Golden Arrow Resources Corporation (TSXV: GRG, OTCQB: GARWF) has, through its wholly owned subsidiary New Golden Explorations Chile SPA, purchased a 100% interest in the San Pietro Iron-Oxide Copper Gold (IOCG) Project in Chile from Sumitomo Metal Mining Chile Ltda (SMM Chile) for cash consideration of US$3.35 million.
“With this acquisition Golden Arrow has secured full control of a project that exhibits an excellent value proposition, with near-term resource potential and multiple areas with exploration upside,” Executive Chairman, President and CEO, Joseph Grosso, said.
“We accomplished this acquisition by taking advantage of the strong financial position that resulted from our last successful transaction. In fact, using the leverage from Golden Arrows’ SSR Mining Inc. shareholding from November when our proposal was accepted to closing, saw an increase of approximately $7.00/ share from $19.00 to $26.00 which completely covered the purchase cost of the project, leaving us still with a strong cash position.
“Now our technical team will try to do as they did with our Chinchillas Project in Argentina and advance a strategically located exploration project to pre-feasibility”, commented
Golden Arrow’s Vice President, Exploration and Development, Brian McEwen, said there is an incredible opportunity for Golden Arrow and its investors.
“There has been little, or no work done on the Project since 2014. Since that time the prices of copper, gold, iron and especially cobalt have all increased greatly. Previous evaluations were based largely on copper only.
“Our initial review indicates each of these could play an important role in the overall potential economics. We also identified several targets within the 18,000 hectares which will be the focus of our initial exploration.”
The San Pietro Project has had nearly US$15 million in exploration work by previous owners, including over 34,000 metres of drilling, over 1,000 surface samples and multiple geophysical surveys.
Of the Project’s five main target areas, the Rincones target has been the primary focus of the historic work, with multiple drill holes returning assays with significant copper, gold and cobalt values, including: 28 metres averaging 1.14% Cu, 0.12g/t Au, and 335ppm Co, in RA-12-DH-003.
Golden Arrow’s due diligence review confirmed the considerable potential of the known targets and identified areas where new interpretations and additional work are expected to improve the prospects.
The 2022 work programme will work toward resource delineation at Rincones, while continuing to evaluate and advance the four additional known targets and other areas of the property.
Project Description
The San Pietro Project includes 18,448 hectares of exploration and exploitation concessions in the Atacama region of Chile, approximately 100 kilometres north of Copiapo in an active mining district that is home to all the major IOCG deposits in Chile.
There is excellent mining infrastructure in the area, and the property is situated immediately adjacent to the west of Capstone Mining’s Santo Domingo mine development project and 10 km northeast of Mantos Copper’s Mantos Verde mine.
Capstone Mining Corp. and Mantos Copper Bermuda Limited are currently completing a business combination. Proximity to other mining projects in the area does not provide any assurances with respect to the prospects at the San Pietro Project.
For further information please visit: https://goldenarrowresources.com/
