Golden Arrow Reports Final Chinchillas Phase VI Drill Results & Expands Mineralization to the East

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 3, 2016) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(OTCQB:GARWF)(WKN:A0B6XQ) ("Golden Arrow") is pleased to announce the results of assaying of the final twelve drill holes in the Phase VI drilling program at its Chinchillas Silver Project in Jujuy Province, Argentina.

The drilling program is part of the Chinchillas Project pre-development activities, funded by Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI) ("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 objective of the drill program is exploration for resource potential as well as condemnation of certain areas for potential future mine infrastructure. Drill targets included the Chinchillas South area where seven previous drill holes had returned significant zinc and silver intervals up to 1.5 kilometres away from the main Chinchillas deposit.

"We are pleased with the results of the Phase six program, which met all of its objectives. It is particularly gratifying to see that even as we work to complete pre-feasibility studies for the development of the main deposit, we have already delineated three areas with the potential to add resources to the project in the future," commented Brian McEwen, Golden Arrow's VP Exploration and Development.

Selected highlights from these drill holes include:

  • 118 g/t silver and 1.2% lead and 1.1% zinc over 10 metres in CGA-323
  • 146 g/t silver and 4.0% lead and 2.4% zinc over 3 metres in CGA-324
  • 115 g/t silver and 3.1% lead and 3.5% zinc over 3 metres in CGA-326
  • 167 g/t silver and 2.0 % Pb and 1.5% Zn over 18 metres in CGA-327, including
    • 313 g/t silver and 2.6 % Pb and 1.2 % Zn over 6 metres

The drilling of Phase VI holes is now complete, with a total of 7,188 metres over 34 holes including seven short reverse circulation holes and one hole redrilled for a water well.

Table 1 below includes the assay results from 12 drill holes totaling 1,895 metres in length. A map of the drill hole locations is available on the Chinchillas map page on the Golden Arrow website at:

Chinchillas Geology

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 Chinchillas South target area is located immediately south of the Chinchillas deposit, in an area approximately 1.2 kilometres wide by 1.2 kilometres long defined by a structural system with a series of hydrothermal breccias, veinlets and stockworking in a wide altered zone. The Chinchillas deposit and zones are described in detail in the current NI 43-101 Technical Report, filed under Golden Arrow's SEDAR profile dated May 27th, 2016.

Drill Hole Details

The Phase VI drilling was completed on August 14, 2016. As was announced on May 25, 2016 the focus of the program was on exploration and condemnation of areas for infrastructure. Holes reported in this News Release include one remaining hole from the Chinchillas South target described in the last News Release (dated April 7th, 2016) as well as eight holes in the new Jesuita target and three holes in the Socavon del Diablo mineralized zone described in the current Technical Report.

  • Chinchillas South: New interpretation of this target was described on Press Release dated September 7th, 2016, together with the results of drill holes during this Phase VI. Hole CGA-322, reported here, is part of this previous group of drill holes. It intercepted low grade mineralization just west of the north-south corridor previously reported.
  • Socavon del Diablo: In order to test high grade breccia structures, three 60-metre deep holes, CGA-324, CGA-325 and CGA-326, were drilled in the west edge of the Socavon del Diablo zone. Two of them (CGA-324 and CGA-326) intercepted high grade-near surface silver-lead-zinc mineralization.
  • Jesuita target. This target is located 400 metres southeast of the Socavon del Diablo zone. It was recently defined based on detailed mapping and surface sampling. At surface it corresponds to an outcropping block of brecciated basement unit, of approximately 50 by 80 metres. The block appears to have been rotated, based on abrupt changes in the bedding of the sediments. Original rock chip samples showed values of up to 36 g/t silver, and recent channel sampling confirmed anomalous values with up to 38 g/t silver in a 2.1 metre interval. Based on the intense brecciation of the zone plus anomalous values in silver, lead, zinc and antimony, two short Reverse Circulation holes of 48 metres each were drilled in the northwest edge of the body: CGA-303RC and CGA-304RC. The second hole intercepted anomalous values (See Table 1). Under the expectation of an increase in mineralization at depth, six diamond holes (CGA-319, CGA-323, CGA-327, CGA-328, CGA-329 and CGA-330) were then drilled in the area at different depths. Table 1 shows the intercepts. High grade silver mineralization is associated with brecciation and open spaces within an envelope of low grade zinc mineralization in fractured basement rocks. The correlation between the mineralized intervals in the holes is not obvious but it may be attributed to subvertical structures as feeders with an azimuth of 120° as seen at surface. These drill holes expand the Jesuita target to the north into the Socavon Basement zone, possibly connecting to some previous high grade holes such as CGA-170 with 30 metres with 176 g/t silver, 1.5 % lead and 0.8% zinc (reported in News Release dated June 25th, 2015).

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

TARGET HOLE Note From (metres) To
Length (metres) Ag (g/t) Pb (%) Zn (%)
Jesuita CGA-303RC no significant mineralization
Jesuita CGA-304RC 18 28 10 27 0.7 1.2
including 24 28 4 23 1.2 3.0
28 34 6 0.6
Jesuita CGA-319 135 147 12 0.9
147 150 3 35 1.1 3.9
150 152 2 247 4.5 1.4
152 154 2 21 0.7
154 155 1 202 4.9 1.8
155 157 2 53 0.5 0.6
157 166 9 0.7
172 173 1 396 15.2 2.0
173 183 10 26 0.7 0.5
190 191 1 115
South Chinchillas CGA-322 67 71 4 0.5 1.2
91 101 10 0.8
321 330 9 37

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