Golden Arrow Resources Corporation (CVE:GRG) (OTCMKTS:GARWF) revealed it is to acquire up to 100% of the prospective Flecha de Oro gold project in the province of Rio Negro, Argentina.
The property includes the Puzzle and La Esperanza exploration properties, which cover 1,952 hectares and 9,968 hectares respectively.
Under the terms of the option, Golden Arrow must make staged payments to the vendor totaling US$2,093,000 over seven years to earn a 100% interest in both Puzzle and La Esperanza. The vendor retains a 1% royalty, which can be reduced to 0.25% for an additional payment of US$1 million.
Due diligence sampling by Golden Arrow has already included a result of five metres (m) grading 13.1 grams per ton (g/t) gold and 0.2 m grading 11.2 g/t gold from chip samples across two parallel quartz veins located 600 m apart.
A ground magnetic survey successfully delineated a mineralized vein corridor coincident with a magnetic low, the firm added.
"Flecha de Oro is an excellent complement to our portfolio of active gold projects in Chile and Paraguay, and it continues our work in Argentina, where the Grosso Group has been successfully exploring for over 25 years," said CEO Joseph Grosso.
"Rio Negro is a very good jurisdiction where another Grosso Group company, Blue Sky Uranium Corp., has succeeded in making discoveries. We look forward to similar achievements at this project.”
The gold mineralization at Puzzle occurs in epithermal quartz veins, stockworks and hydrothermal breccias, hosted by a 150-250-million-year old volcanic complex.
The La Esperanza property is located in the same regional geological environment, with mineralization hosted by an older suite of granites and granodiorites with aplitic and pegmatitic dikes. It also hosts 17 kilometres of veins, with widths of up to 7 m.
Next steps at the site are additional ground magnetic surveys, to be followed by additional surface sampling, mapping, trenching, and drilling as targets are identified and advanced.