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

Golden Arrow Resources' (TSX-V: GRG) chief says Silver Standard combination marks step change for firm

Golden Arrow Resources Corp (CVE:GRG) chief Joseph Grosso has lauded his firm's Argentinian joint venture with Silver Standard Resources (TSE:SSO), saying it's a "classic win-win" with benefits to both parties.

"In one transaction, Golden Arrow has leapfrogged into producer status overnight and secured itself a substantial part of the residual production value (and immediate share of the revenues) at Pirquitas and brought much closer the pipeline value of Chinchillas, which would otherwise have been a long and expensive slog to production," he said in a letter to shareholders.

Eighth largest silver mine....

The combination creates the eighth largest silver mine in the world with an 8-year mine life and output of 8.4 million silver equivalent ounces per year.

Golden Arrow might have been looking at years of financing and development to get its Chinchillas silver, lead , zinc site into production and throwing off cash, said Grosso.

But with the combination of Silver Standard's Pirquitas' mine, this has been short-circuited, he suggested.

Golden Arrow shall have an immediate share of Pirquitas revenues, much lower capex requirements and, hopefully, first production from Chinchillas in the second half of 2018, he said.

On Friday, it was confirmed that the combination would go ahead.