Golden Arrow Resources Corp. [GRG-TSXV; GARWF-OTCQB; GAC-FSE] has signed a definitive option agreement to acquire a 75% undivided interest the Libanesa project in Santa Cruz province, Argentina.
Libanesa is a 14,500-hectare silver-gold (lead) project located at the northeastern margin of the Deseado Massif Gold-Silver metallogenic province, approximately 70 km west from the port of Puerto Deseado, 40 km northwest of the Cerro Moro Mine operated by Yamana Gold and 100 km northeast of the Don Nicolas mine operated by Cerrado Gold. Libanesa hosts several diversified geological, geochemical and geophysical supported targets and is permitted for drilling.
“Our team is eager to move forward on this highly prospective project and we are finalizing the field programs to quickly and efficiently advance the targets towards discovery,” commented Joseph Grosso, Golden Arrow’s Executive Chairman, President and CEO.
Golden Arrow is planning to mobilize an exploration team to Santa Cruz this month. The initial plan is to complete additional surface work which may include geophysical surveying, with the intent of refining the targets for a drill program to start in the first quarter of 2022.
Cerro Plomo is the principal prospect and is characterized by a well mineralized Au/Ag hydrothermal breccia that is exposed at surface and supported by both chargeability and resistivity geophysical anomalies at depth. Peripheral polymetallic veins at the Libanesa Main prospect represent secondary targets and are supported by strong base metal +/- Au mineralization. The Lagunita prospect is a third prospective zone, which has reported some encouraging rock chip Au values from more typical low sulfidation type epithermal veins and breccias. This prospect will require additional surface exploration to vector into the potentially better mineralized parts of this extensive vein system, where intermittent vein occurrences, outcropping/subcropping through post mineral cover, have been mapped over a strike length of at least 2.3 km.
Mirasol Resources Ltd. granted Golden Arrow an option to earn a 75% interest in Libanesa over six years by incurring exploration expenditures totaling US$4,000,000; paying US$500,000 per year during the first two years; and US$750,000 per year thereafter; making cash payments to Mirasol totaling US$1,000,000 with US$100,000 to be paid on the second, third and fourth anniversaries; US$250,000 on the fifthth anniversary; and US$450,000 on the sixthth anniversary.
The initial US$500,000 in exploration expenditures is a firm commitment, but it may be incurred over 24 months instead of 12 months, if all permits required for exploration are not in place by the end of March 2022. In addition, Golden Arrow is required to complete a minimum of 2,000 metres of drilling by the end of the second year. Golden Arrow will be the operator during the option period.
Upon completion of the option, Mirasol and Golden Arrow will hold 25% and 75%, respectively, in a participating JV company holding Libanesa. If either party’s equity interest is diluted below 10%, it will convert to a 2% NSR.
The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.