Golden Arrow expands into Chile

Amerigo MVC plant ramp-up on course

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The move signals a geographic expansion for the company which has made a name for itself as a first mover in Argentina, when economic reforms opened the country for foreign investment in 2003.

Under the first of two accords, Golden Arrow has entered a 48-month earn-in period "with minimal costs" in the first year and total payments of US$4 million. The property is subject to a 2% net smelter royalty (NSR), with half available for repurchase on certain terms.

Amerigo MVC plant ramp-up on course

amerigo resources

The second agreement also entailed a 24-month earn-in period for total payments of US$2 million and a 1% NSR that could similarly be bought out under certain terms.

Atlantida is described as an advanced project with combined mineral rights from two previous separate owners. It includes an extensively drilled copper-gold deposit with an historic resource estimate.

By consolidating the land package, Golden Arrow believed there was potential to identify new mineralisation and define a significant copper-gold resource.

"Expansion into this area of Chile that is host to multiple world-class copper and gold deposits broadens our opportunities to acquire advanced projects like Atlantida, in order to potentially quickly build resources and value for our shareholders," said chairman Joseph Grosso.

Previous exploration at Atlantida resulted in an historic resource estimate of 427 million tonnes averaging 0.43% copper-equivalent, the company said.

The resource included a deep porphyry copper-gold target and a near-surface skarn with higher gold grades that together covered an area of about 22ha. The skarn zone was located on the western edge of the claim hosting the historic resource, and extended onto an adjacent claim, now under option by Golden Arrow.

This claim had seen historic workings but had had limited modern exploration conducted.

Golden Arrow said it recovered rock samples graded up to 3.7 grams per tonne gold and 1.98% copper.

The company planned to undertake an aggressive exploration programme to delineate and drill test targets throughout the project area under the auspices of its fully-owned subsidiary New Golden Explorations.

The news lifted the stock 9.26% Thursday to C295c a share, giving it a market capitalisation of $30 million. The stock has lost 44% of its value in the past 12 months.