Golden Arrow Resources Corporation (CVE:GRG) (FRA:G6A) (OTCQB:GARWF) announced a definitive agreement Tuesday to option its Caballos copper-gold project to Hanaq Argentina SA, an explorer with metal projects throughout the country.
The agreement gives Hanaq the opportunity to earn a 70% interest in Caballos by spending US$4 million on exploration at the project over six years, the company said. At that point, a joint venture between the companies would advance the project on a pro rata basis.
"Caballos is one of several copper-focused projects within our more than 180,000-hectare portfolio in Argentina that has demonstrated potential from preliminary geological work,” Golden Arrow CEO Joseph Grosso said in a statement.
READ: Golden Arrow Resources on the hunt for new discoveries as it remains active in Paraguay, Chile and Argentina
The Caballos Copper-Gold Project covers more than 12,000 hectares along the Chilean border in the Andean Cordillera of La Rioja Province, Argentina. The property is in a prospective porphyry copper-gold and epithermal gold-silver district at the intersection between the south end of the Maricunga Copper-Gold Belt with the northern extent of the El Indio Gold-Silver Belt, the company said.
An initial multidisciplinary exploration program led to the discovery of a copper-gold porphyry target, including a magnetic core, measuring 300 meters by 800 meters. Outcrop sampling on the margin of the magnetic core zone encountered 12 meters averaging 2.4% copper within an 18 metre continuous chip sample, the company said.
“With the recent strength in the copper market, we have redoubled our efforts to secure qualified and committed partners such as Hanaq to advance these exploration projects,” Grosso said. “This allows us to build value at those properties while freeing our team to concentrate on our core-focus precious metal projects in Argentina and Paraguay and on copper assets that we believe we can advance faster and more efficiently, such as our Rosales copper project in Chile,"
Golden Arrow's 100%-held Rosales copper project is located less than 90 kilometres from the mining center of Copiapo in Region III, Chile. The region is prolific for mining, with multiple copper and gold mining projects nearby, including the Margarita Mine, an underground copper mining operation adjacent to the Rosales properties, the company said.
The company’s first phase exploration program is underway at Rosales, and a new detailed geophysical survey is being commissioned to map structures related to mineralization and aid in the delineation of drill targets.
In addition to the Caballos project, Golden Arrow has an Argentina copper portfolio that includes multiple projects in geologic districts that host world-class copper and gold deposits, the company said.
Highlights of its portfolio include:
- Mogote – adjacent to the Filo del Sol gold project property owned by Filo Mining and has seen limited drilling on its multiple porphyry and epithermal targets.
- Don Bosco – several copper, gold and silver targets and is in the same sedimentary belt as the Gualcamayo gold mine owned by Mineros SA
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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