Sep 09, 2010
Golden Arrow Options Two Projects to Vale
Golden Arrow Resources Corporation (GRG - TSX.V) ("Golden Arrow" or the "Company") is very pleased to announce that it has entered into an option agreement with Vale Exploracion Argentina, S.A. ("VEASA"), a wholly-owned subsidiary of Vale S.A. ("VALE"), on its Mogote copper-gold-silver porphyry/epithermal project in San Juan Province and its Purulla copper-moly porphyry project in Catamarca Province, Argentina.
Under the terms of the option agreement Vale can earn an initial 70% interest in the projects by completing $US 6.8 million in exploration expenditures and making $US 2.3 million in cash payments to Golden Arrow over 3 years, in addition to making underlying vendor payments of $US 1.025 million with regard to the Purulla project. If Vale elects to drop one of the two properties during the option, the overall terms will remain the same with the exception that if Purulla is dropped Vale will no longer be responsible for making the underlying vendor payments. Vale has the option to increase its interest to 85% by funding and delivering a Feasibility Study within a further 3 year period. Subsequently Vale will have the option for a further 2 years to purchase Golden Arrow's remaining 15% interest in the project for fair market value. Golden Arrow will retain a 1.5% Net Smelter Royalty (NSR) of which Vale will have the option to purchase 0.5% for $US 7.0 million. Vale will be the operator during the term of the option. The exploration programs will be decided upon by a management committee comprised of one representative from each company. The option agreement includes a firm commitment by Vale to complete $US 800,000 in exploration expenditures and make $US 125,000 in vendor payments during the first year.
"This is a very good deal for both parties as it will accelerate the advancement of two of Golden Arrow's highly rated projects. I am delighted that our team has successfully negotiated this agreement with one of the most respected mining companies in the world," stated Joseph Grosso, President and C.E.O.
The 100% owned 8,300ha Mogote copper-gold-silver porphyry/epithermal project is centrally-located in the prolific Vicuna District of northern San Juan Province which includes NGEx Resources Inc's Josemaria copper-gold deposit in Argentina and Goldcorp Inc./New Gold's El Morro gold-copper porphyry deposit in Chile. The Mogote property covers multiple large porphyry/epithermal targets. Most of the work to date on the property has focused on the Filo Este and Filo Central targets on the northern portion of the property where trenching and drilling intersected wide intervals of copper-gold-silver mineralization (i.e. 489.3m averaging 0.23 g/t gold, 2.6 g/t silver and 0.17% copper in MOG-04-1A*). Three aditional targets in the central-southern portion of the property, including the large Zona Colorida anomaly, have seen only limited surface sampling. Golden Arrow recently applied for additional claims totaling 3,150ha on the Chilean side of the international border adjacent to Mogote to cover potential extensions to mineralized zones.
Golden Arrow holds an option to earn a 100% interest in the 5,000ha Purulla copper-moly project in Cajamarca Province. The project is located within a prominent NW-SE trending structural corridor that includes the Bajo de la Alumbrera porphyry copper-gold-moly mine 150km to the southeast and the El Salvador porphyry copper-moly mine in Chile 160km to the northwest. The Company believes that a significant untested porphyry Cu-Mo target has been identified at Purulla which covers a 1,000m by 300m zone of leached quartz-iron oxide stockwork with intense argillic alteration and anomalous Mo-Cu within a broader zone of alteration. This alteration zonation, along with IP chargeability anomalies identified at depth, are consistent with the presence of a porphyry Cu-Mo system with potential for a significant high-grade supergene-enriched Cu zone at depth. The property is drill-ready with permits in place.
About Golden Arrow Resources Corporation:
Golden Arrow is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan Argentina, which has paid the Company US$ 1,878,700 over the past 20 months, an attractive portfolio of highly prospective exploration projects, a pipeline of new opportunities under review and only 35.6 million shares issued and outstanding. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of the Grosso Group, a management company specializing in resource exploration for over 17 years.
About Vale Exploracion Argentina S.A.:
VEASA is a wholly-owned subsidiary of VALE, the world's second largest mining company by market capitalization with its headquarters in Brazil. VALE reported operating revenues of US$23.9 billion and net earnings of US$5.3 billion as of December 31, 2009. VALE is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.
About Grosso Group Management Ltd.:
Grosso Group is a management group founded in 1993 and is recognized as a leading pioneer of mineral exploration in Argentina and Peru. The Group operates with the objective of creating investor value through the growth of its affiliated companies which include: Golden Arrow Resources (TSXV: GRG), Golden Alliance Resources (TSXV: GLL), Blue Sky Uranium (TSXV: BSK), Windstorm Resources (TSXV: WSR) and Panthera Exploration (TSXV: PNX). For more information, please visit our website at: www.grossogroup.com
ON BEHALF OF THE BOARD
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & C.E.O.
*Panthera Exploration Inc. April 29, 2004 News Release
For further information please contact Joseph Grosso, President & CEO, or Investor Relations at 1-800-901-0058, or 604-687-1828 ext.248, or fax 604-687-1858.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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