Golden Arrow raises C$44m via sale and buys into a potentially large gold project in Paraguay…
Golden Arrow Resources Corporation (TSXV: GRG | OTCQB: GARWF) is a Canadian explorer/developer with a pipeline of ~200,000 hectares of high quality mineral projects at all stages of exploration, with exposure to Argentina, Chile and Paraguay. As a member of The Grosso Group, Golden Arrow is an explorer with a history of success in identifying, acquiring and advancing precious and base metal discoveries. The main targets on their properties include gold, silver and base metals.
Golden Arrow’s Argentina properties (blue circles)
Golden Arrow sells their 25% interest in the Puna Operations to SSR Mining Inc. (SSRM)
In a recent special shareholders meeting Golden Arrow has reported that its shareholders have approved, by a sweeping majority, the proposed special resolution regarding the sale of the Company’s 25% interest in Puna Operations Inc. to its joint venture partner SSR Mining Inc. for an aggregate consideration of C$44.4 million. The funds will be used to pay off debt to SSRM (C$14.5 million) and also will result in Golden Arrow owning C$25.9 million in common shares of SSRM.
This means Golden Arrow will still participate as a shareholder in SSRM’s success. The Puna Operations alone have 51.7 Moz of silver reserves and a 118.7 Moz silver resource (M&I) and are currently in production with an 8 year mine life. SSRM’s 3 precious metal mines combined produced over 345,000 AuEq ounces in 2018 @ $736/oz cash costs.
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Joseph Grosso, President, CEO and Executive Chairman stated: “I would like to thank our shareholders for their overwhelming endorsement for this transaction.”
Golden Arrow’s Chile Projects
- Indiana Gold-Copper Project – An historic NI 43-101 inferred mineral resource estimate of over 600,000 ounces of gold equivalent (including 3,093,700 tonnes averaging 2.8 g/t gold and 1.6% copper.
- Atlantida Gold-Copper Project – An historic mineral resource estimate of 427 million tonnes averaging 0.43% copper equivalent.
Golden Arrow recently announced the completion of its first surface trench sampling program at the Atlantida Gold-Copper Project in Chile. Results are outlining a target area of approximately 1 km by 250 meters, where trenching has returned samples with significant intervals of gold which could be amenable to heap leach recovery methods. The Company has now initiated an accelerated drilling program to further investigate the prospect for a significant deposit in this area. Golden Arrow is earning a 100% interest in the 3,450 hectare Atlantida Project. The Project is road-accessible with an abundance of both outcrop and old workings. A total of 662 samples were collected from a combination of nine new and three historic trenches. The program focused on an area where historic copper-gold porphyry resource estimate was delineated.
Trench sampling highlights include:
- 216 meters averaging 0.25 g/t Au in trench 2, including 48 m averaging 0.53 g/t Au.
- 74 meters averaging 0.66 g/t in trench 7.
- 52 meters averaging 0.34 g/t Au and 10 m averaging 0.96 g/t Au in trench 5.
- 20 meters averaging 0.72 g/t Au in trench 4.
Golden Arrow’s VP of exploration and development said: “This trenching program supports our belief in the potential to expand the known area of near-surface gold mineralization adjacent to the copper-gold porphyry deposit at depth.”
Golden Arrow’s new Paraguay Project
The Tierra Dorada Project – A district-scale high-grade gold project covering an area of 640 km2 (63,854 ha). Multiple gold targets already defined. Rock chip assays range from 3.3 g/t to 15.1 g/t gold collected along a 2.5 km trend of sub-outcropping quartz veins; visible gold locally observed. Six shallow reverse circulation drill holes completed by Yamana Gold Inc. in 1996, with reported results including 3 meters averaging 2.87 g/t gold.
Golden Arrow will now focus on making the next discovery from their advanced and prospective projects in Argentina, Chile, and Paraguay. The Company’s past success at mineral discovery, as well as its achievements in community and government relations, has made it a highly regarded and trusted explorer.
By investing in Golden Arrow Resources investors gain exposure to a successful project generator with exploration potential over a massive ~200,000+ hectares encompassing several high quality mineral projects in Argentina, Chile, and Paraguay. You also get equity exposure to precious metals producer SSR Mining Inc.
Golden Arrow Resources Corporation is headquartered in Vancouver BC; and has a market cap of C$19.2 million.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>