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Golden Arrow Resources Corporation - Corporate Presentation


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Golden Arrow is a Vancouver-based explorer and prospect generator focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class …

Golden Arrow is a Vancouver-based explorer and prospect generator focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery.

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  • 1. May 2013GROSSO GROUP MEMBER COMPANYChinchillas: A Deposit for the Times
  • 2. 2DisclaimerForward-Looking StatementsThis presentation contains forward-looking statements, including but not limited tocomments regarding predictions and projections. Forward-looking statements addressfuture events and conditions and therefore involve known and unknown risks anduncertainties. You can identify these statements by forward-looking words such as"believes", "expects", "plans", "projects", "estimates" and other words of similar meaning.They can also be identified by the fact that they do not relate strictly to historical orcurrent facts. Many factors can cause actual results to differ from these forward-lookingstatements, including inaccurate assumptions and a broad variety of other risks anduncertainties, including some that are known and some that are not. The known risks arediscussed in greater detail in the Company’s prospectus under the heading "Risk Factors"and in our Management Information Circulars which are filed on SEDAR( and with the British Columbia, Alberta and Ontario SecuritiesCommissions. No forward-looking statement can be guaranteed and actual results maydiffer materially from those currently anticipated in such statements. We do not assumethe obligation to update any forward-looking statement.Cautionary Note to U.S. InvestorsThe United States Securities and Exchange Commission ("SEC") permits mining companies,in their filings with the SEC, to disclose only those mineral deposits that a company caneconomically and legally extract or produce. We use certain terms in this presentation,such as "mineral resources", "measured", "indicated", and "inferred resources", that theSEC guidelines prohibit being used.The contents of this presentation have been reviewed and approved Mr. Brian McEwen,P.Geol., VP Exploration and Development of the Company and a Qualified Person asdefined in National Instrument 43-101.2GRG.V
  • 3. 3The Grosso Group Advantage Member company of The Grosso Group Pioneers in Argentina since 1993 Multiple discoveries made in multiple provinces Extensive land packages Impeccable corporate citizenship Contemporary mining management policies3GRG.V
  • 4. 44GRG.V1993 20131993 VisionFor MiningArgentine discoveryGrosso Group propertyGrosso Group discovery
  • 5. 5Chinchillas Silver Project Indicated Resource:7.2 Mt @119 g/t Ag, 0.57% Pb, 0.48% Zn(32.6 million ounces Ag Eq) Inferred Resource:21 Mt @ 78 g/t Ag, 0.69% Pb, 0.62% Zn(72.2 million ounces Ag Eq) Metallurgy results : up to 98.7% Ag recovery Great Address: 30km NE of Silver Standard’sPirquitas Mine. 10,500m of drilling in Phase I & II, 13,500m total Drill highlights include 631 g/t Ag, 1.72% Pb,0.93% Zn over 29 m, and 125 g/t Ag over 108 m. Option to earn 100% interest (no royalty)5GRG.V
  • 6. 6Chinchillas Geological Model6GRG.V
  • 7. 7Chinchillas Geology7GRG.V
  • 8. 8Chinchillas: A Deposit for the Times✔ OPEN PIT AMENABLE Lower cost and fast pay back✔ NEAR SURFACE DEPOSIT Low pre-stripping and faster to put into production✔ HIGH GRADE SILVER CORE IN SILVER MANTOS ZONE Faster cash flow potential✔ MULTIPLE FLAT LYING MINERALIZED ZONES Straight-forward mine design equals lower capex✔ SOFT MATERIAL Easier extraction and lower costs✔ QUICK TO MARKET A potential near term start up8GRG.V
  • 9. 9Chinchillas Metallurgy✔ VERY HIGH RECOVERIES OF SILVER, LEAD, & ZINC (first bench scale testing)✔ 98.7% RECOVERY OF AG IN STAGE 1 (rougher flotation) and 90% after STAGE 2(cleaner flotation) Suggests that a high-grade concentrate can be developed✔ STANDARD FLOTATION METHODS USED SUCCESSFULLY Suggests that costs will be predictable and reasonable✔ CHINCHILLAS LIKELY TO PRODUCE 2 SEPARATE SALEABLE CONCENTRATES: SILVER-LEAD, AND ZINC9GRG.V
  • 10. 10 GOOD EXISTING INFRASTRUCTURE meansfaster timeline to production✔ Close to Highway✔ Power Lines 30 km away✔ Close to gas line✔ Access to water LOGISTICS AND SERVICES makes operatingeasier.✔ Communications available JURISDICTION BENEFITS✔ Other existing precious/metal miningoperations✔ Recent extraction project permittingmeans faster time to development10GRG.VChinchillas Infrastructure
