Golden Arrow Resources (GRG.V) has announced more drill results at their Argentinean Chinchillas project. The infill holes at Silver Mantos have confirmed the mineralization as the company intercepted 7.4 meters at 449g/t and 4 meters at 114g/t.
The company also drilled some step-out holes at the Socavon target, which returned an interesting 8 meters of 58g/t silver and 3.4%ZnPb as well as 9 meters at 49g/t silver and 4.3% ZnPb in hole CGA-51.
Golden Arrow also drill-tested a new target zone on the north slope of the Chinchillas basin, 150 meters north of the Socavon and Silver Mantos zones. The company intercepted a very encouraging 13 meters at 108g/t silver, which confirms the upside exploration potential on the property.
Brian McEwen, VP Exploration is happy with these drill results, saying ‘Several more recent drill holes have been pushed deeper into the basement rocks and significant mineralization has been observed in drill core, particularly below Silver Mantos, so we are looking forward to the results from additional upcoming holes’.
This press release continues to confirm the excellent exploration potential at Golden Arrow’s Chinchillas project, and we are confident the company will be able to present in excess of 50Moz AgEq in its first resource estimate later this year. If we’d apply a value of $1/OzEq on our expectations, (which isn’t out of the question as Mirasol Resources (MRZ.V) received $2/oz from Coeur D’Alene (CDM.TO, NYSE:CDE) as consideration for the sale of 49% of the Joaquin-deposit), the company should be trading at at least $60M ($50M for Chinchillas + $10M in cash), or approximately C$1.5/share, excluding the value of the Mogote Joint Venture with Vale.
We expect to release a Q&A report on Golden Arrow Resources shortly.
Disclosure: Golden Arrow Resources Corp. is a sponsoring company. Please see our disclaimer for current positions.
