“With this acquisition Golden Arrow has secured full control of a project that demonstrates an excellent value proposition, with short-term resource potential in various areas with exploration upside. We have achieved this acquisition by taking advantage of the strong financial position resulting from our most recent successful transaction. In fact, the lab uses Golden Arrows’ SSR Mining Inc. Stock of November when our proposal for closure was adopted, an increase of approx $ 7.00/ share of $ 19.00 zu $ 26.00 which completely covered the purchase costs of the project, which still leaves us with a strong cash position. Now our technical team will try to do as they did with our Chinchillas project Argentina and calls for a strategically located pre-feasibility exploration project, “ commented Joseph Grosso, Golden Arrow Executive President, President and CEO.
Golden Arrow Vice President, Exploration and Development, Brian McEwenadded, “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 then, the prices of copper, gold, iron and especially cobalt have all risen sharply. Previous evaluations were largely based solely on copper. Our initial review shows that each of these could play an important role in the overall potential economy. We also identified some targets within the 18,000 acres that are the focus of our initial exploration.
The San Pietro Project has almost US $ 15 million and exploration work by previous owners, including over 34,000 feet of drilling, over 1,000 surface samples and various geophysical surveys. Of the project’s five main areas of focus, the Rincones objective was the primary focus of historical work, with multiple boreholes returning assays with significant copper, gold, and cobalt values, including: 28 meters average 1.14% Cu, 0.12g / h Au, and 335ppm Co, and RA-12-DH-003.
Golden Arrow Due diligence assessment has confirmed the significant potential of the known objectives and identified areas where new interpretations and additional work are expected to improve prospects. The 2022 work program will work on the resource demarcation at Rincones, while further evaluating and advancing the four additional known goals in other areas of real estate..
Project description
The San Pietro Project includes 18,448 acres of exploration and exploitation concessions in the Atacama region of Chileabout 100 kilometers north of Copiapo in an active mountain area, home to all the major IOCG deposits and Chile. There is excellent mining infrastructure in the area, and the property is located just west of Capstone Mining’s. Santo Domingo Mine development project in 10 km northeast of Mantos Copper’s Mantos Verde mine (see Figure 1). Capstone Mining Corp. and Mantos Copper Bermuda Limited are currently concluding a business combination. Proximity to other mining projects in the area will not be assured with respect to the prospects of the San Pietro Project.
The San Pietro Project has an extensive database containing results from over 34,000 meters of drilling plus over 1,000 surface samples and various geophysical surveys that have been compiled to identify four main target areas (see Figure 2). The Rincones Target, the focus of historical work, has returned Buerloch Assays with significant copper, gold, and cobalt values, including:
- 1.14% Cu, 0.12g / h Au, and 335ppm Co above 28m from ab 236m down on RA12DH-003.
- 1.20% Cu, 0.21g / h Au, and 579ppm Co 34m from ab 370 m down on RADH-02.
- 1.25% Cu, 0.32g / h Au, and 70ppm Co over 36m from ab 18 m downhole on RARC-17.
- 0.76% Cu, 0.13g / h Au, and 146ppm Co over 20 m ab 250 m down on RA12DH-002
Golden Arrow Due diligence assessment has confirmed the significant potential of the known objectives and identified areas where new interpretations and additional work are expected to improve prospects. The 2022 work program will work on a resource delimitation program at Rincones, while further evaluating and anticipating other areas of real estate. This includes the Colla region, located 2.3 km SW of Rincones, with only four holes, showing all the significant cobalt grades drilled at a wide distance over a strike length of 2.2 km.
- 626 ppm Co over 10 m ab 211 m and CO11DH-001
- 414 ppm Co over 32m from ab 116 m and CO11DH-002
- 310 ppm Co over 17 m ab 229m and CO11DH-003
- 364 ppm Co over 12 m ab 36m from and CO12DH-001
The rodeo target area, located 7.5 km NW of Rincones, has the following borehole with a significant copper / cobalt trap:
- 334ppm Co and 1.03% Cu over 34m from ab 120 m down to RO12DH-005.
In the Radiss Norte Target, located 2.7 km north of Rincones, after surface mineralization with:
- 276 ppm Co over 58m from ab 29m from down on RADDH-01
- 269 ppm Co over 27 m ab 69m from down on RA13DH-004
- 306 ppm Co over 29m from Start on the surface in RADDH-05
The company plans to review the existing data from the entire project and develop an exploration plan to test its full potential.
* This drilling was carried out by previous operators and was not verified independently by the qualified person of the company. Reported intervals are core lengths and true thickness was not estimated at this time.
Geological summary
The San Pietro project is hosted in several Andesite units as part of the Cretan volcanic 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 large north-south regional structure that was instrumental in locating the ore deposits in the area.
Mineralization in San Pietro is typical of an IOCG system containing copper-gold-iron-cobalt minerals and breccias, veins and mantos in a zone of K-feldspar chlorite change. 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 proposes a successful proposal of US $ 3,350,000 and cash for 100% of the property. It was considered that the company would accept risk to pay in full. However, the positive impressions of the due diligence and the fact that approx US $ 15,000,000 spent on the property of previous owners, the company felt very comfortable to continue as this acquisition has the potential to build value for shareholders if we move it forward through 2022 and beyond.
The purchase price for the San Pietro Project is US $ 3,350,000 and cash paid at graduation.
Qualified person
The technical portions of this press release have been reviewed and approved by Brian McEwenP.Geol., VP exploration and development for 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 record for creating value by making precious metal discoveries and base metal discoveries and advancing them in extraordinary deposits. The company has been successful in the price of gold after monetizing its Chinchillas silver discovery and a significant holding in the precious metals producer SSR Mining Inc.
Golden Arrow is actively exploring a portfolio that includes an epithermal gold project Argentinaa district-scale border gold opportunity Paraguaya base metal project in the heart of a leading mining district and Chile and more than 180,000 acres of real estate Argentina.
The company is a member of the Grosso Group, a resource management group that pioneered exploration. Argentina since 1993.
On behalf of the Board of Directors
“Joseph Grosso”
_______________________________
Mr. Joseph Grosso,
Executive President, President and CEO
Neither TSX Venture Exchange nor its regulatory service provider (as that term is defined in the TSX Venture Exchange policy) accepts responsibility for the adequacy or accuracy of this publication.
This press release may contain presumptive statements. Forward-looking statements address future events and conditions and therefore contain inherent risks and uncertainties. Any statements, other than statements of historical fact, that address activities, events, or developments that the Company believes are expected or expected to occur or may occur in the future, including, without limitation, statements about the Company’s plans for its mineral properties; the value, resource potential, and research potential 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 the expected project economy; the work program 2022; the company’s business strategy, plans and outlook; the future financial or operational performance of the company; and future exploration and operation plans are anticipated.
Forward-looking statements are subject to a range of risks and uncertainties that may cause the firm’s actual results to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or materially realized, no guarantee that they will have the expected consequences for the company, or impact on the company. Factors that may actually cause outcomes or events that differ significantly from current expectations include, but are not limited to: the impact of COVID-19; Risks and uncertainties related to the ability to obtain, modify or maintain licenses, permits or surface rights; Risks associated with technical difficulties related to mining activities; and the possibility that future exploration, development or mining results may not be consistent with the company’s expectations. Actual results may differ materially from those currently predicted in such statements. Readers are encouraged to refer to the company’s public release documents for a more detailed discussion of factors that may influence expected future results. The Company has no obligation to publicly update or revise any forward-looking statements unless required to do so by applicable law.
SOURCE Golden Arrow Resources Corporation
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