  • 11. Growth StrategyGrow Chinchillas Infill drilling to upgrade resources Step-out drilling to expandresources Deep drilling to expandresources in basementStrategic acquisitions Acquire other silver projectswithin district11GRG.VA Regional Silver Play in the Making
  • 12. 12Capital Structure12Shares Issued 41,823,655Warrants 0Options (avg price = $0.36) 4,000,000Fully Diluted 47,323,655Market Capitalization $10,874,150Cash and cash equivalent +$10,000,000Ownership (insiders/friends/family) 52%As of May 16, 2013GRG.VNo prior financing overhang
  • 13. 1313GRG.VRecent Transactions: Coeur d’Alene paid $1.78 per ounce for Mirasol’s30 million ounce silver project in Argentina in December 2012Valuation of In Situ Silver*Canaccord Junior Mining Weekly May 7, 2013Peer Market Cap Per Ounce of Silver*Mean (Less outliers, US$) AgGolden Arrow$0.10
  • 14. 14A VisionaryMr. Joseph Grosso is a respected entrepreneur with extensive international businessexperience having operated for decades in North/South America as well as in variousEuropean and Asian countries. Of Italian descent and fluent in Italian, English andSpanish, Mr. Grosso lived in Argentina and Peru where he acquired a very deepappreciation for Latin culture and successfully developed a vast network of contactswhich have been very beneficial to the associated companies of the Grosso Group.Mr. Grosso has developed a strong network of long-term national and internationalfinancial relationships. He has experience in financing, marketing strategies and hassuccessfully formed strategic alliances and negotiated with mining industry majorssuch as Barrick, Teck, Newmont, Yamana Gold and Vale S.A.During a family visit to Argentina in 1993, Argentina’s undeveloped geology east ofChile was the great motivator for Mr. Grosso’s career change into the mining industrywhere he became a mining pioneer in Argentina and thereafter discovered theworld-class Gualcamayo project, now in production by Yamana Gold. Mr. Grosso’sadditional discoveries include the world-class Navidad silver deposit now held by PanAmerican Silver; the Rio Tabaconas gold project and now he is on the trail of yetanother discovery with the Chinchillas silver project.Led 3 major discoveries: Navidad (Pan American Silver) Gualcamayo (Yamana) Chinchillas (Golden Arrow)14GRG.VJOSEPH GROSSOExecutive ChairmanCEO and President
  • 15. Key Management15GRG.VBRIAN McEWEN PGeol. - VP Exploration & DevelopmentMr. McEwen is a professional geologist with more than 30 years of exploration and production experience in open-pit and underground mining projects and operations. The extent of his experience is global in managing numerousprojects in Canada, US, Europe, Asia, Africa and throughout Latin America. Mr. McEwen’s previous roles includemore than a decade with MRDI (AMEC Peru) where he was responsible for project management, economicresource and reserve calculations for various precious and base metal companies worldwide, including BHPBilliton, CM Antamina, Teck, Hochschild and Phelps Dodge among others.BRUCE SMITH MSc, MEng, AUSIMM – Argentina Exploration ManagerPart of the team that discovered the AngloGold Ashantis Siguiri Gold Mine, in Guinea and the Castle Gold Corp’sEL Sastre Gold Mine, in Guatemala, Mr. Smith has spent over 18 years exploring for metals in Australia, NewZealand, Philippines, West Africa, and Europe including 9 years working in the Americas. He manages theexploration office in Argentina, and has a BSc and MSc Geology from Otago, New Zealand, and his MEng inWater and Environmental Resource Management, from Delft Netherlands.MICHAEL E. IANNACONE, CA – CFO & Corporate SecretaryMr. Iannacone received his Bachelor of Commerce degree (Accounting Major) from the University of BritishColumbia in 1978. Upon graduation he joined Coopers and Lybrand, Chartered Accountants (since merged intoPricewaterhouseCoopers) where he completed his articles and obtained his Chartered Accountant designation in1980. Mr. Iannacone completed five years with Coopers and Lybrand, working in audit related functions, withprimary focus on natural resources and precious metals sector. Since leaving public practice Mr. Iannacone hasworked in various operational and finance related positions for companies (both public and private) in suchindustries as software development, mineral resource development, mineral resource/precious metals production,industrial valve application and marine transportation.
