The agreement gives Hanaq the opportunity to earn a 70% interest in Caballos by spending US$4 million on exploration at the Project over six years
Golden Arrow boosts copper strategy, options its Caballos Copper-Gold Project, Argentina. (Credit: Khusen Rustamov from Pixabay)
Golden Arrow Resources Corporation is pleased to announce that it has entered into a Definitive Agreement (the “Agreement”) to option its Caballos Copper-Gold Project (“Caballos” or the “Project”) to Hanaq Argentina S.A. (“Hanaq”). Hanaq is a mineral exploration company with precious, base and strategic metal projects throughout Argentina. The agreement gives Hanaq the opportunity to earn a 70% interest in Caballos by spending US$4 million on exploration at the Project over six years.
“Caballos is one of several copper-focused projects within our more than 180,000-hectare portfolio in Argentina that has demonstrated potential from preliminary geological work. With the recent strength in the copper market, we have redoubled our efforts to secure qualified and committed partners such as Hanaq to advance these exploration projects. This allows us to build value at those properties while freeing our team to concentrate on our core-focus precious metal projects in Argentina and Paraguay and on copper assets that we believe we can advance faster and more efficiently, such as our Rosales copper project in Chile,” commented Joseph Grosso, Golden Arrow’s Executive Chairman, President and CEO.
Golden Arrow Key Copper Projects
Rosales – The Company’s 100% held Rosales copper project is located less than 90 kilometres from the mining centre of Copiapo in Region III, Chile. The region is prolific for mining, with multiple copper and gold mining projects nearby, including the Margarita Mine, an underground copper mining operation adjacent to the Rosales properties. [Golden Arrow cautions that proximity to a producing mine does not indicate that mineralization will occur in sufficient quantity or grade on Golden Arrow’s property that would result in an economic extraction scenario.] Golden Arrow’s first phase exploration program is underway at Rosales, and a new detailed geophysical survey is being commissioned to map structures related to mineralization and aid in the delineation of drill targets.
In addition to the Caballos project, Golden Arrow has an Argentina copper portfolio that includes multiple projects in geologic districts that host world-class copper and gold deposits. Highlights of the portfolio include:
Mogote – Mogote is adjacent to the Filo del Sol gold project property owned by Filo Mining and has seen limited drilling on its multiple porphyry and epithermal targets.
Don Bosco – Don Bosco has several copper, gold and silver targets, and is in the same sedimentary belt as the Gualcamayo gold mine owned by Mineros S.A.
The Mogote and Don Bosco projects, and others, are available for joint venture.
About the Caballos Copper-Gold Project, San Juan Province, Argentina
The Caballos Copper-Gold Project covers over 12,000 hectares along the Chilean border in the Andean Cordillera of La Rioja Province, Argentina. The property is in a prospective porphyry copper-gold and epithermal gold-silver district at the intersection between the south end of the Maricunga Copper-Gold Belt with the northern extent of the El Indio Gold-Silver Belt. Elevations at Caballos range from 4,000m to 4,500m above sea level. A paved highway and good gravel roads allow ready access to the eastern part of the property and work can be conducted for 7 to 8 months of the year. The nearest small community is 100km away.
An initial multi-discipline exploration program led to the discovery of a copper-gold porphyry target, including a magnetic core, measuring 300m x 800m. Outcrop sampling on the margin of the magnetic core zone encountered 12 metres averaging 2.4% copper within an 18 metre continuous chip sample. The coincidence of magnetic high, chargeability high, elevated gold and copper geochemistry and classic porphyry alteration combines to present a compelling copper gold porphyry drill target. (For additional details on the project and exploration results, please refer to the original news releases filed on SEDAR.)
Caballos Option Agreement Details
The Agreement was executed by Golden Arrow’s wholly-owned subsidiary, Desarrollo de Recursos S.A. (“DDR”). In order to earn a 70% interest in the Project, Hanaq has guaranteed a minimum US$0.5 million in expenditures on exploration within two years, followed by US$3.5 million in exploration expenditures within six years of the Agreement date. After completion of the option earn-in, a joint venture company comprised of 70% Hanaq and 30% DDR will advance the Project on a pro rata basis, with provisions for dilution.
Source: Company Press Release