Jun. 6, 2010 (TheNewswire.ca) --
Golden Arrow Resources Corporation (GRG - TSX.V)("Golden Arrow" or the "Company") is pleased to report analytical results from its recently-completed prospecting and geochemical sampling program on its 100% owned 4,000ha Potrerillos Project located in the Frontera District just 8km east of Barrick Gold Corporation's (NYSE:ABX) (TSX:ABX) Veladero gold-silver mine (12.2 Moz gold equivalent reserves*) in San Juan Province, Argentina. A total of 103 rock chip samples were collected at the Panorama Zone in the central portion of the property. Individual assays ranged up to 8.4 g/t gold, 1,000 g/t silver and 6.2 % copper (see Table 1 below). Results to date suggest the Panorama Zone may represent the upper level of a Veladero-type mineralized system.
Golden Arrow is now planning an intensive exploration program for Potrerillos to comprehensively evaluate the large target area with geological mapping, expanded geochemical sampling, extensive mechanized trenching, and ground geophysical surveys to delineate targets for drill-testing. Work will commence when the Andean exploration season begins in the fall.
Golden Arrow controls 100% of 7 properties totaling 12,488ha in the Frontera District of northwestern San Juan province which is one of the most prolific gold-silver mining camps in South America and lies at the northern end of the El Indio metallogenic belt. This district contains Barrick Gold Corporation's world class Pascua Lama Project, which is currently under development and contains 17.8 Moz Proven and Probable Gold Reserves, with 671 Moz Silver contained within the gold reserve*, and their Veladero Mine with Proven and Probable reserves of 12.2 million ounces of gold equivalent*. Golden Arrow's Potrerillos and Rio de los Taguas properties are both located within 8km of the Pascua Lama and Veladero gold-silver deposits (see Figure 1: http://www.goldenarrowresources.com/i/maps/Potrerillos-Tenure-area.jpg ).
The 4,000ha Potrerillos Project is 100% owned by Golden Arrow and is located just 8km east of the Veladero gold-silver mine. Access is excellent due to the all-season Veladero mine road which passes immediately to the south of the project. Three main exploration targets have previously been identified on the property: Panorama, Fabiana and Narrelle during exploration campaigns in 1999-2001 by the Company. Most previous work on the project was focused on the Fabiana and
Narelle zones, respectively located on the western and eastern areas of the property. The current work program targeted the Panorama Zone where previous very limited sampling had identified high-grade gold-silver mineralization on surface of up to 15.4 g/t gold and 2900 g/t silver.
During two recent field campaigns 103 rock chips were collected, of which 14 had values over 1 g/t gold, or 100g/t silver or 1% copper. Grades ranged up to 8.4 g/t gold, 1000 g/t silver and 6.2 % copper (see Figures 2: http://www.goldenarrowresources.com/i/maps/Potrerillos-Target-areas-Ag-ppm.jpg; and 3: http://www.goldenarrowresources.com/i/maps/Potrerillos-Target-areas-Au-ppm.jpg ). Mineralization is associated with elevated As-Ba-Mn-Mo-Pb-Zn. Sampling highlights are presented in Table 1 below.
Table 1: Potrerillos Sampling highlights - April 2010 Program
Sample # Sample Description Au (ppm) Ag (ppm) Cu (%) Mo (ppm) GA 12178 breccia 1m chip 0.21 201.0 0.00 0 GA 20706 qtz vein 1m 0.91 431.0 0.00 62 GA 20709 banded vein 1m 2.54 172.3 0.00 36 GA 20717 Massive qtz/Barite breccia float 1.45 146.6 0.00 2 GA 20718 Massive qtz/Barite breccia float 1.16 119.2 0.00 1 GA 20779 Stockwork qtz, barite, sulphides 1.90 169.0 0.02 1 GA 20790 Stockwork qtz, barite, sulphides 2.39 266.0 0.01 1 GA 20794 stockwork barite veinlets <0.01 24.7 2.09 2 GA 20795 native Cu, veinlets qtz / calcite <0.01 16.6 6.19 1 GA 20803 breccia 2 m chip 1.33 456.0 0.00 200 GA 20804 breccia 3 m chip 0.79 148.1 0.00 345 GA 20821 Stockwork qtz, ba, sulphides 8.42 1,000.0 0.01 1 GA 20823 Stockwork qtz, ba, sulphides 0.25 134.6 0.00 1 GA 20824 Stockwork qtz, sulphides 1.12 117.3 0.00 6
Note 1 ppm = 1 gram/tonne
The above high-grade samples and widely dispersed anomalous values occur in a north-south trending area 3,000m long by 600m wide, called the Panorama Zone because Panorama Ridge is an excellent vantage point to look directly over the Veladero Mine and Pascua Lama deposit just a few kilometers to the west.
Golden Arrow geologists interpret the Panorama Zone as the upper expression of a high sulphidation epithermal precious-base metal mineralized system. The Panorama Zone area has very limited outcrop due to extensive cover by talus deposits. Where exposed the host volcanic rocks are generally variably stockwork veined with quartz, calcite and barite veins ranging in size from centimeters up to 3m width. Sampling also identified gold-silver mineralized breccia targets, and sub-horizontal layers of silica barite breccia up to several meters thick, also associated with significant gold-silver mineralization.
The Company followed industry standard procedures for the work carried out on the Potrerillos Project. Blank, duplicate, and standard samples were inserted into the sample sequence sent to the lab for quality assurance/quality control (QA/QC) purposes. In total, 5 quality control samples (4.8% of all 103 samples) were analyzed. Golden Arrow detected no significant QA/QC issues during review of the data.
Analyses of the samples were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. The technical information contained in this release has been prepared by Bruce Smith, AUSIMM, Golden Arrows Exploration Manager and a Qualified Person, and has been reviewed by Dr. David A. Terry, P.Geo., director and Vice President Exploration for Golden Arrow, and a Qualified Person as defined in National Instrument 43-101.
About Golden Arrow:
Golden Arrow is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold (NYSE:AUY) (OOTC:AUYWF) (TSX:YRI) Corp.'s Gualcamayo Gold mine in San Juan Argentina, which has paid the Company US$ 1,564,277 over the past 14 months, an attractive portfolio of highly prospective exploration projects, a pipeline of acquisition opportunities under review and only 35.7 million shares issued and outstanding.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & C.E.O.
*from Barrick Gold Corporation 2009 Annual Report
For further information please contact Joseph Grosso, President & CEO, or Investor Relations at 1-800-901-0058, or 604-687-1828 ext.248, or fax 604-687-1858.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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