  • 16. 16Mandate to Deliver ValuePRIORITY #1: Achieve Value for Chinchillas Silver Deposit Chinchillas is still an unknown and its’ value is not being reflected in its’ share price. Marketing programs have commenced in order to target: ANALYST COMMUNITY – a technical presentation has been created and will bemarketed via our technical team beginning May 13th, 2013. Use as springboardto enter the institutional market. BROKER NETWORK – broker meetings have commenced in Vancouver, Calgary,Toronto and some small communities in Midwest USA. RETAIL AUDIENCE – four initiatives underway.1) Social Media channels have been created.2) Engaged the influential newsletter community.3) Attending tradeshows and presenting situation.4) Traditional investor relations functions.16GRG.V
  • 17. 17A Timely Opportunity✔ RARE OPPORTUNITY – current market weakness has created an opportunity tobuy into Chinchillas for free (net of cash position).✔ LOW RISK – by calculating cash as a percentage of market cap, Golden Arrowis among the best financed juniors on the TSX venture market.✔ FAST TRACK TO PRODUCTION – Chinchillas is a “deposit for the times” due to itsseveral advantages as a near term production candidate.✔ ANOTHER GROSSO GROUP DISCOVERY - investors get: Comfort of 20 years operating experience in Argentina. To invest alongside management & insiders who own 52%. To participate with a seasoned team with 3 discoveries in the past.✔ RELATIVE VALUE ANOMALY – Vis-à-vis its peers, GRG is massively discounted andusing recent transactions as a benchmark.17GRG.V
  • 18. 18Corporate Head-Office:Suite 709, 837 W Hastings STVancouver, BC, Canada V6C 3N6Telephone: 604 687 1828Toll free: 1 800 901 0058Sean Hurd, VP Corporate Communications, Grosso GrouporPaul Guedes, Director of Corporate Communicationsinfo@goldenarrowresources.comContactwww.goldenarrowresources.comTSX.V: GRG; Frankfurt: GAC18GRG.V
  • 19. 19APPENDIX A19GRG.VSee August 3rd, 2011 Press Release for further detailsTiming Cash Payments($US)On Signing $20,000By January 2012* $80.000By July 2012 $150,000By July 2013 $250,000By July 2014 $400,000By July 2015 $900,000Total $1,800,000Golden Arrow may acquire a 100% interest in the Chinchillas project by makingthe cash payments to the vendor laid out in the table below:PAIDPAIDFurthermore the Company must make an additional payment of $1.2 millionto the vendor upon the commencement of commercial productionPAIDChinchillas Option Terms
  • 20. 20APPENDIX B: Resource20GRG.VMineral Resource Statement for the Chinchillas Project, May 2013 by Kyle Howie, MAIG and Bruce Davis, FAusIMMResourceClass/Zone TonnageAgGradePbGradeZnGradeAg EqGrade Ag Pb Zn Total(Mt) (g/t) (%) (%) (g/t) (Moz) (Mlbs)Ag Eq(MOz)(Mlbs)Ag Eq(MOz)Ag Eq(MOz)Indicated ResourcesSilver Mantos 7.2 118.6 0.57 0.48 141.2 27.4 90.2 2.8 76.0 2.4 32.6TotalIndicatedResources7.2 118.6 0.57 0.48 141.2 27.4 90.2 2.8 76.0 2.4 32.6Inferred ResourcesSilver Mantos 3.3 90.7 0.51 0.43 111.0 9.7 37.5 1.2 31.6 1.0 11.9Mantos Contact 2.5 78.7 0.71 0.88 113.1 6.3 39.0 1.2 48.4 1.5 9.1Mantos Basement 8.4 99.5 0.85 0.24 123.0 26.8 157.3 5.0 44.4 1.4 33.2Socavon delDiablo6.8 46.6 0.58 1.1 82.8 10.2 86.7 2.7 164.5 5.2 18.1Total InferredResources21.0 78.5 0.69 0.62 107.0 53.0 320.5 10.1 288.9 9.1 72.21. Resources in Table 1 are reported at 50g/t Ag equivalent (Ag Eq) cut-off, at $27/oz Ag, $0.85/lb Zn and $0.85/lb Pb at 100% recovery.2. Silver equivalent calculations were used because of the contribution to revenue that Pb and Zn add to the deposit, especially in thezinc rich Socavon del Diablo Zone3. Golden Arrow has not completed an economic evaluation to calculate the cut-off grade. A cut-off grade of 50 g/t Ag Eq is used forreporting purposes as 50 g/t Ag is utilized by Silver Standard at their Pirquitas Mining operation located 30kms from Chinchillas.4. Totals may not add correctly due to rounding5. Resources are classified according to their proximity to sample data locations and are reported, as required under NI 43-101, accordingto the CIM Definition Standards for Mineral Resources and Mineral Reserves. Mineral resources, which are not mineral reserves, do nothave demonstrated economic viability. The quantity and grade of reported Inferred resources are uncertain in nature and there hasbeen insufficient exploration to classify these inferred resources as Indicated or Measured, and it is uncertain if further exploration willresult in upgrading them to an Indicated or Measured category.
