Golden Arrow Resources Corp V.GRG

NEWS RELEASE - New Exploration Area at Chinchillas Project

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Thursday, May 29, 2014
Golden Arrow's Phase III Drill Program Opens New Exploration Area at Chinchillas Project, Argentina

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Vancouver, BC / TNW-Accesswire / May 29 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that five exploration drill holes at the Chinchillas Silver Project in Jujuy province, Argentina have encountered significant mineralization over a previously untested wide-spread area up to 1.5 kilometres away from the existing resource.

"To have all five holes hit significant mineralization, spanning over forty hectares of this previously undrilled zone on Chinchillas, is very exciting," commented Golden Arrow VP Exploration and Development Brian McEwen. "This area represents two-thirds of our land holdings at the project and it remains under-explored, so we are eager to follow up with more drilling to outline new resource targets here."

"We are pleased to see increased zinc in these recent exploration holes, as it provides the potential to enhance the value at Chinchillas," stated Mr. McEwen. "Zinc is an important credit in other deposits in the Bolivian silver belt, such as San Cristobal mine, which is one of the world's largest silver producers and states reserves of over 280 million tonnes grading 1.41% zinc, 53.0 g/t silver and 0.48% Pb."

The five holes drilled represent targets located between 300 metres and up to 1.5 kilometres away from the existing resource zones. Four of the five holes are mineralized starting near surface (~50 metres depth) and down the length of the hole, and remain open at depth. Mineralization includes silver, lead and zinc, with zinc predominant in most holes.

Highlights of the results include:

• CGA-110: 17 metres averaging 0.5% lead and 3.4% zinc (126 g/t AgEq) at 218 metres depth
• CGA-113: Returned forty-one intercepts over 381 metres, including:
  • 15 metres averaging 181 g/t silver, 1.1% lead (216 g/t AgEq) at 308 metres depth
  • Including 1 metre grading 2031 g/t silver, 9.5% lead
• CGA-114: 45 metres averaging 0.8% zinc at 91 metres depth in CGA-114, including several higher grade intercepts such as:
  • 3 metres averaging 70g/t silver, 1.1% lead and 1.5% zinc (154 g/t AgEq)

The Phase III drill program is designed to both increase the existing resources at the Chinchillas deposit and explore new areas of the properties. The program initially included a minimum of 6000 metres of diamond drilling, and this has been twice increased for a new total of up to 9000 metres, based on the positive results to date. Over 7500 metres has now been drilled, and holes represented in Table 1 below include 1640 metres of the completed drilling.

Corebox® interactive 3-D models of the deposit and drill holes can also be found on the website, here and will be updated with these new intercepts. A map of the drill hole locations will also be posted to the Chinchillas map page on the Golden Arrow website.

Drilling Details

In July 2013 Golden Arrow announced the successful acquisition and drill permitting of its second concession at the Chinchillas project, "Chinchilla I". (See News Release dated July 24, 2013.) This property is contiguous with the original concession ("Chinchilla") and more than twice the size. The 2013 exploration field program included surface mapping, sampling and magnetics, CSAMT and IP / Resistivity geophysics on part of the property that is situated to the south of Chinchilla. The program identified several new drill targets that are part of the Phase III program.

South Dome Targets

The southern edge of the basin hosting the Chinchillas deposit is ringed by series of outcropping dacite domes, situated approximately on the boundary of the Chinchilla-Chinchilla I properties. The 2013 field program identified several targets in and around these in an area being called "South Dome". (See map for location.)

Hole CGA-110 is located on the Chinchilla property, just north of the boundary with Chinchilla I. It was drilled to the northwest towards the Socavon del Diablo zone and it was expected to drill into one of the dacite domes and through sub-outcropping brecciated tuffs where the surface sampling had returned up to 288 g/t silver. However, the hole remained in basement material nearly the entire length, and encountered a thick intersection of high zinc and lead towards the bottom. This mineralization could be continuous with deep intersections in the Socavon zone, however additional drilling will be required to confirm this.

