Golden Arrow Resources Corporation (TSX-V: GRG) (FSE: G6A) (OTCQB: GARWF), is pleased to announce the results of the first mineral resource estimate for the San Pietro Copper-Gold-Iron-Cobalt Project in Chile.

MRE Highlights (see Table 1 for details):

• 492 million tonnes at an average grade of 0.23% Cu, 0.05 g/t Au, 14.43% Fe & 99 ppm Co in the Inferred category, including  
  • 2.5 Billion pounds of copper, and
  • 770,000 ounces of gold.

The pit-constrained MRE is supported by 32,733 metres of drilling, mostly from the Rincones target which has been the main focus of work to date, but with contributions from the adjacent Colla high cobalt-iron target. (see Figure 1).

Brian McEwen, VP Exploration and Development for Golden Arrow, commented, “We are thrilled to report this initial resource estimate and demonstrate our commitment to building value for our shareholders. In just three years we have turned a US$3.35M property purchase into an asset with substantial copper and gold resources that have the potential to rival other deposits in the region. As designed, our programs to date were successful in expanding and better defining the property’s main target, Rincones, resulting in the initial current Inferred mineral resource estimate being announced today. The next phase of drilling will focus on delineating higher grade breccias and mantos within the resource area as measured and indicated resources. We also plan an extensive metallurgical sampling program to gain a better understanding of the recoverable magnetic iron and cobalt recovery options. In addition, we ended our last program on a high note, with long mineralized intervals in large step-out holes at Rincones that support drilling further to the south and east to expand the resource. We are eager to continue our work as we are confident that there is plenty of potential remaining to increase the size and grades of these resources, as well as identify others within our vast property holdings.”

Table 1. Estimate of Inferred Mineral Resources Reported using 0.30% CuEq Cutoff 

Notes to Table 1:

1. In-Situ Mineral resources are reported within a pit shell using metal prices of US$4.80/lb Cu, US$2,300/oz Au, US$15.00/lb Co and US$120.00/lb Fe, mining costs of US$2.50/t, processing and G&A costs of US$9.50/t, 90% recovery for Cu, 65% recovery for Au, 80% recovery for Co and 40% recovery for Fe and an average pit slope of 45 degrees. Additional pitshells were built to demonstrate sensitivity to copper and iron prices using all the same inputs with three different Cu and Fe prices: Cu$3.80/lb and Fe$100/lb, Cu$4.30 and Fe$120/lb, Cu$5.30/lb and Fe$130/lb.
2. CuEq values are based on copper, gold, cobalt and iron values using metal prices of US$4.10/lb Cu, US$2,500/oz Au, US$15/lb Co and US$105/lb Fe and metallurgical recovery values of 90% for Cu, 65% for Au, 80% for Co and 40% for Fe.  The resulting formula is CuEq=Cu%+(Aug/t *0.705)+(Co%*3.252)+(Fe%*0.008), The cut-off grade for reporting the mineral resources within the pitshell is 0.30% CuEq using total costs of US$18/t.
3. The block model was classed into Inferred Mineral Resources for blocks with two drillholes within 400 m.
4. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
5. Mineral resources in the Inferred category have a lower level of confidence than that applied to Indicated mineral resources, and, although there is sufficient evidence to imply geologic grade and continuity, these characteristics cannot be verified based on the current data. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.

The sensitivity of the in-situ mineral resources to varying copper and iron prices is demonstrated by listing mineral resources contained within pit shells generated at each defined metal price, and at variable cut-off grades. The results are summarized in Table 2.

