Issue link: http://resourceworld.uberflip.com/i/1099276
44 www.resourceworld.com A P R I L / M A Y 2 0 1 9 MINING Golden Arrow expanding South American presence On the heels of achieving commercial production at its Chinchillas silver (lead, zinc) mine in northern Argentina, Golden Arrow Resources Corp. [GRG-TSXV; GARWF-OTCQB; GAC-FSE] has picked up a couple of projects across the border in Chile and is now taking a look at Paraguay. In a synergistic set of circumstances, SSR Mining Inc. [SRRM-TSX, NASDAQ] was running out of ore at its Pirquitas silver mine not far from Golden Arrow's Chinchillas deposit. Known as the Puna operations, since December last year, Chinchillas ore is now trucked to the Pirquitas mill. For 2019, the partners are expected to produce 6-7 million ounces of silver at cash costs of between $8.00 and $10.00 per payable of silver ounce sold. Puna is owned 75% by SSR Mining and 25% by Golden Arrow. Meanwhile, Golden Arrow has signed a definitive agreement to option a 100% interest the advanced-stage, road-accessible Indiana gold-copper project in Chile which features a near-surface deposit of high-grade gold and copper, vein-hosted mineralization. The property hosts an historic inferred resource estimate of over 600,000 ounces of gold equivalent comprising 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 report. Plans are to upgrade historic resources to current standards. The deposit area is permitted for mining and there are two ramps (sloping tunnels) that enable underground access for exploration and development. To date, some 13,000 metres of diamond drilling has been completed in 40 holes and about 2,000 chip and trench samples have been collected. Metallurgical testing for flotation has demonstrated 90% gold recoveries and 92% copper recoveries. The dimensions of the deposit have not been maxed out and there is "sig- nificant potential' to increase the size and grade of the deposit, according to the company. With mining permits in hand, this project can be fast-tracked to production. Water and power are available and there are no environmental concerns. In addition, Golden Arrow has also signed an option agreement to acquire the Atlantida porphyry copper-gold project located 35 km east of the Indiana Project. It consists of two land packages that have been consolidated into one project. The road-accessible Atlantida also hosts an historic resource with an esti- mate totalling 427 million tonnes averaging 0.43% copper equivalent based on 29,000 metres of drilling. There is also good expansion potential. Joseph Grosso, Executive Chairman, President and CEO, told Resource World that Golden Arrow is now looking for suitable projects in Paraguay which stretches along the northeast border of Argentina. He noted that Paraguay's mining industry is in its infancy and, based on findings of his geologists there, the country offers some outstanding first-mover opportunities. n projects and adding value to them." In February 2019, Fidelity acquired 44.5-100% interests in a portfolio of mineral conces- sions which collectively constitute the Greater Las Huaquillas Project in northern Peru. The concessions are located immediately south of the Ecuadorian border where recent exploration success and corporate activ- ity in Ecuador highlights the increasing interest in this historically underexplored region. "The acquisition of our interest in the core Las Huaquillas Project and the subsequent staking of adja- cent concessions on a 100% basis by Fidelity Minerals provide the company with a very significant resource appraisal opportunity which we expect to advance in 2019," said Graham. Based on historical exploration at Greater Las Huaquillas, five mineralized zones have been identi - fied, one of which hosts a non-compliant geological resource of 6.57 Mt grading 2.12 g/t gold and 25.2 g/t silver – equivalent to 446,000 ounces of gold and 5.3 million ounces of silver at a 1 g/t gold cut-off. This geological resource at the Los Socavones anom - aly is but a part of a major NE-SW trending mineralized fault zone that extends for at least 2.5 km and has an average true thickness of about 19 metres with a maxi- mum thickness of 65 metres within the zone's centre. Some 1,000 metres south of Los Socavones lies the Cementerio Cu-Au porphyry, a 600 by 900-metre sub- circular, multi-phase diorite intrusion spatially-related with copper mineralization and where hole LH-97-04 returned 0.47% Cu, 0.11 g/t Au and 4.5 g/t Ag over 99.5 metres (core length). In addition, the San Antonio porphyry system is located 1,000 metres NW of the Los Socavones Zone and coincides with a prominent copper-gold soil geo - chemical anomaly developed over a calc-alkaline quartz diorite intrusion measuring 500 x 900 metres. There, hole LH97-17 intersected up to 0.32% Cu, 0.45 g/t Au and 3.0 g/t Ag over 69.0 metres (core length), including 0.46% Cu, 0.74 g/t Au and 4.9 g/t Ag over 21.0 metres. Additional anomalies at El Huabo (Au-Ag) and Las Huaquillas anomaly are located adjacent to the Los Socavones structure and appear to be part of a low- sulphidation epithermal system. n www.resourceworld.com