Finding rich copper in elephant country

Please find below a special message from our advertising sponsor, Golden Arrow Resources. Golden Opportunities is a free service that gives you valuable investment intelligence all year long at no charge, and advertisements allow us to continue sending these reports.

Contact Us | Privacy Policy | View in Browser | Forward to a Friend

Drilling Rich Copper In Elephant Country

Tiny Golden Arrow Resources (GRG.V; GARWF.OTCQB) was able to scoop up a massive copper project last year amongst world-class mines.
 

Management had a theory of why the previous operator was missing the big, rich copper mineralization that characterized the surrounding mines.
 

Now it’s validated that theory in the best way — with drill holes hitting long sections of copper, gold, iron and cobalt.

Dear Fellow Investor,

Sometimes the little guys win.

The history of mineral exploration is replete with examples where a small, nimble outfit with talented, entrepreneurial geologists have made big discoveries right from under the noses of the world’s biggest mining companies.
 

In fact, it’s fair to say that most discoveries are made by smaller companies.

Now the stage is set for it to happen again — and potentially in a very big way — with Golden Arrow Resources (GRG.V; GARWF.OTCQB).

Golden Arrow controls the massive, 71-square-mile San Pietro copper/cobalt project, located in the midst of copper “elephant country” in northern Chile.
 

Importantly, San Pietro is surrounded by large copper mines and deposits...and lies directly adjacent on the west border of Capstone Copper’s fully permitted Santo Domingo iron oxide, copper, gold and cobalt (IOCG) mine development project.

Click image to enlarge.

Considering that Santo Domingo is a $1 billion development and is just one of a number of massive mines in northern Chile, by far the largest copper-producing area in the world, one has to wonder how Golden Arrow was able to snatch up such a large property position here.
 

After all, with a market cap of US$8 million, GRG is a long way from Wall Street.
 

Really, it’s like a small store surrounded by skyscrapers.
 

So how did they do it?

Betting On A New Theory

First off, it’s not too surprising that Golden Arrow was able to find something the big guys missed.
 

After all, they’ve done it before.
 

Golden Arrow’s last discovery, the Chinchillas Silver Project in northwest Argentina, is the prime example. GRG was able to acquire Chinchillas because the prior explorer found silver there, but didn’t have the vision and insight to find enough mineralization.
 

Golden Arrow geologists made a new interpretation of the geology, drilled it out, defined resources, and sold it to nearby producer SSR Mining for a big profit. It’s now a producing mine in the SSR stable.
 

Even that discovery wasn’t surprising, because this is a team of long-term exploration specialists with four major discoveries under their belts in South America, with two in production today by major miners, one in extended preparation and one still expanding.

That script is now playing out again at San Pietro, which was previously controlled by the huge Sumitomo Metal Mining group.

Sumitomo drilled no less than 83 holes and 34,000 meters at San Pietro, discovering strong mineralization including copper, iron, gold and notably cobalt.
 

But they didn’t find quite enough to overcome market conditions and corporate bureaucracy, and the project sat on the big company’s shelf from 2012 until a year ago...when Golden Arrow was able to make a deal to acquire the project.
 

Since gaining control, GRG has relogged the key drill holes, re-interpreted numerous geophysical surveys, added a 3-D IP/resistivity survey, modernized and added to the database to refine new drill targets...
 

...And completed the company’s first round of drilling.

First Drill Holes Confirm The New Model

Golden Arrow’s recently completed Phase-1 drill program consisted of 13 holes that totaled 4,000 meters into four key target areas.

Bottom line: They hit rich mineralization that confirmed their re-interpretation of the geology...with holes that hit not only copper, but gold...iron...and cobalt.

As VP-Exploration & Development Brian McEwen summed it up: “We met our original objectives at the Rincones zone, confirmed our updated model and found excellent mineralization where we hoped. The surprises from drilling were all positive, including strong copper and cobalt mineralization close to surface, and generally stronger gold assays than anticipated.”

Click image to enlarge.

Hitting It Big At The Rincones Zone

Golden Arrow’s geologists dedicated six of the 13 drill holes to the central Rincones target.
 

This is the area where the most holes by Sumitomo had been drilled, and is anticipated to be the first area for Golden Arrow to initiate a resource delineation program to potentially define an initial resource estimate.
 

Interestingly, the central part of the area had been sparsely tested by the previous operators. GRG’s Hole 12 was drilled directly into this section to test the depth extent of a newly-mapped copper-bearing magnetite outcrop.
 

As you can see, they hit what they were hoping for:

• 64.2 meters @ 0.86% copper, 0.20 g/t gold, 196 g/t cobalt and 25.9% iron starting at 42.8 meters depth, and
   
• 75.0 meters @ 0.23% copper, 0.03 g/t gold and 67 g/t cobalt starting at 243 meters depth, followed by a short high-grade cobalt-iron interval of 3.3 meters @ 0.22% copper, 0.05 g/t gold, 333 g/t cobalt and 33.37% iron.

Hole 5, drilled 300 meters southwest of Hole 12 in the southern Rincones area, was also a success:

• 79.8 meters @ 0.29% copper, 0.05 g/t gold and 179 g/t cobalt, including 15.3 meters @ 0.64% copper, 0.10 g/t gold and 388 g/t cobalt at 272.1 meters depth.

It didn’t end there, as Hole 7 cut similar mineralization, starting at a shallow depth of just 38.2 meters.

Click image to enlarge.

Similar Results To Capstone’s Santo Domingo
Mine Development Next Door

San Pietro is situated adjacent to the Santo Domingo mine development project owned by Capstone Copper, as noted earlier.

Importantly, Santo Domingo hosts similar styles of iron-oxide, copper, gold and cobalt mineralization to that observed at San Pietro in deposits.

Reported measured and indicated resources, inclusive of reserves, are 536,548 kt averaging 0.30% copper, 0.04 g/t gold, 229 ppm cobalt and 25.7% iron (see Santo Domingo Project, Region III, Chile, NI 43-101 Technical Report. Prepared by Maycock et al, effective Feb. 19, 2020, [http://www.capstonecopper.com%3c/a%3e).*%3c/span%3e%3c/span%3e%3cbr]www.capstonecopper.com).*
 

* Investors are cautioned that proximity to these deposits does not indicate that similar mineralization will occur at San Pietro, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario.
 

However Golden Arrow uses these deposits as models to guide the exploration process.

More Potential At New Targets

In addition to the drilling at Rincones, Phase 1 included drilling at three exciting, earlier-stage exploration targets.

GRG’s first two holes into the Colla zone, the first hole into the Mariposa zone and the first hole into the Rodeo zone were all successful in terms of confirming potential for additional near-surface mineralization.

Notably, the Colla target provided indications of some high-cobalt areas, and near-surface oxide copper was indicated at Mariposa and Rodeo.
 

Modeling of drill results from Golden Arrow’s Phase 1 program and the historic database is underway to refine priority targets for the next drill program.
 

That’s going to be another 4,000 meter-program...and the drills are going to start turning in October.

Tune In Now

The world desperately needs more copper...which is why this situation is so compelling.
 

Surrounded by major copper mines — and lying adjacent to Capstone’s large, emerging Santo Domingo copper-cobalt development — Golden Arrow’s San Pietro project seems likely to grab the attention of big miners soon.

And that’s why investors need to give it their attention now.

With the second round of drilling coming up, with the share price on the floor of the basement, it’s time to tune in.

CLICK HERE
To Learn More about Golden Arrow Resources Corp.