Argentina Mining Play

[Ed Monton]

Golden Arrow targets Timon Cruz, collects samples


2006-11-16 15:02 ET - News Release

Mr. Joseph Grosso reports

GOLD ROCK AND SOIL ANOMALIES ON THE TIMON CRUZ GOLD PROPERTY, JUJUY

Golden Arrow Resources Corp. has provided the concession of the 100-per-cent-owned, 2,000-hectare Timon Cruz gold property in Sierra de Rinconada, district of Jujuy province, Argentina, as well as the results from the phase I rock and soil sampling program. Analytical sample results identify multiple gold anomalies associated with quartz-gold vein occurrences. The target on Timon Cruz is a high-grade, quartz-gold vein deposit.

Phase I soil sampling comprised 206 samples collected over a 1,800-metre by 500-metre grid in the central portion of the Timon Cruz property. Rock samples from the same area returned assays ranging from 0.09 part per million to 9.84 parts per million or grams/tonne (g/t) gold. Gold anomalies identified by the soil-sampling program remain open in all directions.

Golden Arrow is currently planning further work on the property which will include extension of the soil grid, composite talus fines and detailed rock sampling, as well as geologic mapping of the main lithologic units to constrain drill targets. The company has recently been carrying out a comprehensive channel sampling program on the San Jose gold project in Jujuy aimed at delineating the extent of mineralized zones reported on in the Aug. 15, 2006, news release in Stockwatch. Results from this work are expected shortly.

Technical summary

Timon Cruz is located in the Sierra de Rinconada in the Argentinian Puna of Jujuy province. Gold mineralization in the district is commonly related to quartz veins hosted in a folded and faulted sequence of Ordovician rocks. Mineralized bodies have diverse geometries relative to folds such as bedding-parallel laminated veins, straight-crosscutting brittle veins, fault-related veins or anticline-hinge "reefs." In general, mineralization extends along the fold trend and seems to be located in first-order anticlines.

To date, exploration work at Timon Cruz has included reconnaissance mapping (aimed at identifying favourable lithologic and structural settings), rock sampling and soil sampling. At Timon Cruz, 10 rock samples from outcrop, old workings and mine dumps were collected. Rock samples were collected over a strike extent of approximately 1,500 m parallel to the axial planes of two anticlines. Results are listed below.


PRELIMINARY ROCK SAMPLE RESULTS FROM TIMON CRUZ PROPERTY, JUJUY

                                                                 Au 
                                            Au (+200)    Au (-200) weighted 
               Length                      ppm (fine  ppm (coarse   average 
 Sample   Type     (m)  Description         fraction)    fraction)     (ppm) 
  
 GA 1558  Float         Selected quartz  
                        veins in dump of  
                        small open pit          1.24         2.71      1.36 
  
 GA 1559  Chip    1.5   Bleached shale  
                        mm scale quartz  
                        veining and  
                        pyrite-arsenopyrite 
                        aggregates up to  
                        six cm across           0.08         0.27      0.09 
  
 GA 1560  Float         Carbonaceous shale,  
                        quartz veining and  
                        5% sulphides            0.36         0.38      0.36 
  
 GA 1561  Chip    0.5   Small open-pit  
                        carbonaceous shale 
                        and large  
                        pyrite-arsenopyrite  
                        cubes                   0.19         0.18      0.19 
  
 GA 1562  Chip    1.0   Sandstone with 3 to 5% 
                        sulphides and discordant 
                        quartz veins            0.20         0.12      0.19 
  
 GA 1563  Float         Black shales with 3 to 
                        5% sulphides that form  
                        large totals, BLPV      0.44         0.33      0.44 
  
 GA 1564  Float         Carbonaceous shale with 
                        up to 7% arsenopyrite  
                        but without quartz  
                        veins                   2.37         2.15      2.36 
  
 GA 1565  Chip    2.0   Saddle reef in the  
                        southern area, milky  
                        quartz and hematite     0.13         0.04      0.12 
  
 GA 1566  Mine dump     Small underground old  
                        working, carbonaceous  
                        shale with high sulphide   
                        contents (5%) and quartz 
                        veins                   9.35        24.53      9.84 
  
 GA 1567  Chip    0.4   BLPV (greater than 40%)   
                        in the steeply dipping  
                        eastern limb            0.11         0.04      0.11 
 

.........


