Next Phase Of Drilling In Pre-Development Program At Chinchillas Silver Project

VANCOUVER, BC - Golden Arrow Resources Corporation has commenced a 6,500 meter Phase VI drilling and exploration program at the Chinchillas silver project in Jujuy Province, Argentina. The drill program will focus on exploration and condemnation drill holes, as well as infill holes as necessary.

The previous Phase V, 15,000 meter, drill program was successful in converting a significant portion of the resources within the high grade Silver Mantos area to the measured and indicated categories required for pre feasibility or feasibility level engineering. The Phase V and VI drill programs are part of the Chinchillas Project pre-development activities, funded by Silver Standard Resources Inc., 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.

Paul Benson, President and CEO of Silver Standard commented in The Northern Miner, dated May 18th, 2016, "So far the studies demonstrate that Chinchillas would make quite a simple open pit that could carry the life of Pirquitas into the next decade."

Prior to commencing the Phase IV drill program, the team completed mapping and trenching of several prospective areas to define the drill targets. Drilling has started in the Chinchillas South target area, which extends from the main Chinchillas deposit approximately 1.5 kilometers to the south. The area has been previously tested by only eight drill holes in the Phase III and Phase V drill campaigns. Results included multiple intercepts of silver, lead and zinc in most holes, such as: 69 g/t silver, 1.1% lead and 1.9% zinc over 15 meters in CGA-272W, including 165 g/t silver, 2.0% lead and 3.6% zinc over 3 meters; and 15 meters averaging 181 g/t silver, 1.1% lead in CGA-113. 

Brian McEwen, Vice President, Exploration and Development, commented, "Results to date indicate that we could be looking at a much bigger mineralizing system than we originally envisioned. This next phase of drilling along with recently completed exploration program will test the true potential outside of the main Chinchillas area."