Golden Arrow Resources (GRG.V) has released new drill results on its Chinchillas Silver project in Argentina, and today’s drill results could be a game-changer for the further development of the project. The company released five step-out holes and one should not underestimate the importance of finding mineralized zones 1.5 kilometers away from the current resource envelope. All five holes were drilled at a distance of 300-1500 meters from the currently known resource at Chinchillas, and all five holes have intercepted mineralization with grades and widths in line with the previously released exploration results.
Hole 110 was drilled towards the Socavon del Diablo zone and intersected 17 meters of 4.9%ZnPb (which equals 4 silver-equivalent ounces) indicating that Chinchillas could become an important producer of zinc as well. Hole 111 (approximately 1000 meters from the Socavon del Diablo zone) intersected several short widths such as 4 meters 91 g/t AgEq and 2 meters of 297g/t (with 5.6% ZnPb). These results on the new zone which is now called ‘Pascua’ were confirmed by hole 112 which was another 400 meters from Hole 111 and intersected for instance 7 meters of almost 4oz AgEq per tonne.
We think it’s intriguing to see the continuous exploration success at Chinchillas which has led to the discovery of the new Pascua zone, even though there were no traces of mineralization at surface. This could mean that the Chinchillas project could be much much larger than we currently think it is, but it could also mean the project could be converted into a large-scale bulk tonnage silver-lead-zinc project, as the zinc and lead values at some parts of the property are better than the silver grade.
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.