NEWS RELEASE - Feasibility and Moving Towards Production
Golden Arrow Defines a Three Year Development Plan for its Chinchillas Silver Project with Priority on Feasibility and Moving Towards Production
Vancouver, BC / TNW-Accesswire / August 18, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to provide an overview of management's streamlined plan to maximize values.
Management, with its long experience in the mining industry, rose to the challenge of dealing with the current down trend by implementing a strategy to lower operating budgets, narrow the Company's exploration activity and source out funding that was negligible to shareholder dilution.
In order for management to meet the challenge of sourcing funds, at minimal dilution to the treasury and as previously announced, the one percent royalty owned on Yamana's Gualcamayo mine was monetized to enable management to concentrate on a very narrow select exploration activity which produced the Chinchillas silver project discovery.
Management has strategized together with its technical team to implement a three stage development plan for the Chinchillas project which is detailed below.
Management's Staged Development Plan
Stage I:
The primary focus of the Company is to advance Chinchillas to a production stage. To do so, the following steps will be implemented over the next 16 months:
- The Company is currently incorporating the results of the recently completed 9,000 metre diamond drill program into the geological model to update the resource estimate.
- Following the completion of the new resource estimate, the financial models will be revised, and new NI 43-101 technical reports will be issued, including an updated Preliminary Economic Assessment (PEA). The green outline in Figure 1 below represents the main areas where the resource is expected to expand based on the recent drill program.
- Infill and associated drill programs will be completed to upgrade resources to measured and indicated, delineate resource boundaries, and define the general layout. The blue outline in Figure 1 below represents the areas in which these drill programs are likely to occur.
- The geological model and resource estimate will be further updated to incorporate the drilling described above and prepare the project for a Feasibility Study, which is envisioned to take approximately 12 months.
- Based on a positive Feasibility Study and financing, the Company then plans to move to detailed engineering, permitting and mine construction.
The following map can also be found on the Golden Arrow website at
https://www.goldenarrowresources.com/i/maps/slide1-Figure-1-Stage-1-Dev-Chinchillas.jpg.
Figure 1. Stage 1 Development of Chinchillas Silver Project
Stage II:
The project has many areas that are prospective for discovery, in particular in the Chinchillas South area, where seven holes completed during the recent Phase 3 drilling program intersected wide zones of silver-zinc mineralization. Based on these results, the Company reported on July 22, 2014 that the Chinchillas South area has a target potential of between 100 and 160 million tonnes at grades ranging from 32 to 40 grams per tonne silver equivalent with the potential to add 100 to 200 million ounces of silver equivalent to the project in the future. Therefore Stage II will include:
- More detailed drilling of the Chinchillas South target area (shown outlined in yellow in Figure 2 below) in order to develop additional resources for the project.
The following map can also be found on the Golden Arrow website at
https://www.goldenarrowresources.com/i/maps/slide2-Figure-2-Stage-2-Dev-Chinchillas.jpg.
Figure 2. Stage 2 Development of Chinchillas Silver Project
Stage III:
- Further resource expansion and blue sky potential is shown in blue and covers more than 70% of the property surrounding Chinchillas. This area is prospective and underexplored and has the potential of further adding to the resources at Chinchillas.
The following image map can also be found on the Golden Arrow website at
https://www.goldenarrowresources.com/i/maps/slide3-Figure-3-Stage-3-Dev-Chinchilllas.jpg.
Figure 3. Stage 3 Development of Chinchillas Silver Project