Holes CGA-113 and 114 are situated approximately 770 and 600 metres west-southwest of CGA-110, respectively. These holes tested a large area where surface mapping identified brecciated basement-style material starting at surface. CGA-113 was mineralized in short intervals throughout the hole, with galena, sphalerite and siderite returning 41 intercepts over 381 metres. CGA-114 was a shorter hole but also encountered silver, lead and zinc throughout brecciated basement pelites. Zinc was pervasive, including through a 45 metre interval averaging 0.8%. This interval contained several other shorter sections with significant silver and lead.

Based on the success of these three holes, the Phase III program will include two additional holes in the South Dome area.

Pascua Area Targets

The furthest southern targets on the Chinchillas project have been grouped into the Pascua area, and were delineated based on large geophysical anomalies with no detectable surface expression. CGA-111 is collared more than a kilometre south of the Socavon del Diablo resource zone, and CGA-112 is a further 400 metres south. Similar to -113 and -- 114, both holes were mineralized throughout the brecciated basement rocks, including proliferate microveinlets of sphalerite, galena and siderite.

Based on the success of these holes, the Phase III program will include an additional two holes in this area.

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

TARGET	HOLE ID	NOTES	FROM (metres)	TO (metres)	Interval (metres)	Ag (g/t)	Pb (%)	Zn (%)	Ag Eq. (g/t)
SOUTH DOME	CGA-110		163	164	1.0			0.7	23
			167	168	1.0			0.8	26
			218	235	17.0		0.5	3.4	126
PASCUA	CGA-111		54	62	8.0			0.5	16
			82	89	7.0		0.6	0.5	35
			98	100	2.0			1.1	35
			131	138	7.0		0.6	0.6	39
			151	155	4.0			0.5	16
			186	191	5.0			0.7	23
			192	195	3.0				16
			204	207	3.0		1.0	0.8	57
			215	224	9.0			0.7	23
			227	228	1.0			1	32
			243	244	1.0	20	0.5	0.8	62
			244	249	5.0			0.7	23
			250	252	2.0	38	0.9	0.6	86
			265	270	5.0	21	0.4		34
			274	275	1.0	20			20
			277	278	1.0	20	0.5	0.8	62
			283	287	4.0	36	0.8	0.9	91
			299	302	3.0	28	0.7	0.7	73
			304	305	1.0	117	3.1	2.5	297
			308	312	4.0	51	1.5	1.8	157
			314	320	6.0	20	0.4	0.5	49
			325	328	3.0	80	1.6	0.8	157
			341	344	3.0	47			47
			353	354	1.0	41			41
PASCUA	CGA-112		52	59	7.0	50	0.7	1.5	121
			60	61	1.0	27		1.5	75
			62	67	5.0	33			33
			77	79	2.0	53	0.8	1.3	121
			88	94	6.0			0.6	19
			99	100	1.0	58			58
			104	105	1.0			0.9	29
			134	135	1.0	32	0.7		55
			287	288	1.0			2.0	64
			293	295	2.0	34	0.8		60
			299	300	1.0	28	0.6	0.9	76
			305	309	4.0			0.5	16
			315	318	3.0			1.2	39
SOUTH DOME	CGA-113		37	38	1.0			0.9	29
			45	46	1.0			1.2	39
			51	52	1.0	27	0.9		56
			56	57	1.0			0.8	26
			61	62	1.0			0.5	16
			72	73	1.0	20		0.8	46
			86	88	2.0	27			27
			91	92	1.0	50			50
			108	109	1.0			0.7	23
			112	114	2.0	22			22
			123	124	1.0			0.5	16
			128	129	1.0	20	0.6	1.0	72
			131	132	1.0		0.7		23
			138	145	7.0			0.5	16
			153	154	1.0	21	0.6	0.6	60
			162	166	4.0	27	1.0	1.1	95
			166	167	1.0			1.7	55
			170	171	1.0	49	1.4	1.1	130
			171	179	8.0			0.5	16
			185	188	3.0			0.8	26
			188	189	1.0	25	0.5	2.4	118
			193	206	13.0			0.5	16
			210	214	4.0	26			26
			214	217	3.0			0.9	29
			220	231	11.0	31			31
			235	237	2.0	31			31
			239	244	5.0	35			35
			247	252	5.0	22			22
			255	257	2.0			0.6	19
			260	261	1.0	23			23
			263	264	1.0			0.5	16
			266	269	3.0			0.9	29
			269	271	2.0	62		0.7	85
			274	276	2.0	144		0.5	160
			300	301	1.0			1.7	55
			308	323	15.0	181	1.1		216
		includes	313	314	1.0	2031	9.5		2,337
			326	330	4.0	131	1.7		186
			342	344	2.0			0.6	19
			348	349	1.0	23			23
			355	357	2.0	24		0.5	40
			360	363	3.0	106	1.9		167
SOUTH DOME	CGA-114		36	38	2.0			0.8	26
			91	136	45.0			0.8	26
		includes	106	109	3.0	70	1.1	1.5	154
		And	111	113	2.0	43	0.7	2.2	136
		And	117	120	3.0	32			32
		And	128	132	4.0	20	0.8	1.7	101
			137	138	1.0	31			31
			141	146	5.0	46	0.5		62
			156	157	1.0	68	0.6	1.2	126
			221	222	1.0	47			47
The reported intervals are believed to approximate true width and will be confirmed with geologic modeling. Silver Equivalent grades (AgEQ) were calculated using US$20/oz. for silver, US$0.94/lb. for lead and US$0.94/lb. for zinc.

