Golden Arrow Resources Corp (TSX-V:GRG, OTCQB:GARWF) said it had started an up to 2,000 meter (m) diamond drilling program at its Tierra Dorada gold project in Paraguay.
The work will mainly focus on better defining the high-grade Alvaro target, which spans around four square kilometers (sq km). The company also aims to sink several initial holes at the Itayuru target, which sits around ten km southwest of Alvaro.
"We are very pleased to have this second, fully-funded drill program underway, concurrent with our drilling at the Rosales Copper Project in Chile," said Brian McEwen, the vice-president (VP) of exploration and development at Golden Arrow.
READ: Golden Arrow Resources kicks off RC drill program at Rosales copper project in Chile
"Our reinterpreted geophysics has delineated the complex structural setting below the extensive cover at Alvaro so that we can now move to more advanced drill testing.
"And we prioritized Itayuru as the second drill target within the district-scale project after our surface program returned remarkable gold values of well over a gram-per-tonne in stream sediments."
As reported in January this year, the first drill campaign at Alvaro hit near-surface high-grade gold, with assays including 143.5 grams per ton (g/t) gold over 0.5m. Also encountered was 11.8 g/t of the precious metal over 3.16m.
The Tierra Dorada drilling will start with shallow drilling of up to 1,000 meters in 50 holes, noted Golden Arrow, to comply with the current prospecting permit.
"However, all application requirements for the full exploration permit are complete and Golden Arrow is anticipating the granting of that permit imminently, which will enable the program to transition to include deeper holes," it added.
The alternative deep program includes up to 1,536m in 12 holes as a first priority, with up to 17 holes or 2,096m in total. The program is expected to continue through the fourth quarter of the year, it added.
A member of the Grosso Group, Golden Arrow is exploring a portfolio that includes an epithermal gold project in Argentina, a district-scale frontier gold opportunity in Paraguay, a base-metal project in Chile, and more than 180,000 hectares of properties in Argentina.
Contact the author at giles@proactiveinvestors.com