Golden Arrow Resources (GRG.V) has released some more drill results from its 9,000 meter drill program at its Chinchillas silver project in Argentina’s Jujuy province. The three holes of which the results have been released were drilled in the South Pascua and Dome zone which hasn’t seen any decent drilling before. What’s interesting is the fact these three holes were deep holes as two of them reached a depth of approximately 350 meters with intermittent mineralization. The average grade is a bit low, but this zone definitely warrants more attention as it has the potential to increase the tonnage of the Chinchillas deposit substantially.
The size of this new zone is emphasized by VP Exploration Brian McEwen, who estimates that the zone could contain 100-160 million tonnes of ore at an average silver-equivalent grade of 1-1.25 ounces per tonne for an additional resource of 100-200M oz AgEq. However, this doesn’t really change our view of Chinchillas, as even though an additional 100-160 million tonnes would be great, the average grade would be too low to be economical in the current metal price environment.
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.