Golden Arrow to Commence Step out Drilling from the Discovery Hole on Poncha Gold Project
Thursday, March 12th, 2009
Golden Arrow Resources Corporation, a Grosso Group member company, is pleased to announce that it has signed a drill contract for up to 3000 meters of step-out diamond drilling on the Poncha Gold Project in San Juan Province, Argentina. Mobilization and site preparation is underway with drilling planned to start within the next few weeks. Drilling will target, with regular step-out holes, the strong mineralized zone intersected by discovery hole RCPC13 (61m averaging 3.04 g/t Au and 7.16g/t Ag; March 27, 2008 News Release) within the 2km by 2km South Target epithermal precious/base metal zone.
In light of the compelling drill results on Poncha and the proximity to quarterly royalty revenue expected to begin by June 2009, the Company has decided to fast track a drill program to follow up on this exciting new gold discovery.
Synthesis of the alteration, structural setting, geochemistry and previous drill results of the South Target area indicates the potential for gold mineralization in large, structurally controlled breccia bodies or structural zones of “intermediate sulphidation” affinity (e.g. Kelian, Indonesia, 8Moz gold; Rosia Montana, Romania, 8.5Moz gold; and Fruta del Norte, Ecuador 13.7Moz gold).
Golden Arrow is earning up to a 100% interest in the Poncha Project from Teck Cominco Limited’s subsidiary, Teck Cominco Argentina Ltd. (“Teck”), by fulfilling expenditure and tenure maintenance requirements subject to Teck’s option to re-earn up to a 65% interest in the Poncha property (see April 10, 2007 News Release).
“We are pleased to begin the highly anticipated step-out drilling on our discovery at Poncha,” stated Joseph Grosso, President and Chief Executive Officer of Golden Arrow Resources. “With the hole ending in mineralization, we are excited to be able to test the extension of our find as it brings back the memories of our other two world class discoveries.”
For further information visit: www.goldenarrowresources.com