Golden Arrow Resources reports major copper-gold discovery at San Pietro Project

Golden Arrow Resources Corporation has announced its initial mineral resource estimate for the San Pietro Project, a copper-gold-iron-cobalt deposit located in Chile. This latest assessment highlights the project’s potential as a significant mineral asset, with an inferred resource of 492 million tonnes, averaging 0.23% copper, 0.05 grams per tonne gold, 14.43% iron, and 99 parts per million cobalt. This equates to an estimated 2.5 billion pounds of copper and 770,000 ounces of gold, underscoring the project’s potential as a valuable resource in Chile’s renowned mining sector.

The findings are based on a pit-constrained mineral resource estimate supported by 32,733 metres of drilling, with most of the work concentrated on the Rincones target. Contributions from the nearby Colla target, known for its high cobalt and iron content, have also played a role in shaping the current resource estimate. The discovery positions Golden Arrow Resources as a key player in the development of new copper-gold deposits in Chile, a country recognized as one of the world’s top copper producers.

How does this mineral resource estimate impact the future of the San Pietro Project?

Golden Arrow Resources’ Vice President of Exploration and Development, Brian McEwen, described the findings as a major milestone in the company’s strategy to build long-term value. The company acquired the San Pietro Project for $3.35 million USD, and within three years, it has established a resource estimate that could rival some of the region’s established deposits.

McEwen noted that the next phase of exploration will focus on delineating higher-grade breccias and mantos within the resource area. This initiative aims to upgrade portions of the inferred resource to the measured and indicated categories, strengthening the project’s economic outlook. The company is also planning an extensive metallurgical sampling program to evaluate recoverable magnetic iron and optimize cobalt recovery methods.

Further drilling is anticipated to expand the resource to the south and east of Rincones, following promising results from recent step-out holes. The continued expansion of the San Pietro Project could enhance its overall value, as additional mineralized zones are defined and incorporated into future resource updates.

What economic factors influence the viability of the San Pietro Project?

Golden Arrow Resources’ mineral resource estimate is based on comprehensive economic assumptions, including metal price benchmarks of $4.80 per pound of copper, $2,300 per ounce of gold, $15 per pound of cobalt, and $120 per tonne of iron. The company has applied standard industry recovery rates, assuming 90% for copper, 65% for gold, 80% for cobalt, and 40% for iron. These factors provide a realistic foundation for assessing the project’s future economic viability.

Sensitivity analyses have also been conducted, demonstrating that fluctuations in copper and iron prices could impact the total reported mineral resources. If metal prices remain strong, the company could report additional mineralized material within the existing pit shells, further strengthening the project’s economic potential.

How does the San Pietro Project compare to other mining assets in Chile?

Situated in one of the world’s most prolific mining regions, the San Pietro Project is strategically located between Capstone Copper’s Mantoverde copper mine and the Santo Domingo copper-iron project. This area is known for hosting iron oxide-copper-gold (IOCG) deposits, a geological setting that has produced some of Chile’s largest mineral resources.

The mineralization at San Pietro is consistent with IOCG systems, featuring mantos, breccias, and vein-hosted mineralization. The project’s geological setting suggests that further exploration could identify additional high-grade mineralized zones. The presence of cobalt adds another layer of potential value, given the growing demand for battery metals in the global market.

Golden Arrow Resources has identified a 500-metre gap between Rincones and Colla, where minimal drilling has been conducted. Recent step-out drilling has already intersected long mineralized intervals, reinforcing the expectation that the resource could continue to expand.

What are Golden Arrow Resources’ next steps for project development?

Golden Arrow Resources plans to conduct infill drilling to refine the deposit’s geology and upgrade resource confidence levels. The company is particularly interested in better defining high-grade copper and cobalt zones, which could enhance the project’s attractiveness for future development.

Additionally, metallurgical test work will be expanded to improve estimates of magnetic iron recovery. Initial assessments relied on magnetic susceptibility measurements, but Golden Arrow Resources plans to undertake Davis Tube testing, an industry-standard method for determining recoverable iron content. This process will provide more precise data for future economic assessments.

The company has also identified five additional drill-ready targets within the 20,000-hectare project area. Some of these targets, such as Radiss N, Rodeo, and Mariposa, have undergone reconnaissance drilling, while others, including Noemi and Lolita N, remain untested. Expanding exploration efforts to these targets could further enhance the project’s overall mineral resource base.

What is the market outlook for Golden Arrow Resources?

Golden Arrow Resources is publicly traded on multiple exchanges, including the TSX Venture Exchange (GRG), the Frankfurt Stock Exchange (G6A), and the OTCQB Venture Market (GARWF). The company’s latest discovery could attract interest from investors looking for exposure to copper-gold deposits in Chile, particularly given the growing global demand for critical minerals like copper and cobalt.

Market sentiment surrounding copper has remained strong, as the metal plays a crucial role in renewable energy technologies, electric vehicle production, and infrastructure development. The addition of cobalt further enhances the project’s potential, as the metal is a key component in lithium-ion batteries used in electric vehicles and energy storage systems.

Given its strategic location, exploration success, and increasing resource base, Golden Arrow Resources is positioning itself as a potential acquisition target or joint venture partner for larger mining companies seeking new assets in Chile’s copper-gold deposits sector.

Why is the San Pietro Project a significant discovery?

Golden Arrow Resources’ San Pietro Project represents a promising new copper-gold asset in one of the world’s most prolific mining regions. With 2.5 billion pounds of copper and 770,000 ounces of gold, the company has demonstrated the project’s potential to contribute meaningfully to the copper and cobalt supply chain.

As the company moves forward with additional drilling, metallurgical studies, and resource expansion, the San Pietro Project is well-positioned for future development. With growing investor interest in copper-gold deposits, Golden Arrow Resources could emerge as a key player in Chile’s mining industry, capitalizing on the rising demand for critical minerals worldwide.