Additional Drill Results At Chinchillas Silver Project

 

VANCOUVER, BC - Golden Arrow Resources Corporation reported the results of assaying of an additional 14 drill holes in the Phase V drilling program at the Chinchillas Silver Project in Jujuy Province, Argentina. The drilling program is part of the Chinchillas Project pre-development activities, funded by Silver Standard, which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine, as announced October 1st, 2015. The drilling program is on-going and additional results will be announced as assays are received.

The Phase V drill program started on October 19th, 2015 and since then over 13,000 meters of drilling has been completed, with approximately 2,000 meters of the program remaining. The program is comprised mainly of infill holes in the Silver Mantos and Mantos Basement zones to upgrade the Mineral Resource categories, plus five geotechnical holes to support slope angle recommendations for the potential future pits, drilling to characterize ground waters in the project area, and condemnation drilling around the deposit.

The Chinchillas deposit is a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the upper part of the vent and brecciated the underlying Ordovician basement meta-sediments. Silver-lead-zinc mineralization in the tuff and tuff breccia units is disseminated within thick mantos (layers), and in the basement is mainly within the fractures of the breccias. Mineralization occurs in four main zones: to the west is situated the Silver Mantos tuff-hosted zone and the Mantos Basement zone; to the east is situated the Socavon del Diablo ("Socavon") tuff-hosted zone and the Socavon Basement zone. The zones are described in detail in the most recent NI 43-101 Technical Report, filed under Golden Arrow's SEDAR profile dated November 2nd, 2015.

Holes CGA-248, CGA-249, CGA-250, CGA-251, CGA-252, CGA-254 and CGA-255 were drilled to infill the central-south part of the Silver Mantos zone. Assays from these holes confirmed near-surface mineralization with several intersections of substantial grade and widths, similar to those reported from earlier holes in the vicinity.

Holes CGA-253 and CGA-256 were drilled to infill the northern portion of the Silver Mantos and test for an extension of high grade mineralization from hole CGA-193. CGA-253 returned no significant intercepts and those from CGA-256 were minor.

Holes CGA-258, CGA-259 and CGA-261 were drilled to infill the Mantos Basement and all encountered mineralization at the expected depth, just below the contact with the tuff unit.

Hole CGA-257 was a twin hole to CGA-40 and confirmed the mineralization with similar widths and grades.

Holes CGA-260W and CGA-262W were located in the Socavon del Diablo area adjacent to the main creek and were drilled to allow the installation of piezometers to monitor ground water. Hole CGA-260W was drilled with a diamond drill and samples were therefore sent for analysis. CGA-262W was drilled with a rotary drill and no samples were recovered or sent for analysis.