Golden Arrow Resources Corporation revealed that it plans to zero in on its projects in Chile and Argentina after drilling at its Tierra Dorada gold project in Paraguay continued to hit anomalous values of gold.
The Vancouver, British Columbia-based mining exploration company reported that it has received the final assays from its recent diamond drilling program at the Tierra Dorada project in Paraguay.
The Phase II program included 46 drill holes totaling 1791.80 metres (m) testing the Alvaro and Itayuru prospects. Eight holes returned intervals of gold above 0.5 grams per ton (g/t) with a best interval of 2.6m averaging 5.17 g/t gold.
READ: Golden Arrow announces option of its Mogote copper-gold project in Argentina to Syndicate Minerals
Golden Arrow noted that after a review of the results acquired to date, management has decided to "discontinue funding and terminate the company's option agreement for the project."
"Drilling at Tierra Dorada continues to hit anomalous values of gold, but the high-grade intervals remain short and discontinuous. Despite our efforts using a variety of regional and detailed exploration methods we have been unable to identify cohesive mineralization that we think will lead to an economic deposit,” Brian McEwen, vice president exploration and development said in a statement.
“We believe that there is still prospectivity to the project but it will require a much larger and longer-term program to advance. For this reason, we have decided to terminate our exploration at Tierra Dorada and concentrate on our other projects, particularly San Pietro, where the identification of significant resources appears more likely and achievable in a shorter time frame," he added.
Exploration update
In a sweeping exploration update, Golden Arrow said it has designed its first exploration program at its newly acquired San Pietro copper-gold-cobalt project, in Chile. The next six months constitute a busy spell, taken up by re-logging much of the 34,000m of historic drill core, detailed surface mapping and sampling, trenching, and an updated geophysical program.
Golden Arrow pointed out that the work will “modernize and build the database for the main prospects,” particularly the Rincones Zone, to refine the targets for a subsequent potential resource delineation drill program.
Meanwhile, Golden Arrow also told investors that it has finished drilling its first program at the Libanesa silver-gold project in the Santa Cruz province, in Argentina. The program drilled approximately 1,700m of core in holes ranging from 75-to-250 meters in depth, testing the Cerro Redondo and Lagunita prospects. Final multi-element assays are pending and data compilation and interpretation is ongoing, said the company.
Finally, the company talked about progress on its Flecha de Oro gold project, in Argentina, which includes an option for the Maquinchao properties, two adjacent concessions of 500 and 1500 hectares, in the central Rio Negro province. The company said that the first exploration program has been initiated at the 2,000-hectare Maquinchao.
Golden Arrow said due diligence sampling identified high-sulphidation epithermal signatures including silicified breccia outcrop over one kilometre with strong alteration and coincident gold, copper, and silver anomalies. The program has started with a ground magnetic survey to map the structures and will include detailed surface sampling to identify additional anomalies.
The mining exploration company has a successful track record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits. It 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 base-metal project in the heart of a leading mining district in Chile and more than 180,000 hectares of properties in Argentina.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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