Notes: BLPV equals bedding, laminated parallel vein. Sample results are
calculated as the average between the fine and coarse fraction weighted by
each fraction weight.

Since coarse gold is a common occurrence within the Sierra de Rinconada deposits, rock samples are processed as two subsamples obtained after grinding and sieving the material through a No. 200 Tyler mesh (75 microns). Samples are reported as the weighted average of both fractions. Interestingly, at Timon Cruz, the fine fraction has similar grades than the coarse fraction (for example, GA 1561 and GA 1564). This indicates that gold distribution is relatively homogeneous within the sampled intervals.

The first-phase soil sampling comprised 206 samples collected every 50 m along 19 east-west lines spaced 100 m apart. The soil grid covered a 1,800 m by 500 m area located in the central portion of the Timon Cruz property where the rocks samples reported above were collected.

Soil samples ranged from less than five parts per billion (below detection limit) up to 428 parts per billion gold. Samples with values above the detection limit represent 41 per cent of the samples. Approximately 10 per cent of the soils have gold concentrations higher than 20 parts per billion. From the limited population of samples collected to date, the best rock sample results come from samples located close to soil anomalies. Two main anomalous areas were detected. In the northern portion of the grid, a north-south-oriented anomaly extends over approximately one kilometre in length and up to 250 m in width. To the south, a north-northwest-oriented anomalous trend, also approximately one km in length, is developed. Both anomalies have a morphology consistent with a high-grade vein source rather than a wider disseminated body.

In the area of the soil grid on the Timon Cruz project, the A horizon is generally absent and the sampled material is a mixture of B and C horizons. The sampling procedure involved collecting approximately one kilogram of material finer than a Tyler mesh No. 9 (2.05 millimetres) from five to 20 centimetres below the surface in order to reduce the influence of aeolian-transported particles. The sampled material is submitted to the lab, where it is dried and processed. Reported results are from material finer than a No. 80 Tyler mesh (0.18 mm).

The next phase of exploration work at Timon Cruz will involve extension of the soil grid, surface chip and channel rock sampling, and geologic and structural mapping of the claimed area. This work program will be carried out over the next several months. Additional maps and photos from the Timon Cruz gold property are available on the company's website.

Analyses for the soil samples reported herein were performed by SGS Lakefield Research, an internationally recognized assay service provider, in Santiago, Chile, whereas that analyses for the rock samples were performed by Alex Stewart Assayers in Mendoza, Argentina. Exploration work reported on in this release was carried out under the supervision of Golden Arrow's Argentine exploration manager, Diego Charchaflie, MSc, and senior geologist Dr. Gustavo Rodriguez, PhD. The technical information contained in this release has been reviewed by Dr. David A. Terry, PGeo, vice-president of exploration for Golden Arrow, a qualified person as defined in National Instrument 43-101.

Golden Arrow is in a strong position for growth with only 7.8 million shares outstanding, a market capitalization of $5.5-million, a treasury with $2.5-million in cash and marketable securities (as of Dec. 31, 2005), no debt and a 1-per-cent net smelter royalty (NSR) on Viceroy Exploration Ltd.'s exciting Gualcamyo gold project that is currently at the feasibility stage. Golden Arrow's property portfolio contains 28 precious and base metal projects that cover over 125,000 hectares of prospective ground in both Argentina and Peru.

Through the company's alliance with the Grosso Group, new opportunities are continuously being presented and reviewed. Other members of the Grosso Group include IMA Exploration Inc., Amera Resources Corp., Astral Mining Corp. and Gold Point Energy Corp.

We seek Safe Harbor.