Golden Arrow Resources has entered into an agreement to acquire up to 100% of the Indiana gold-copper project in Chile's Atacama Region.
Image: A gold mineral. Photo: courtesy of carlos aguilar/Freeimages.com.
Indiana is located approximately 35 kilometres from the Company’s new Atlantida copper-gold project. The Project features a near surface deposit of high-grade gold and copper vein-hosted mineralization, with an historic resource estimate.
The deposit area is permitted for mining, and there are currently two ramps allowing underground access for exploration and development.
Highlights of the Indiana Project include:
An historic Inferred mineral resource estimate of over 600,000 ounces of gold equivalent (“AuEq”) consisting of 3,093,700 tonnes averaging 2.8 g/t gold and 1.6% copper, at a 4 g/t AuEq cut-off, supported by a NI 43-101 Technical Report.
13,000 meters of diamond drilling completed in over 40 holes, 2000 chip and trench samples.
Metallurgical testing: Flotation tests indicate recoveries of 90% for gold and 92% for copper for sulphide mineralization.
Significant potential to increase the size and grade of the deposit: Access ramps into the deposit have allowed for more detailed exploration. Recent work returned channel samples averaging 1.6 metres width and 9 g/t AuEq, over 150 metres in ramp A, and an average of 1.5 metres width and 7.4 g/t AuEq, over 100 metres in ramp B, approximately 70 metres lower.
New mineralized vein splays have also been identified.
High potential for additional mineralization and new resources throughout the property.
Potential to fast track the Project to production, with existing mining permits and access drifts completed.
Easy access to water and energy, no environmental or community concerns
Golden Arrow Resources executive chairman, CEO & president Joseph Grosso said: “With the addition of the advanced-stage Indiana Project to the recently acquired Atlantida Project we solidify our presence in Chile, emphasizing our c ommitment to the rapid identification of new resources, and value growth for our shareholders.
“Indiana has the added benefit of two growth paths – a fast track to production thanks to the existing mining permit and historical resources, and exploration upside both within the known vein system and throughout the property.”
Golden Arrow has completed legal and technical due diligence on the Project. The Indiana Project represents a near term production target. The deposit area is permitted for mining and there are currently two completed ramps allowing access for exploration and development.
The Company is planning a program to complete a resource estimate at the Measured and Indicated level in the existing deposit area, as well as an economic assessment, and an aggressive program to delineate and drill test targets throughout the Project area to delineate other resources.
The Indiana Project will be managed under New Golden Explorations Inc., a 100% owned subsidiary of Golden Arrow. Both the Indiana and Atlantida Projects will be managed out of a new exploration camp proximal to both Projects.
About the Indiana Gold-Copper Project
Golden Arrow has executed a Definitive Agreement with Mineria Activa SpA, (“MSA”), a Chilean private equity investment management firm focused on exploration to production-stage assets in the Mining sector.
Terms for the Definitive Agreement are US$100,000 payment on signing, followed by US$15M in payments staged over 48 months. Prior to Golden Arrow making the last payment of $7M at the end year 4, MSA has the option of retaining 25% of the Project, which will then move forward on a pro rata basis.
The 2,300 hectare, road-accessible Indiana Project is located approximately 40 kilometres north of the city of Copiapó in the 3rd Region of Chile at 1470 metres above sea level.
Indiana is situated within an Iron-oxide-copper-gold (IOCG) belt that includes deposits such as Manto Verde, Candelaria and Cerro Negro Norte.
The property hosts historic mineral resources in a high-grade gold-copper vein system, with a permit for mining over the area of the historic resource. Golden Arrow believes there is excellent potential to expand the known deposit, as well to delineate additional mineralization regionally on the Project.
Work by previous operators of the Project includes 13,000 metres of diamond drilling in 40 holes, 2,000 chip and trench samples, and detailed geology and structural modeling. Eight major ~1 metre wide veins ranging up to 1.5 kilometres in length and down to 400 metres depth have been delineated.
In 2013, a mineral resource estimate was completed for MSA, including a supporting technical report following the guidelines of National Instrument (“NI”) 43-101 titled “Technical Report Indiana Gold and Copper Project Region III Chile”.
Source: Company Press Release