  • 21. 2121GRG.VJoseph Grosso is a respected entrepreneur withextensive international business experience havingoperated for decades in North/South America as wellas in various European and Asian countries.Mr. Grosso visited family in Argentina in 1993 andcoincidentally met a pre-eminent geologist andprofessor at the University of Buenos Aires whointroduced him to the potential of discovering miningdeposits in Argentina. This encounter together withArgentina’s undeveloped geology east of Chile wasthe great motivator for Mr. Grosso’s career changeinto the mining industry where he became a miningpioneer forming the Grosso Group and establishingMinas Argentina S.A. (MASA) and thereafterdiscovering the world-class Gualcamayo project.The trail of discoveries continues with GRG’s newflagship Chinchillas Project which has the promise of avery large deposit in the making and is located in theprovince of Jujuy, Argentina within the well-knownBolivian/Silver/Zinc belt that extends into Argentina.1993 ArgentinaA vision for a Mining Destination
  • 22. 2222GRG.VOur confidence in Argentina as a mining destination remains strongwith the Company’s management team having successfullyoperated there since 1993 with an affinity for the culture, managingrisks and creating positive economies in remote regions. The GrossoGroup member companies have the advantage today of holdingapproximately 900,000 hectares of properties (approximately2,200,000 acres).Argentina has: Sprawling discoveries and promising geology 145 mining companies operating in Argentina among them keyindustry leaders who continue advancing world-class projects Investment growth up to 72% in 2012 Superior infrastructure compared to other South Americancountries with an educated and skilled labour force A liberal Mining Code and one of the lowest property holdingfees in South America Stable government / regulatory systems throughout the country Improved in ranking by 11 points as evidenced in the FraserInstitute Mining Survey of 2012 which ranked Argentina as thesecond best mining destination after Chile in South America. New Chinchillas silver discovery in Jujuy Province.Why ArgentinaArgentine discoveryGrosso Group propertyGrosso Group discovery
  • 23. 23APPENDIX C23GRG.VKey Industry Players in ArgentinaAnglo American PLCAnglogold AshantiAREVA Resources Canada Inc.Argentex Mining CorporationBarrick GoldBHP Billiton LimitedBuenaventuraCoeur D’Alene Mines Corp.FMC LithiumGlencore Internacional AGGold Fields Ltd.Goldrock Mines Corp.Goldcorp Inc.Hochschild Mining PLCIAM Gold CorporationInternational Lithium Corp.Lumina Copper Corp.Marifil Mines Ltd.McEwen Mining Inc.Metallurgical Corporation of China Ltd. (MCC)Minera IRLMirasol Resources Ltd.NewmontNGEx Resources Inc.NovaGold Resources Inc.Orocobre Ltd.Pan American GoldfieldsPan American Silver Corp.Patagonia Gold PLCSilver Standard Resources Inc.Silver Wheaton Corp.Stillwater Mining CompanySumitomo Metal Mining C.O. Ltd.Teck Resources LimitedTNR Gold Corp.ValeXstrata CopperYamana Gold Inc.
  • 24. 24APPENDIX D24GRG.V