Drill Tracker Weekly: Golden Arrow Drills Long Interval on Southern Edge of Chinchillas Deposit

- April 21st, 2015

Golden Arrow announced results from the ongoing drill program at its Chinchillas silver-lead-zinc project in Argentina. Drilling on the southeastern edge of the current drill plan includes hole CGA-166, which returned two significant intervals of mineralization.

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Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Golden Arrow Resources (TSXV:GRG)

Price: $0.34

Market cap: $17 million

Cash estimate: $1 million

Project: Chinchillas

Country: Argentina

Ownership: 100 percent

Resources: 24 Mt @ 91 g/t Ag, 0.65% Pb, 0.31% Zn indicated; 22 MT @ 57 g/t Ag, 0.61% Pb, 0.68% Zn inferred

Project status: resource expansion

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  • Golden Arrow announced results from its ongoing drill program on its 100% owned Chinchillas silver-lead-zinc project in Jujuy Province, Argentina. Golden Arrow acquired on option to acquire 100% of the property in 2012 by making a series of cash payments totalling US $1.8 ($1.355 ongoing and pending by July 2015). There is an addition US$ 1.2 million payment on commencement of commercial production.
  • Drilling on the south-eastern edge of the current drill plan includes hole CGA-166 which returned two significant intervals of mineralization within the diatreme breccia hosted mineralization. Highlights included a 6 metre interval grading 189 g/t Ag, 1.5% Pb and 0.6% Zn starting at 164 metres depth as well as a deeper interval starting at 210 metres of 107 metres of continuous mineralization averaging 41 g/t Ag, 0.5% Pb and 1.1% Zn. The Company reports that additional holes in the new zone have been completed in the area and with results expected in May 2015.
  • The current resource estimate on the Silver Mantos area and Mantos Basement used a $22 per ounce silver price, $1.00 lead and zinc prices and a 40 g/t silver equivalent cut-off. The 43-101 compliant resource outlined an indicated resource of 24.6 million tonnes grading 91 g/t Ag, 0.65% Pb and 0.31% Zn, as well as an inferred resource of 22 million tonnes of 57 g/t Ag, 0.61% Pb and 0.68% Zn.
  • The February 2015 PEA estimates an after-tax NPV (8%) of $226 million, with an IRR of 24.3%, using a $22 Ag price. The project outlined in the PEA is currently projected to have a low strip ratio of 2.4:1 and total cash operating cost of $9.22 per ounce Ag (before base metal credits) and a payback period of 3.4 years. Total capital is projected at $237 million.
  • Preliminary metallurgical results indicate recoveries of 93-95% Pb recoveries and 93-95% Ag recoveries to the lead concentrate and 75-85 % Zn recoveries in the zinc concentrate.

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Discovery history: First drilling in 1994 (Aranlee Resources). Apex Silver drilled the project in 2007 prior to dropping the project after they declared bankruptcy. Golden Arrow optioned the property in 2012.

Current drilling: 6 metres @ 189 g/t Ag, 1.5% Pb, 0.60% Zn starting at a depth of 164 metres; 107 metres @ 41 g/t Ag, 0.4% Pb, 1.1% Zn from 210 metres

 

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report

2. Trevali Mining Corp. is covered at Mackie Research Capital Corporation by analyst Peter Campbell

  • Within the last 3 years, Mackie Research Capital Corporation has managed or co-managed an offering of securities by the subject issuer.
  • Within the last 3 years, Mackie Research Capital Corporation has received compensation for investment banking and related services from the subject issuer.
  • In September 2014, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
  • In October 2013, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
  • In September 2012, an analyst from Mackie Research Capital Corporation visited Trevali’s New Brunswick assets. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Foran Mining Corp. is covered at Mackie Research by analyst Peter Campbell

  • • In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. 

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