Golden Arrow Resources (GRG.V) has announced the first batch of results from the Phase III drill program at the Chinchillas project, in Argentina’s Jujuy province. We are extremely excited by the drill holes in the Mantos Basement where the company drilled 54 meters of 290g/t silver and 2.3% ZnPb. And it doesn’t end there. A little bit deeper, the drill bit found another 13 meters grading 359g/t silver and 2.3% lead. Both intercepts include an extremely high-grade interval of respectively 5 and 2 meters grading more than 1150g/t silver. Another hole in the Mantos Basement intersected 43 meters of almost 6 ounces of silver per tonne and 1.3% lead.
The Mantos Basement revealed the most exciting drill results, as the assays from the Socavon and Silver Mantos zone were more in line with expectations. As of this moment, 4200 meters of the planned 6000 meters were completed, but Golden Arrow’s management team decided to increase the amount of drilling to 8000 meters, based on the very encouraging first round. These drill results bode very well for both a resource upgrade and expansion, as the mineralization remains open in most directions and at depth.
Golden Arrow continues to expand the Chinchillas project, and we are very confident the current resource estimate of 105 million silver-equivalent ounces will be increased substantially, which should also have a positive impact on the mine life and ultimately the Net Present Value of the project.
Disclosure: The author holds a long position in Golden Arrow Resources. Golden Arrow is a sponsor of the website. Please see our disclaimer for current positions.