After digesting drill results from Golden Arrow Resources (GRG-V) Poncha gold project the market took an unfavourable stance towards the Vancouver-based company.
A day after results from four holes in the South zone of the project were announced, the company watched as its shares fell 43% or 25¢ to 33¢ on 1.8 million shares traded.
The fall came despite all four holes in the program intersecting gold mineralization in multiple intervals.
Assays were highlighted by 6 metres grading 1.16 grams gold, 7.6 grams silver and 0.29% zinc and 42 metres in a separate hole grading 0.37 grams gold, 3.9 grams silver and 0.09% zinc.
Such results weren’t nearly enough, however, to re-ignite enthusiasm for the South zone which initially opened eyes back in March of last year when a single hole returned 266 metres grading 1.2 grams gold.
The most recent holes were drilled on 50 metre step-outs, vertically below and along strike from last year’s hole and in two directions.
Their failure to strike similar grades means the potential size and extent of the deposit is likely limited.
The company describes the area as an epithermal precious-base metal anomaly. The project lies in the San Juan Province of Argentina.
Golden Arrow can earn up to a 100% interest in the Poncha project from Teck Resources (TCK.A, TCK.B-T) by spending US$3.2 million over three years, starting in 2007. Golden Arrow also agreed to pay US$2.88 million to the original property owner over three years.
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