-- Published: Tuesday, 13 March 2018 | Print | Disqus
Sampling at Golden Arrow Resources Corp.’s Antofalla silver-gold property in northwest Argentina’s Catamarca province. Photo Credit: Golden Arrow Resources Corp.
Golden Arrow Resources Corp. (TSXV: GRG) — a member of the Grosso Group of companies — is placing its precious and base metal exploration assets in Argentina into a new, 100%-owned subsidiary called New Golden Exploration, now that its more advanced Chinchillas silver project headed towards production under a new joint venture agreement with SSR Mining Inc. (TSX: SSRM; NASDAQ: SSRM).
Chinchillas is located in Argentina’s northwesternmost Jujuy province. The project contains 11.7 million proven and probable tonnes grading 154 grams silver per tonne, 1.2% lead and 0.49% zinc for 58 million oz. silver, 310 million lb. lead and 127 million lb. zinc.
Early this decade, Golden Arrow knew it had a strong project but would need to raise a lot of capital to bring it into production. Then, in 2011, SSR (named Silver Standard Resources at the time) found that its Pirquitas silver mine’s reserves were 52% lower than expected. By 2014 the mine had only four years of reserves left.
Golden Arrow Resources Corp. President and CEO Joe Grosso
“I was sitting and reading that they were shutting down,” Golden Arrow President and CEO Joe Grosso recalls in an interview. “We found out that as the crow flies we were 20-30 km away, which in the mining business is nothing — it’s next door.
“I call it the celestial synergy that pushed us together: They had exactly what we needed, and we had exactly what they needed.”
By 2016, SSR was saying that mining Chinchillas as a satellite deposit was its last chance to extend Pirquitas’ mine life.
But the joint venture at Chinchillas between the two companies took two years to consummate. It resulted in Golden Arrow taking a 25% stake in the joint venture company Puna Operations, with SSR owning the remainder and serving as operator.
In essence, the project uses existing SSR infrastructure to fast track Chinchillas into production, with Golden Arrow expecting Puna will start processing Chinchillas ore by the second half of 2018.
“On one side we’ll produce and get cash from production for the next 8-10 years, and on the other side we’re going to continue our very popular and well known exploration program,” Grosso says.
New Golden is now focused on its Antofalla silver-gold property in Catamarca province of northwest Argentina. It’s currently outlining targets, carrying out geophysical surveying and trenching.
It’s also setting up a camp for drillers, who will kick off an inaugural, 3,000-metre drill campaign in mid-March. Past owners had completed some drilling, but on a different part of the property.
Brian McEwen, Golden Arrow Resources Corp.’s Vice-President of Exploration and Development
Brian McEwen, Golden Arrow’s Vice-President of Exploration and Development, says that Antofalla is quite similar geologically to Chinchillas. The 88 sq. km property features a 4 km by 5 km zone of hydrothermal alteration with an intense argillic signature.
The company is also working on the $1 million exploration program at its Pescado gold property, first announced in November 2017. The program is to include 1,800 metres of drilling, though Golden Arrow says that, for now, Antofalla is its priority.
“In Antofalla we have a lot of work to do before we lose our season,” says McEwen. “We want to get the drilling done by the end of May, so we’ve got a full court press on Antofalla right now. But Pescada’s out there — we’re not done with it yet.”
Pescado is in mining-friendly San Juan province, and the 200 sq. km property is accessible year round. It is just 10 km south of Yamana Gold’s (TSX: YRI; NYSE: AUY) Gualcamayo gold mine which contains 2.8 million measured and indicated oz. of gold and produced 160,000 oz. of gold in 2016.
So far, Golden Arrow has built a road into Pescado, dug trenches and taken samples.
Location map of Golden Arrow Resources Corp.’s mineral properties in Argentina. Map Credit: Golden Arrow Resources Corp.
The property is one of many that Golden Arrow has in San Juan along with two others in nearby La Rioja province. Still, the company is always trying to expand its portfolio.
“We’re always on the hunt for new projects,” says McEwen. “A lot of opportunities have come up with the new government.”
Argentina’s voters elected Mauricio Macri as president of Argentina in 2015. Grosso praises Macri’s government as very pro-mining in comparison with previous Argentinian governments.
“On the exploration side there’s a lot of good opportunities,” adds McEwen. “There are also near-term production opportunities for Golden Arrow to help bolster up the cash flow, so we’re looking at a lot of projects and lot of properties. It’s a very busy time.”
Shares of Golden Arrow are currently valued at 63¢ with 52-week range of 37¢ to 74¢. The company has a market capitalization of $63 million.
— The preceding Joint Venture Article is promoted content sponsored by Golden Arrow Resources Corp. and written in conjunction with The Northern Miner. Visit www.goldenarrowresources.com to learn more.
http://www.northernminer.com/joint-venture-article/jv-article-golden-arrow-redoubles-exploration-efforts-argentina/1003794488/
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-- Published: Tuesday, 13 March 2018 | E-Mail | Print | Source: GoldSeek.com
