TSX Venture Exchange (TSX-V): GRG
Frankfurt Stock
Exchange (FSE): G6A
OTCQB Venture Market
(OTCQB): GARWF
VANCOUVER, BC, March 17,
2022 /CNW/ - Golden Arrow Resources
Corporation (TSXV: GRG) (FSE: G6A) (OTCQB: GARWF),
("Golden Arrow" or the "Company") is pleased to
announce that it has, through its wholly owned subsidiary New
Golden Explorations Chile SPA, purchased a 100% interest in the San
Pietro Iron-oxide Copper Gold ("IOCG") Project (the "San
Pietro Project" or the "Project") (formerly known as
Radiss) in Chile from Sumitomo
Metal Mining Chile Ltda ("SMM Chile") for cash consideration
of US$3.35M.
"With this acquisition Golden
Arrow has secured full control of a project that exhibits an
excellent value proposition, with near-term resource potential and
multiple areas with exploration upside. We accomplished this
acquisition by taking advantage of the strong financial position
that resulted from our last successful transaction. In fact,
using the leverage from Golden Arrows' SSR Mining Inc. shareholding
from November when our proposal was accepted to closing, saw an
increase of approximately $7.00/
share from $19.00 to $26.00 which completely covered the purchase cost
of the project, leaving us still with a strong cash position.
Now our technical team will try to do as they did with our
Chinchillas Project in Argentina
and advance a strategically located exploration project to
pre-feasibility," commented Joseph
Grosso, Golden Arrow's
Executive Chairman, President and CEO.
Golden Arrow's Vice President,
Exploration and Development, Brian
McEwen, added, "There is an incredible opportunity here
for Golden Arrow and our
investors. There has been little, or no work done on the
Project since 2014. Since that time the prices of copper, gold,
iron and especially cobalt have all increased greatly. Previous
evaluations were based largely on copper only. Our initial
review indicates each of these could play an important role in the
overall potential economics. We also identified several targets
within the 18,000 hectares which will be the focus of our initial
exploration."
The San Pietro Project has had nearly US$15 million in exploration work by previous
owners, including over 34,000 metres of drilling, over 1,000
surface samples and multiple geophysical surveys. Of the Project's
five main target areas, the Rincones target has been the primary
focus of the historic work, with multiple drill holes returning
assays with significant copper, gold and cobalt values, including:
28 metres averaging 1.14% Cu, 0.12g/t Au, and 335ppm Co, in
RA-12-DH-003.
Golden Arrow's due diligence
review confirmed the considerable potential of the known targets
and identified areas where new interpretations and additional work
are expected to improve the prospects. The 2022 work program
will work toward resource delineation at Rincones, while continuing
to evaluate and advance the four additional known targets and other
areas of the property.
Project Description
The San Pietro Project includes 18,448 hectares of exploration
and exploitation concessions in the Atacama region of Chile, approximately 100 kilometres north of
Copiapo in an active mining district that is home to all the major
IOCG deposits in Chile. There is
excellent mining infrastructure in the area, and the property is
situated immediately adjacent to the west of Capstone Mining's
Santo Domingo mine development
project and 10 km northeast of Mantos Copper's Mantos Verde mine
(see Figure 1). Capstone Mining Corp. and Mantos Copper
Bermuda Limited are currently completing a business combination.
Proximity to other mining projects in the area does not provide any
assurances with respect to the prospects at the San Pietro
Project.
The San Pietro Project has an extensive database that includes
results from over 34,000 metres of drilling plus over 1,000 surface
samples and multiple geophysical surveys, which have been compiled
to identify four main target areas (see Figure 2). The Rincones
target, the focus of the historic work, has returned drill hole
assays with significant copper, gold and cobalt values,
including:
- 1.14% Cu, 0.12g/t Au, and 335ppm Co over 28 m starting at 236
m downhole in RA12DH-003.
- 1.20% Cu, 0.21g/t Au, and 579ppm Co over 34 m starting at 370
m downhole in RADH-02.
- 1.25% Cu, 0.32g/t Au, and 70ppm Co over 36 m starting at 18
m downhole in RARC-17.
- 0.76% Cu, 0.13g/t Au, and 146ppm Co over 20 m starting at 250
m downhole in RA12DH-002
Golden Arrow's due diligence
review confirmed the considerable potential of the known targets
and identified areas where new interpretations and additional work
are expected to improve the prospects. The 2022 work program
will work toward a resource delineation program at Rincones, while
continuing to evaluate and advance other areas of the
property. This includes the Colla area located at 2.3
km SW of Rincones, with only four holes, and all showing
significant cobalt grades drilled at wide spacing over a strike
length of 2.2 kilometres.
- 626 ppm Co over 10 m starting at
211 m downhole in CO11DH-001
- 414 ppm Co over 32 m starting at
116 m downhole in CO11DH-002
- 310 ppm Co over 17 m starting at
229 m downhole in CO11DH-003
- 364 ppm Co over 12 m starting at
36m downhole in CO12DH-001
The Rodeo target area, which is located 7.5 km NW of Rincones,
has the following drill hole with a significant copper/cobalt
intercept:
- 334ppm Co and 1.03% Cu over 34 m
starting at 120 m downhole in
RO12DH-005.
And the Radiss Norte target, located at 2.7 km north of
Rincones, near surface mineralization with:
- 276 ppm Co over 58 m starting at
29 m downhole in RADDH-01
- 269 ppm Co over 27 m starting at
69 m downhole in RA13DH-004
- 306 ppm Co over 29 m starting at
surface in RADDH-05
The Company plans to review the existing data from all over the
Project and develop an exploration plan to test their full
potential.
*This drilling was carried out by previous operators and has
not been independently verified by the Company's Qualified Person.
Reported intervals are core lengths and true thickness has not been
estimated at this time.
Geological Summary
The San Pietro Project is hosted in different andesites units as
part of the Cretaceous volcano-sedimentary sequence associated with
intrusive rocks such as granodiorites and diorites of similar age.
The Project is located east of the Atacama Fault system, a major
north-south regional structure, which was instrumental in the
emplacement of the ore deposits in the area.
Mineralization at San Pietro is typical of an IOCG system with
copper-gold-iron-cobalt minerals in breccias, veins and mantos
within a zone of K-feldspar-chlorite alteration. These structures
are rich in magnetite and specularite and in some cases associated
with calcite and were mainly developed along NW-SE lineaments.
Transaction Details
RCI Capital Group acted as financial advisor to SMM Chile in the
sale process. Golden Arrow submitted
a successful proposal of US$3,350,000
in cash for 100% of the property. Consideration was given to the
fact that the Company would be accepting risk in paying in full up
front. However, given the positive impressions from due diligence
and the fact that approximately US$15,000,000 has been spent on the property by
previous owners, the Company felt very comfortable to proceed as
this acquisition has potential to build value for shareholders as
we advance it through 2022 and beyond.
The purchase price for the San Pietro Project is US$3,350,000 in cash payable at Closing.
Qualified Person
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 value, resource potential and exploration
upside of the San Pietro Iron-oxide Copper Gold (IOCG) Project; the
ability to advance the Project to pre-feasibility; the potential
opportunity for shareholders; the role of various minerals in
expected Project economics; the 2022 work program; 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