Vancouver, B.C. – Sept 27, 2016 – Phillip Thomas, President of Arrowstar Resources Ltd. (“Arrowstar” or the “Company”) (TSX.V: AWS), is pleased to announce that the Company has received the laboratory results on 60 pulp samples taken from reverse circulation drill cuttings in the Tin Cup (“Secret Pass”) concessions, that is located 26 miles north of Kingman, Arizona.

From 1984-1991 a total of 126 drill holes totaling 14,036m were completed on the Tin Cup property.  Pulp samples from five holes were selected and re-assayed for quality control purposes to determine the reliability of the historic drill data and determine if it would be necessary to twin and re-assay the previous drill holes.

The 63 re-assayed pulp samples had a correlation to the original results of more than 90% after outliers were removed. As a result of these positive results it was determined that the drill data from the previous 125 drill holes is reliable within the sampling error range and as such, twinning the drill holes and re-assaying will serve no useful purpose.

The Board has decided to commence preparation for Phase 2 Drilling which will be a 10 hole drill program that has already been permitted for.

Phil Thomas, Arrowstar’s President and Chief Geologist states,We are very pleased to have completed the QA/QC stage of the due diligence process. We anticipate two phases of drilling programs that we expect will allow the Company to define a current resource on the property, allow us to complete a feasibility study and mining implementation plans. The project is well advanced to potentially be fast tracked to production when drilling, resource estimation and project economics is completed.”

Pulp sampling highlights:

  • The original sample analyses produced by Union, CMS and MSRD laboratories in 1985-1988 were correlated 63% without any normalization for sampling error, and were analyzed using ICP by fire assay fusion.  After outliers were removed, the correlation was more than 90%.
  • Thirty three other elements were assayed by aqua regis then ICP with highs of Manganese, and low values (<120ppm) Arsenic, Copper, Platinum, Palladium, Iron and Silver.
  • The sampling was done by Bureau Veritas Commodities Canada Ltd (“Bureau Veritas”), Vancouver, using ICP and fire assay, with preparation of the pulp samples to ensure they were homogenous. The holes sampled were TC1, TC3, TC10, TC30, and TC32.
  • The samples analyzed for Gold were:

Number greater than 11 gms per tonne – 10/63

Number greater than 4 gms per tonne – 21/63

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Four samples were significant outliers to the population in percentage terms, and these were:

Hole Sample depth – feet 1987 Assay gms/tonne 2016 Assay gms/tonne
TC1 70-75 3.068 7.938
TC3 90-95 0.015 0.044
TC30 495-500 0.311 0.696
TC32 60-65 5.16 >11.00

 

Quality Control

The sampling of Secret Pass drill core and reverse circulation cuttings was supervised by Bud Hillemeyer CP, who was responsible for all aspects of the original work.  Phil Thomas MAIG MAIMVA was responsible for identification and packaging of the pulp samples.  The on-site personnel at the project pulled sampled pulps from on-site storage and then security sealed and shipped them to Bureau Veritas Laboratories in Vancouver, British Columbia for analysis.  Bureau Veritas’ quality control system complies with the requirements for the International Standards ISO 9001:2008.  Analytical accuracy and precision were monitored by the analysis of six reagent blanks, four insertions of standard reference material, and six duplicate samples.

 

The Company also announces it has terminated the Investor Relations Agreement with Lawrie Koyle. The Company would like to thank Mr. Koyle for his services to the Company and wish him well in his future endeavors.

Qualified Person

Phillip Thomas, BSc Geol, MBusM, MAIG, MCIM MAIMVA, CMV CIM,  a Qualified Person as defined under NI 43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Thomas is not independent of the Company as he is an Officer and a shareholder.

On Behalf of the Board of Directors,

Arrowstar Resources Ltd.

“Phillip Thomas”

President

Investor Contact:

604-687-7828

phil@arrowstarresources.com

www.arrowstarresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning AWS’s planned exploration programs in North America and other statements that are not historical facts. When used in this document, the words such as “could,” “plan,” “estimate,” “expect,” “intend,” “may,” “potential,” “should,” and similar expressions are forward-looking statements. Although AWS believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading “Risk Factors” and elsewhere in the corporation’s periodic filings with Canadian securities regulators.