Golden Arrow Resources (GRG.V) has released another batch of drill results from its ongoing Phase III exploration program which will consist of at least 8,000 meters being drilled at its Chinchillas silver project in Argentina’s Jujuy province. More than 6,500 meters have already been drilled, and the assay results of another ten holes have just been released.
The best hole of this batch was hole 107 which was drilled on the north slope, approximately 320 meters northwest from the Socavon del Diablo zone. This hole intersected 105 meters of 54g/t silver and 1.5% zinc for a total silver-equivalent of 106g/t which is in line with the average grade of the currently known mineralized zones at Chinchillas. This intercept included several higher grade zones such as 18 meters of almost six ounces of silver per tonne of ore with an additional 2.4% zinc-lead content. Additionally, the Mantos Basement-aimed hole encountered 71 meters of almost 4 ounces of silver per tonne and 1.5% lead.
The more drill results Golden Arrow releases, the larger the Chinchillas project seems to become, as almost all holes are intercepting mineralization, of which several zones are located outside the currently known resource estimates. As such, we remain convinced the updated resource estimate at Chinchillas will show a substantial increase in silver-equivalent ounces which will have a positive impact on the Net Present Value.
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.