Table 2. Sensitivity of Mineral Resources 

Notes to Table 2:

1. The estimates in this table are constrained within individual pit shells generated using the variable copper and iron metal prices and fixed gold (US$2,300/oz) and cobalt (US$15/lb).
2. Copper and iron grades used were:

Cu $3.80 Pitshell  US$3.80/lb Cu and US$100/lb Fe

Cu $4.30 Pitshell  US$4.30/lb Cu and US$110/lb Fe

Cu $4.80 Pitshell  US$4.80/lb Cu and US$120/lb Fe

Cu $5.30 Pitshell  US$5.30/lb Cu and US$130/lb Fe

3. Pitshell generation used mining costs of US$2.50/t, processing and G&A costs of US$9.50/t, 90% recovery for Cu, 65% recovery for Au, 80% recovery for Co and 40% recovery for Fe and an average pit slope of 45 degrees.

The effective date of the Mineral Resource estimate is January 24, 2025. Supporting information for the Mineral Resource estimate will be detailed in an independent technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects which will be filed on SEDAR+ under the Company’s profile within 45 days of the date of this news release.

Approach to Estimation of the Mineral Resources at San Pietro’s Rincones and Colla Deposits

The database comprises a total of 39 drill holes for 12,532 metres of drilling completed by Golden Arrow between 2023 and 2024 and 47 drill holes for 20,200 metres of drilling completed by previous operators (2008 to 2011) for a total of 83 drill holes for 32,733 metres.

The mineral resource estimate was restricted within an indicator shell built using ordinary kriging to estimate the probability the CuEq grade item exceeded 0.10 % CuEq.  Copper, gold, cobalt, iron, molybdenum and silver composited data were estimated into 20m x 20mx 10m blocks within the indicator shell using 1.0 metre composites with the search domain restricted for high grade samples.  To generate grade within the blocks, the ordinary kriging interpolation method was used with variograms for each metal along with inverse distance and nearest neighbour methods.

An average density value of 2.94 t/m³ was assigned to the block model based on 10,100 density determinations in drillhole intersections within the indicator shell.

High-grade composite values were restricted using an outlier strategy for Cu at 4.0%, Au at 1.2 g/t, Ag at 6.3 g/t, and Mo at 3500 ppm.  No restrictions were necessary for the Fe% or Co values.

Cautionary Statement Regarding Mineral Resources

The mineral resources disclosed in this press release conform to NI 43-101 standards and guidelines and were prepared by independent qualified persons. The above-mentioned mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological data is sufficient to imply but not verify geological grade and/or quality of continuity. An Inferred Mineral Resource has a lower level of confidence relative to a Measured or Indicated Mineral Resource and constitutes an insufficient level of confidence to allow conversion to a Mineral Reserve. It is reasonably expected, but not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resources with additional drilling. The National Instrument 43-101 Technical Report supporting the mineral resources for the San Pietro Project contained in this news release, will be filed on SEDAR+ by Golden Arrow within 45 days of the date of this news release.

Opportunities

Categories and Grades
The current MRE relied on a drilling density of approximately 200 metre hole spacing.  Infill drilling will provide more detail on the geology and mineralization of the deposits, upgrading portions of the resource to the Indicated or Measured category. Furthermore, tighter spaced drilling will provide more detail resulting in better delineation of the higher-grade mineralogy that has been encountered in various drill holes, including massive sulphide-copper, thick mantos of magnetite (magnetic iron oxide), and cobalt-rich zones.

Metal Recoveries
For the purposes of this Inferred resource the Company did not undertake a metallurgical testing program, instead relying on information from nearby deposits with similar geology, in order to estimate recoveries. Future metallurgical work is expected to provide better information specific to the Rincones and Colla deposits and improve upon the reported metals in the MRE, including:

• Davis Tube testing for the determination of recoverable magnetic iron. Magnetic susceptibility testing estimates the amount of magnetic iron in drill core, while the more involved Davis tube metallurgical testing method estimates the recovery of magnetic iron.  For the purposes of completing an Inferred resource, the Company completed magnetic susceptibility measurements for all samples included in the resource estimate as well as limited Davis Tube tests and correlated the two methods via algorithm to estimate recoverable magnetic iron.  While this procedure is sometimes used at peer deposits, upon advice of the QP’s and other third-party experts on iron ore, the Company chose not to rely on the magnetic susceptibility measurements and the resulting correlation for the resource estimate and plans to complete the industry standard Davis Tube tests in order to report recoverable iron in future mineral resource estimates and studies.
• Sulphide-oxide metallurgy. Oxide minerals dominate some upper sections of the deposits and assay work to determine the quantity of oxide versus sulphide hosted copper, gold and cobalt could prove valuable.  This will also include several other targets within the project area known to contain near surface oxide.

