Golden Arrow Resources Corp (CVE:GRG) is expanding its footprint into Chile with an agreement to acquire the 3,450 hectare Atlantida copper-gold project.
"Atlantida is an advanced project which combines mineral rights from two separate owners and includes an extensively drilled copper-gold deposit with an historic resource estimate. By consolidating the land package, Golden Arrow believes there is potential to identify new mineralization and define a significant copper-gold resource," the company said in a release on Thursday.
"Expansion into this area of Chile that is host to multiple world-class copper and gold deposits broadens our opportunities to acquire advanced projects like Atlantida, in order to potentially quickly build resources and value for our shareholders," said Joseph Grosso, executive chairman, CEO and president.
"Golden Arrow has built an excellent portfolio of precious and base metal assets in Argentina which we continue to explore."
The Atlantida project comprises two separate land packages that Golden Arrow has consolidated into a single project, through signing two agreements.
The first agreement includes a 48 month earn-in with minimal costs in the first year and total payments of US$4 million. There is a 2% Net Smelter Royalty payable with half available for repurchase under certain terms.
The second agreement includes a 24 month earn-in period for a total of US$2 million and a 1% Net Smelter Royalty that can be repurchased in full under certain terms.
Previous exploration has occurred at Atlantida
Previous exploration has occurred at Atlantida, with one particular resource estimate of 427 million tonnes averaging 0.43% copper equivalent.
The resource includes a deep porphyry copper-gold target and a near-surface skarn with higher gold grades which together cover an area of approximately 225 hectares.
This zone is located on the western edge of the claim hosting the historic resource and extends onto an adjacent claim, which is now under option by Golden Arrow.
Golden Arrow's due diligence surface rock samples in this area returned up to 3.7 g/t gold and 1.98% copper.
The company said it believes there is potential for further discoveries of similar targets elsewhere on the consolidated Atlantida properties.
Shares of Golden Arrow were up 9.3% at C$0.29.5 on Thursday.