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
1st, 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
2nd, 3rd and 4th
anniversaries.
- US$250,000 on the 5th
anniversary; and
- US$450,000 on the 6th
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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SOURCE Golden Arrow Resources Corporation