Resource Expansion
The Rincones deposit remains open for expansion in several directions, and the Colla area has seen very limited drilling.  Of immediate interest is the remaining ~500 metre gap between Rincones and Colla where no drilling has taken place.  This gap narrowed with the drilling of several large step-out holes at the end of the Phase 2 program, which continued to intersect wide intervals of mineralization. This includes SP-DDH-29 – a 400 metre step out from Rincones in the direction of Colla that reported 310m averaging 0.19% Cu (see news release dated October 31, 2024.)

Additional Resources
The Company has identified no less than five other drill-ready targets with the potential for resources at San Pietro. Three of these (Radiss N, Rodeo, Mariposa) have seen reconnaissance drilling which support continued work (see June 27, 2023 news release for example).   Two of the targets (Noemi, Lolita N) were new in 2024 and have seen no drilling at all; final compilation of the recent program results will be completed in the coming weeks. These five targets are spread throughout the 20,000 hectare property area, but approximately 50% of the property has seen very limited exploration and sampling.

Qualified Persons and QA/QC

The Mineral Resource Estimate and technical data in this news release were prepared under the direction of Susan Lomas, P.Geo., of Lions Gate Geological Consulting Inc. and Bruce Davis Ph.D., F.AusIMM, Consultant. Both Ms. Lomas and Dr. Davis are independent Qualified Persons as defined in NI 43-101. The QP’s have reviewed and approved the technical content of this news release.

Dr. Davis reviewed drill sample collection, handling, and security practices for all drill campaigns. All conform to industry best practice. QA/QC samples, standard reference material, blanks, and coarse reject duplicates, were also inserted into the assay streams of each of the drill campaigns. Results were reviewed by the QP. QC failure rates were acceptably low (less than 5%), and it is the opinion of the QP assays are sufficiently well controlled to be used in the estimation of Inferred Resources.

Brian McEwen, P.Geol. VP Exploration and Development to the Company and a Qualified Person as defined in National Instrument 43-101 has reviewed and approved the contents of the news release.

About the San Pietro IOCG Project

The San Pietro Project covers approximately 20,000 hectares, 100 kilometres north of Copiapo within an active, well-developed mining region that is home to all the major iron oxide-copper-gold deposits in Chile.  San Pietro is centrally located in a potential new IOCG+Co district, between and adjacent to Capstone Copper’s Mantoverde copper mine property and Santo Domingo copper-iron project, as well as other IOCG exploration and development properties.

The Project is hosted by andesite units in a Cretaceous-aged volcano-sedimentary sequence associated with intrusive rocks including granodiorites and diorites of similar age. The Project is located east of the Atacama Fault system, a major north-south regional structure, which was instrumental in controlling the emplacement of the ore deposits in the area.

Mineralization at San Pietro is typical of an IOCG system, with the addition of cobalt, and occurs in mantos, breccias and veins within a zone of alteration characterized by an association of actinolite, epidote, chlorite and scapolite. The mantos are replacement of andesite by magnetite and sulphides, with a roughly southeast strike and a gentle dip to the SW. Breccias and veins crosscut the mantos, are often subvertical, and filled with specularite and sulphides.

About Golden Arrow:

Golden Arrow Resources Corporation is a mining exploration company with a successful track record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits.

Golden Arrow is actively exploring its flagship property, the advanced San Pietro iron oxide-copper-gold-cobalt project in Chile, and a portfolio that includes nearly 125,000 hectares of prospective properties in Argentina.

The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.