Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Golden Arrow Resources targeting mining riches in Argentina

Golden Arrow Resources targeting mining riches in Argentina

A big driver of growth was progress at the firm's Chinchillas Silver deposit in Jujuy province

Argentina-focused Golden Arrow Resources Corp (CVE:GRG) had much to celebrate in 2016 and the progress looks set to continue this year.

Shares in the metals explorer surged as much as 600% in the year and its market cap expanded to around $75mln from around $13mln at the start of 2016.

Chinchillas was a big growth driver

A big driver of growth was progress at the firm's Chinchillas Silver deposit in Jujuy province, which it is steadily advancing towards production.

Pre-development has been funded by fellow mining group Silver Standard Resources Inc, with which it is a strategic partner to consider creating a combined mining firm with  Silver Standard's Pirquitas mine - just 35 km from Chinchilla.

Golden Arrow would be a 25% owner.

Chinchillas hosts a resource of 100 million ounces of silver in the higher confidence measured and  indicated categories and 44 million ounces silver /90 million ounces of silver equivalent in inferred.

Two drills have been working to complete detailed geomechanical and hydrogeological programs in and around the designed open pit.

In September, the firm posted drilling results from a phase VI programme, which  included grades between 23 and 367 grams per tonne silver as well as lead and zinc. The programme consisted of 21 holes and there is potential to expand the current resource.

2016 saw extensive work

Just before the Christmas break the firm outlined the extensive work last year: "As of the end of September, 2016, Silver Standard has invested around $11mln to advance the project toward prefeasibility.

"In 2016, work completed included a phase VI drill program, an upgraded resource estimate, metallurgical studies, engineering studies, environmental monitoring and community relations programs. the environmental report, which is the major mine permit application, was submitted to the authorities in September."

Next on then cards for Chinchillas would be a development decision.

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