Golden Arrow Resources (GRG.V) has announced the assay results from an additional nine drill holes on its Chinchillas property with 180 g/t AgEq over 27 meters and 227 g/t AgEq over 11.5 meters as best intervals.

What’s more important is that four of these holes were designed as part of a step-out drill program which was intended to follow up on a technically very interesting hole that was drilled last year. As all of these four new holes (located between 50 and 100 meters from ‘discovery’ hole 126) intersected the same type of mineralization at approximately the same depth, the GRG geologists are excited as these holes will very likely lead to another resource increase and increase in the NPV of the project. VP Brian McEwen now expects the pit configuration at Chinchillas could be changed leading to further improvements of the Chinchillas economics.

Meanwhile, the company also reported it has acquired a third concession of 883 hectares on the Western border of the Chinchillas and Chinchillas I concessions. This isn’t a surprise as the 4 new step-out drill holes have opened the mineralization further to the west and Golden Arrow now clearly feels there might be more to be discovered.

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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.

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