Golden Arrow Reports Chinchillas Drill Results And Financing
Golden Arrow Resources ended last week on a high note, announcing Friday the results of further drilling at its Argentina-based Chinchillas silver-lead-zinc deposit. It also announced a US$537,000 non-brokered private placement.
Golden Arrow Resources (TSXV:GRG) ended last week on a high note, announcing Friday the results of further drilling at its Argentina-based Chinchillas silver-lead-zinc deposit. Specifically, the company released results from four holes completed as part of a Phase IV drill campaign at the project. According to Golden Arrow, all of the holes "encountered significant silver, lead and zinc intercepts." Notably, hole CGA-170 intersected 30 meters averaging 250 g/t silver equivalent, including 5 meters at 997 g/t silver equivalent. Speaking positively about the results, Brian McEwen, vice president, exploration and development at Golden Arrow, commented, "[w]e were pleased with these results as they show significant silver mineralization in the eastern basement zone which previously had not been tested. The resources in this area should increase, along with the other areas within Chinchillas that have been tested by this drill program, when we update our resource estimate this summer." Financing plans Golden Arrow also announced a non-brokered private placement on Friday. The company is looking to raise US$537,000 by selling 442,056 common shares for US$1.214777 each. According to the release, the money will be put towards more exploration at Chinchillas as well as general working capital purposes. That's not the only money set to come at Golden Arrow in the near future. Last month, the company announced plans to eventually sell the shares of Pretium Resources (TSX:PVG,NYSE:PVG) that it gained via a transaction with Silver Standard Resources (TSX:SSO,NASDAQ:SSRI). What's next? In terms of what's next at Chinchillas, more exploration is on the docket right away. The Phase IV drill program currently taking place is 11,200 meters in, with about 5,000 meters remaining. As mentioned, Golden Arrow will also be looking to update its resource estimate for Chinchillas this summer. The current estimate shows that it holds an indicated 72.3 million ounces of silver, or 95.9 million ounces silver equivalent, and an inferred 40.2 million ounces of silver, or 68.7 million ounces silver equivalent.