Golden Arrow To Acquire the Atlantida Copper-Gold Project

 

VANCOUVER, BC - Golden Arrow Resources Corporation has signed Definitive Agreements to acquire the 3,450 hectare Atlantida Copper-Gold Project in Chile’s 3rd Region.  Atlantida is an advanced project which combines mineral rights from two separate owners and includes an extensively drilled copper-gold deposit with a historic resource estimate. By consolidating the land package, Golden Arrow believes there is potential to identify new mineralization and define a significant copper-gold resource.

Previous exploration at Atlantida resulted in a historic resource estimate of 427 million tonnes averaging 0.43% copper equivalent. The resource includes a deep porphyry copper-gold target and a near-surface skarn with higher gold grades which together cover an area of approximately 225 hectares.  Situated within the consolidated Atlantida property, this skarn zone is located on the western edge of the claim hosting the historic resource, and extends onto an adjacent claim (now under option by Golden Arrow) that has historic workings but has had limited modern exploration.  Golden Arrow’s due diligence surface rock samples in this area returned up to 3.7 g/t gold and 1.98% copper, providing an excellent target for new mineral resources. In addition, based on the preliminary due diligence review, Golden Arrow believes the Project is prospective for discovery of similar targets elsewhere within the consolidated Atlantida properties. 

The Atlantida Project includes two separate land packages that Golden Arrow has consolidated into a single project through the signing of two Definitive Agreements.  The first agreement includes a 48 month earn-in with minimal costs in the first year and total payments of US$4 million.  There is a 2% Net Smelter Royalty (“NSR”) payable with half available for repurchase under certain terms.  The second agreement includes a 24 month earn-in period for a total of US$2 million and a 1% NSR that can be repurchased in full under certain terms.

The total land area of the consolidated Project is approximately 3,450 hectares. The Project is road-accessible and is located 60 kilometers northeast of Copiapo at an altitude of 1700 metres above sea level. There is an abundance of both outcrop and old workings.

The Atlantida Project is situated within a metallogenic belt limited by the Atacama Fault System to the west and the Domeyko Fault System to the east. Within the project area, a copper-gold deposit covering a 1.5 kilometer by 1.5 kilometer (225 hectares) area has been identified.  Mineralization is hosted by porphyries intruded into limestone host rocks, as well as in the skarn at the porphyry-limestone contact. These intrusives are very close in age to others in the region that host major copper porphyry deposits, such as Relincho, Lomas Bayas, Sierra Gorda and Spence, and epithermal gold vein deposits such as Guanaco and El Penon.  

Previous operators include Inmet Mining Corporation and First Quantum Minerals Ltd. and over 29,000 metres of drilling, as well as surface sampling and geophysical work has been carried out in the deposit area.  According to the preliminary information received by Golden Arrow, Inmet Mining completed a mineral resource estimate for the Atlantida deposit in 2012.

As it was completed by a major company, it is believed likely that the methodology used was reliable, however, the key assumptions and parameters used in the estimate are unknown to the Company at this time.  Following a review of the information acquired, Golden Arrow will determine if it will immediately pursue the completion of a current mineral resource estimate by an independent Qualified Person, using CIM best practices and following the guidelines of NI 43-101, or first proceed with additional exploration.

The company’s address is Suite 312, 837 West Hastings Street, Vancouver, BC V6C 3N6, 604.687.1828, fax: 604.687.1858, email: [email protected].