new resources, and value growth for our shareholders,"
commented
Joseph Grosso
, Executive Chairman, CEO & President.
"
Indiana
has the added benefit of two growth paths – a fast
track to production thanks to the existing mining permit and historical resources, and exploration upside both within the known
vein system and throughout the property."
Golden Arrow
has completed legal and technical due diligence on the Project. The Indiana Project represents a near term
production target. The deposit area is permitted for mining and there are currently two completed ramps allowing access for
exploration and development. The Company is planning a program to complete a resource estimate at the Measured and Indicated
level in the existing deposit area, as well as an economic assessment, and an aggressive program to delineate and drill test targets
throughout the Project area to delineate other resources. The Indiana Project will be managed under New Golden Explorations Inc.,
a 100% owned subsidiary of
Golden Arrow
. Both the
Indiana
and Atlantida Projects will be managed out of a new exploration camp
proximal to both Projects.
About the Indiana Gold-Copper Project
Golden Arrow
has executed a Definitive Agreement with Mineria Activa SpA, ("MSA"), a Chilean private equity investment
management firm focused on exploration to production-stage assets in the Mining sector. Terms for the Definitive Agreement are
US$100,000
payment on signing, followed by
US$15M
in payments staged over 48 months. Prior to
Golden Arrow
making the last
payment of
$7M
at the end year 4, MSA has the option of retaining 25% of the Project, which will then move forward on a pro rata
basis.
The 2,300 hectare, road-accessible Indiana Project is located approximately 40 kilometres north of the city of Copiapó in the 3rd
Region of
Chile
at 1470 metres above sea level.
Indiana
is situated within an Iron-oxide-copper-gold (IOCG) belt that includes
deposits such as Manto Verde,
Candelaria and Cerro Negro Norte
. The property hosts historic mineral resources in a high-grade
gold-copper vein system, with a permit for mining over the area of the historic resource.
Golden Arrow
believes there is excellent
potential to expand the known deposit, as well to delineate additional mineralization regionally on the Project.
Work by previous operators of the Project includes 13,000 metres of diamond drilling in 40 holes, 2,000 chip and trench samples,
and detailed geology and structural modeling. Eight major ~1 metre wide veins ranging up to 1.5 kilometres in length and down to
400 metres depth have been delineated. In 2013, a mineral resource estimate was completed for MSA, including a supporting
technical report following the guidelines of National Instrument ("NI") 43-101 titled "Technical Report Indiana Gold and Copper
Project Region III Chile". The Qualified Person for the technical report is Dr.
Eduardo Magri
, who at the time of the report was a
registered and active Fellow of the South African Institute of Mining and Metallurgy. Dr. Magri is a mining engineer with a Master's
degree from the
Colorado School of Mines
and a PhD from the University of Witwatersrand with over 30 years of experience as a
Project Engineer and Expert Consultant for several mining and engineering companies. In 2010, he was awarded the Alexander
Sutulov National Mining Award in
Chile
. In addition to consulting, he has served as an Associate Professor in the Mining Engineering
Department at the Universidad de
Chile
.
The historical resource estimate for the veins averaging over 4 g/t gold-equivalent is summarized in Table 1:
Table 1. Inferred Resource Estimate @ 4g/t AuEq cut-off
Vein
Tonnage
(KT)
Au
(g/t)
Cu
(%)
Mo
(%)
AuEq
(g/t)
AuEq
ounces
('000)
Bondadosa
910,400
3.4
1.0
0.019
5.5
160,900
Rucas
750,200
2.1
1.7
0.006
5.6
133,800
Flor de Espino
638,100
3.5
1.3
0.002
6.3
128,300
Indian III
351,400
1.9
1.4
0.009
4.9
55,200
Rosario
443,600
2.7
3.1
0.010
9.0
128,00
Total
3,093,700
2.8
1.6
0.010
6.1
607,000
Notes:
The following parameters were used in the calculation of equivalent grade: Gold equivalency based on the following prices: gold -US$1,100/oz, copper -US$2.80/lb, molybdenum -US$12/lb, and adjusted for the following
recovery rates: gold –75%, copper –88%, molybdenum –60% (e.g. 1 lbCu = (1 x $2.80) / $1,100 x (88% / 75%) Au Eq.) Areas, tonnages and metal content are rounded to the nearest hundred square meters, tonnes and
ounces respectively; vein thickness is rounded to the nearest centimeter, grades are rounded to two decimal places. Rounding may result in apparent differences between tonnes, grade and metal content.
Readers are cautioned that
Golden Arrow's
QP has reviewed the NI 43-101 for this historical resource estimate and believes it to
have been a reliable estimate of Inferred resources at the time of its publication, however 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.
Golden Arrow
plans to proceed with a program to delineate current mineral resources by an independent Qualified
Person, using CIM best practices and current long-term pricing.
The report by Dr. Magri also summarized the metallurgical test work that has been completed, reporting rougher cleaner (flotation)
gold recoveries in sulphide mineralization of over 85%, with a maximum of 97%, and copper recoveries ranging from 90% - 96%,
indicating the potential to develop a gold-copper flotation circuit to process sulphide mineralization. Potential to recover gold and
copper in mixed and oxide material requires further testing.
More recently, MSA has developed two ramps that access the Bondadosa vein area. The due diligence review of the data
disclosed that ramp A is approximately 90 metres in length and channel samples over 150 metres in the tunnel returned an average
of 1.6 metres width with 9.0 g/t AuEq (4.6 g/t Au, 2.5% Cu, 222 ppm Co and 125 ppm Mo). In ramp B, 70 metres below ramp A,
channel samples over 100 metres returned an average of 1.5 metres width with 7.4 g/t AuEq (3.5 g/t Au, 2.4% Cu, 84 ppm Co and
39 ppm Mo). Additionally, Ramp A detected two new vein splays from the main structure. One of the splays returned
1.5 m
@
5.92 g/t Au and 2.39% Cu.
Qualified Persons
Brian McEwen
, P.Geol., VP Exploration and Development to the Company and a Qualified Person as defined in National Instrument
43-101, 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
owns 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 a new portfolio
of advanced projects in
Chile
, as well as other targets within its portfolio of more than 200,000 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
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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. 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
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looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in
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CO: Golden Arrow Resources Corporation
CNW 11:42e 31-OCT-18