Golden Arrow Resources (GRG-V) Jan 17, '14 is providing an update for the Chinchillas silver project in Argentina. Golden Arrow's recent PEA on Chinchillas demonstrated positive economics based on the project's near-surface mineralization, good silver grades, access to infrastructure, and amenability to conventional mining and processing (see news release dated Dec. 5, 2013). A 6,000-metre diamond drill program is scheduled to commence on Feb. 15, and is designed to increase the size of the current resource and define new resources throughout the recently expanded property.
"Following the announcement of the results of the PEA in December, we launched directly into the next stage of resource growth," stated Brian McEwen, vice-president of exploration and development. "Surface exploration combined with recent, and ongoing, geophysical survey results over our expanded land package have already provided exciting new drill targets outside from the known deposit. The existing Chinchillas resource has room to grow in nearly every direction so we are confident that this drill program will see us significantly increase the tonnage at Chinchillas."
In addition to the Chinchillas project, Golden Arrow has acquired the rights to continue to review new project acquisition opportunities that can potentially integrate with Chinchillas defining a new silver region.
Chinchillas exploration program
On July 24, 2013, Golden Arrow announced that it had tripled the size of its land package with the formal issuance of a second licence area. Since that time, the company has completed surface mapping, sampling and a ground magnetic geophysical survey over the new licence, and identified several prospective targets. Golden Arrow is also now completing an extensive ground-based geophysical program including magnetics, CSAMT and induced polarization/resistivity ahead of the drill program, that is scheduled to commence on Feb. 15.
This geophysical program has successfully identified several new exploration target areas where the company believes the resources could be expanded. This includes a new zone approximately one kilometre southeast of the current resource area where coincident magnetic destruction (indicating alteration) and a large, deeply penetrating conductive zone shown in the CSAMT is interpreted to be similar to the Silver Mantos resource area with tuff overlying a chargeable basement. This has the potential to host mineralization similar in style to the Silver Mantos or Basement zones, or a new style hosted in a deeper intrusive. The company plans to drill 10 holes, or 2,300 metres, into these targets. The remaining 3,700 metres will be drilled in 28 holes designed to expand current resources. The Chinchillas deposit remains open to expansion in most directions. The completed geophysics has expanded the targets below the currently defined resources, at depths of 150 to 300 metres. In addition, several areas within the deposit were not drilled at sufficient spacing to be included in the 2013 resource estimate.
There is significant potential that this drill campaign can increase the overall size of the Chinchillas resource by: expanding the known resources at the Chinchillas deposit by infill drilling; and expanding resources through discovery with the new exploration targets identified both the original Chinchillas property and on the adjacent newly acquired property. The phase III program is expected to last approximately six months, and if successful, the company plans an infill drilling program to upgrade the resource categories in order to move the Chinchillas project to a feasibility stage.
Other exploration
In addition to the continuing work at Chinchillas, Golden Arrow is currently evaluating several other prospects in Jujuy proximal to Chinchillas with the potential to add resources in the near term.
Qualified persons
The contents of the news release have been reviewed and approved by Brian McEwen, PGeol, VP of exploration and development for the company, qualified person as defined in National Instrument 43-101.
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Jan 6, 2014 - News Release
Golden Arrow Resources Corp. has arranged a $3-million (U.S.) financing by an industry investor based in Argentina through Golden Arrow's 100-per-cent-owned subsidiary, Valle del Cura SA, which holds and operates the Chinchillas silver project in Argentina. The investor has agreed to finance $3-million (U.S.) for a 3-per-cent equity interest in VdC, based on the recently released preliminary economic assessment of the Chinchillas project (see news release dated Dec. 5, 2013). To facilitate the investment, Golden Arrow shall grant the investor a three-year option to exchange its $3-million (U.S.) equity position in VdC into Golden Arrow shares at a price of $2.38 (U.S.) per share. This financing allows Golden Arrow to continue to fast-track the development of Chinchillas. The proceeds, together with existing funds, will be used for the coming 25,000-metre drill program, which is planned to commence in the first quarter of 2014 and to advance Chinchillas toward the feasibility stage.
"I am delighted to be able to secure funds, avoiding the potential dilution to Golden Arrow at current trading prices. Further, Chinchillas's value is fully acknowledged, as per the PEA, by an industry investor," stated Joseph Grosso, president and chief executive officer. "This financing represents an equivalent raise at $2.38 (U.S.) per Golden Arrow share, a significant premium to the market." This transaction is subject to TSX Venture Exchange approval. A finder's fee may be payable. |
