Chinchillas Silver Deposit

tnw



(via Thenewswire.ca)

Vancouver, BC / T
heNewswire
/July 9, 2015 /
Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company")
is pleased to announce the results from ten drill holes in the Phase IV drilling campaign at the Chinchillas silver-lead-zinc deposit in Jujuy Province, Argentina. Nine of the ten holes include numerous significant mineralized intersections that are expected to contribute to new resources. High grade highlights of the holes include:




- 7 metres @ 466 g/t silver, 5.8% lead in CGA-173, including 2 metres @ 1306 g/t silver, 9.8% lead; and,



- 7 metres @ 266 g/t silver in CGA-179 including 1 metre @ 1109 g/t silver.




"These results complete the data from more than 11,000 metres of new drilling that we will use to update the resource estimate for Chinchillas this summer. We expected our step-out drilling to define the limits of the deposit, but in fact we have hit new mineralization in most of our holes. This should translate not only to an increase in resources now, but a strong likelihood of continued expansion of the Chinchillas deposit in the future."
commented Golden Arrow VP Exploration and Development, Brian McEwen.


Table 1 below includes the results from nine complete drill holes, plus the final 246 metres of hole CGA-181 (the first 253 metres of this hole was reported in the release dated June 25
th
, 2015). A map of the drill hole locations will be posted to the Chinchillas map page on the Golden Arrow website at:

http://www.goldenarrowresources.com/i/maps/chinchillas/2015-07-09_DPIVD.pdf

. Interactive 3-D models of the drill holes are also available on the Golden Arrow website and at

www.corebox.net

.


Drill Hole Details


Mineralized intercepts are reported in Table 1. The western portion of the Chinchillas deposit includes the upper Silver Mantos zone and lower Mantos Basement zone. The eastern portion of the deposit includes the upper Socavon del Diablo ("Socavon") zone, and the lower Socavon Basement zone. The zones are all part of a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the central part of the vent (Silver Mantos and Socavon zones) and brecciated the underlying Ordovician basement schists (Mantos Basement and Socavon Basement zones). Silver-lead-zinc mineralization in the upper zones is disseminated within thick mantos (layers), and in the lower zone is mainly within the fractures of the breccias. The zones are described in detail in the most recent NI 43-101 Technical Report, filed on SEDAR on February 15
th
, 2015. Drill core from these holes was subject to visual inspection and qualitative analysis using a hand-held X-ray fluorescence (XRF) spectrometer for silver, lead and zinc. Based on these results, intervals deemed to have low or no mineralization had pulps composited by the laboratory prior to analysis, using equal masses, with the resulting composite samples representing 2 to 6 metre intervals.


Socavon del Diablo Mantos Target


To expand the known mineralization in the upper (tuff) units of the Socavon del Diablo, hole CGA-178 was drilled in the south-east limit of the planned Socavon pit, and encountered limited zinc mineralization.


Socavon Basement Targets


Four holes were drilled to test the expansion of the mineralized basement rocks in the Socavon Basement. Two of them (CGA-179 and CGA-181) were drilled into the basement rocks east of the Socavon del Diablo and the other two holes (CGA-180 and CGA-182) were drilled north of the Socavon del Diablo.


Hole CGA-179 was drilled from the Socavon del Diablo towards the north-east starting in the tuff units and intercepted an intrusive dike of dacite from 156 to 205 metres, and then continued into the basement rocks from 238 metres until the end of the hole. Brecciated zones in the dacite were filled with sulphides with up to three metres averaging 654 g/t silver and 6.2% lead. In the basement rocks other brecciated zones host high grade intervals, such as seven metres averaging 266 g/t silver, including one metre with 1109 g/t silver, and from there until the end of the hole at 400 metres continuous low grade zinc mineralization was reported.


The news release dated June 25, 2015 included results from the top half of hole CGA-181, to 253 metres. The remainder of the intercepts (to 499 metres total depth) are reported here, and overall the hole was mineralized nearly continuously from 102 to 421 metres, averaging 21 g/t silver and 0.6% zinc over those 321 metres.


These holes, together with the previously mineralized reported intervals in holes CGA-160, CGA-166 and CGA-170 are expected to increase the existing resource.


Hole CGA-180 drilled through the basement and hole CGA-182 drilled through a dacite body, both starting at 100 metres north of the previously planned Socavon pit, and drilled towards the north. Both encountered several mineralized intervals as shown in Table 1.


Silver Mantos Target


Three holes targeted the Silver Mantos: holes CGA-171, CGA-175 and CGA-176. Hole CGA-171 is located in the northern part of the Silver Mantos and it encountered surface mineralization in the first 20 metres with best intercept of eight metres averaging 135 g/t silver.


As previously reported in News Release of March 17, 2015, hole CGA-148 had several intervals without recovery from 26 to 44 metres depth. A twin hole, CGA-175, was drilled to 56 metres depth and confirms a thick mineralized layer of 13 metres averaging 57 g/t silver, 1.1% lead and 1% zinc starting at 24 metres depth.


Hole CGA-176 was located in the south part of the Silver Mantos to test the extension of both near-surface mineralization and the deep mantos mineralization previously found in holes CGA-152, CGA-126 and CGA-143, among others. Several near surface mineralized layers were encountered with a best intercept of 21 metres averaging 66 g/t silver, 1.1% lead and 1% zinc starting at 14 metres deep, and including three metres with 191 g/t silver, 2.5% lead and 1.8% zinc. The deep mantos mineralization corresponds to several mineralized intervals between 169 and 202 metres deep as shown in Table 1.


All three holes are expected to contribute to expanding the resource.


Mantos Basement Target


In order to expand the resource area of the Mantos Basement, holes CGA-174 and CGA-177 were drilled in the south part of the target.


Hole CGA-174 reported a high grade zone of brecciated basement rocks averaging seven metres of 466 g/t silver and 5.8% lead starting at 54 metres depth, including two metres with 1306 g/t silver and 9.8% lead. This hole is located 40 metres south-east of holes CGA-87 and CGA-79 and shows higher silver grades than these holes. As a result, in addition to contributing to an expansion of resources in this area, results from this hole indicate that the target remains open to the south where the Mantos Basement is closer to surface.


Table 1. Drill Intercepts >
20g/t for Ag and >0.5% for Pb and Zn