Located in central Rio Negro province, the Flecha de Oro Project includes the Puzzle and La Esperanza exploration properties
Vancouver-based mining exploration firm Golden Arrow Resources has signed an agreement to acquire up to 100% of the Flecha de Oro gold project in Argentina.
Located in central Rio Negro province, the project lies within the Somuncara Massif, where low and high sulphidation gold systems have been explored for since the first discovery of gold in the area in 1995.
The Flecha de Oro Project comprises of 1,952ha of Puzzle exploration property and 9,968ha of La Esperanza exploration property, which are road-accessible at an elevation of nearly 950metres above sea level. The properties allow for year-round exploration.
Golden Arrow President and CEO Joseph Grosso said: “Flecha de Oro is an excellent complement to our portfolio of active gold projects in Chile and Paraguay, and it continues our work in Argentina, where the Grosso Group has been successfully exploring for over 25 years.
“Rio Negro is a very good jurisdiction where another Grosso Group company, Blue Sky Uranium Corp., has succeeded in making discoveries.
“We look forward to similar achievements at this project.”
Flecha de Oro Project includes approximately 120km2 of mineral rights
As per the terms of the agreement, Golden Arrow will make staged payments to the seller for a combined amount of $2,093,000 (£1,697,852) for more than 7 years to receive a 100% interest in Puzzle and La Esperanza exploration properties.
Having already paid $13,000 (£10,546) till date, the mining exploration company needs to pay $93,000 (75,442) in the first 2 years
The undisclosed seller will retain a 1% royalty, which can be reduced to 0.25% for an additional $1,000,000 (£811,205).
The Flecha de Oro Project includes approximately 120km2 of mineral rights in an area of known high and low-sulphidation epithermal gold mineralisation.
Ground Magnetic surveying on the project delineated a mineralised vein corridor coincident with a magnetic low, which demonstrates the application of the technique for exploring extensive property areas under cover.
Recently, Golden Arrow Resources completed the sale of its 25% interest in Puna Operations to SSR Mining.