Drill results that revealed continuous gold and silver mineralization over a lengthy intercept at the Poncha gold-copper project, in Argentina, drove Golden Arrow Resources‘ (GRG-T) shares up 75% in morning trading to $1 apiece.
The five reverse-circulation holes were drilled late last year and tested targets within the 2 by 2-km South target area of the project, intersecting breccia-stockwork-hosted mineralization.
Hole RCPC13, drilled in the northwest sector of the South target, provided the strongest grades by far, highlighted by 266 metres of 1.21 grams gold per tonne and 3.3 grams silver starting from 129 metres down-hole. Within the lengthy interval were shorter sections of: 9 metres grading 4.88 grams gold and 8.43 grams silver starting at 142 metres; and 61 metres of 3.04 grams gold and 7.16 grams silver from 270 metres, including 8 metres of 10.91 grams gold and 24 grams silver from 305 metres. The intervals also cut low-grade copper, lead and zinc.
Golden Arrow stock traded up to 43 higher at $1 before settling at around 84 apiece on more than 8 million shares traded.
The holes, totalling 1,550 metres, mark the end of second-phase drilling at the South target; first-phase drilling returned highlights of 6 metres averaging 7.4 grams gold last year.
Golden Arrow is planning follow-up drilling around hole 13.
The other four holes reported returned shorter intervals (up to 6 metres) of weaker mineralization.
The polymetallic mineralized zone is related to a prominent induced-polarization anomaly interpreted to reflect the concentration of sulphides (pyrite, galena and sphalerite) associated with epithermal mineralization, and occurs along a northwest-striking contact between porphyry intrusive rock and volcaniclastic breccias. The zone is open in all directions.
The South target is one of two mineralized zones at Poncha; the other is the copper-gold porphyry Northern target, 2 km away.
Golden Arrow is earning up to a 100% stake in Poncha, situated in the Cordillera Frontal in San Juan province, from Teck Cominco (TCK.B-T, TCK-N). Under a deal reached last year, the junior is spending US$3.2 million over three years on exploration at Poncha, plus payments of US$2.88 million to the underlying property owner, who retains a 1% net smelter return royalty. Teck has a back-in right for 65% of the project.
Golden Arrow also holds multiple projects in Argentina, plus the Rio Tabaconas gold project in northern Peru.
Its shares have traded within a 52-week window of 45-$1.50.
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