Methodology and QA/QC

Analyses of the drill core were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. All samples were analyzed by method ICP-MA-39 that consists of a four acid digestion followed by ICP-OES detection. Silver results >200 Ag g/t were re-analyzed by fire assay with a gravimetric finish on 50-gram samples. Lead and zinc results >10,000 ppm were re-analyzed by a 3 acids and ICP-OES detection. The Company followed industry standard procedures for the work carried out on the Chinchillas Project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the drill core sample sequence sent to the laboratory for analysis. Golden Arrow detected no significant QA/QC issues during review of the data.

Table 2. Drill hole location and orientation data

Hole ID		Easting		Northing		Elevation		Azimuth		Inclination		Length
CGA-110		3473790		7511799		4114		300		-55		302.00
CGA-111		3473553		7511210		4168		0		-90		358.00
CGA-112		3473370		7510854		4216		150		-60		351.00
CGA-113		3473042		7511607		4240		210		-55		381.00
CGA-114		3473200		7511642		4208		0		-60		247.00

About the Chinchillas Silver Project

Golden Arrow is earning a 100% interest in the Chinchillas Silver Project. After less than two years exploration, the Company announced a NI 43-101 resource estimate1 in 2013, including:

• 27.4 Moz silver / 32.6 Moz silver equivalent in Indicated Resources
  (7.2 Mt @ 119g/t silver, 0.57% lead, 0.48% zinc : 141g/t silver equivalent )
• 53 Moz silver / 72.2 Moz silver equivalent in Inferred Resources
  (21 Mt @ 78.5 g/t silver, 0.69% lead, 0.62% zinc : 107g/t silver equivalent)

The first NI 43-101 preliminary economic assessment2 returned an after-tax NPV 8% of US$98.5M, highlighting the benefits of the project's near-surface mineralization, conventional metallurgy and access to infrastructure. The deposit is open to expansion and Golden Arrow is now drilling to increase resources.

1 "Mineral Resource Estimate for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated June 20th, 2013.
2 "Preliminary Economic Assessment for the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" filed on SEDAR dated January 20th, 2014.

Qualified Persons

The contents of the news release have been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development to the Company, and a Qualified Person as defined in National Instrument 43-101.