EDITOR: | November 23rd, 2017

Grosso’s Fourth Major Discovery?

| November 23, 2017 | No Comments

Earlier this year, Golden Arrow Resources Corporation (TSXV: GRG | OTCQB: GARWF) (“Golden Arrow”) leapt ahead to achieve producer status via a 25-75 joint venture with SSR Mining Inc. (formerly Silver Standard Resources Inc.) (“SSR Mining”). The agreement launched Golden Arrow’s Chinchillas project by utilising the existing plant at SSR Mining’s nearby Pirquitas mine. The deal is expected to give up an average silver equivalent production of 8.4 million ounces per year over eight years at 4,000 tonnes per day. Golden Arrow’s 25% share comes out at 2.1 million ounces of silver equivalent, or US$66.75 million, according to the recently published prefeasibility study.

In fact, as part of the deal, Golden Arrow has already received a payment of C$17.8 million from SSR Mining for 25% of what Pirquitas generated between October 1, 2015 and May 30, 2017, putting the company in a great financial position to fund their 25% share of the projected capital expenditures required to fully develop the Chinchillas project. As well as this, management have stated that they will undertake no further exploration works via Golden Arrow, instead choosing to focus on the acquisition of near-term or producing operations – presumably to grow the precious metals portfolio as safely as possible.

All further exploration works on company properties will be undertaken by a self-funding (equity financing) and entirely owned subsidiary registered as B.A. Exploration Corp. (“BA Exploration”). This subsidiary will be charged with outlining mineral resources on Golden Arrow projects and seeking suitable joint ventures with major mining issuers. The first million seeded to the company appears to have kickstarted an exploration program at the company’s Pescado project in San Juan, Argentina. The Pescado project has the necessary attributes of a significant discovery, including proximity to existing deposits, scale, accessibility, and clear mineralization in a positive geologic setting.

The site hosts two main gold target areas where large intrusive bodies intersect major regional faults. Previous work has identified high grade gold mineralization in these areas, including 17.6 g/t Au. The exploration program is set to include additional geophysics and surface work to refine drill targets, with up to 1,800 metres of drilling budgeted. Work permits have been received and the technical team is beginning with the second target area known as Yanso, where sampling has returned promising values of up to 3.40 g/t Au and 43 g/t Ag.

A further US$2 million will be required for a 3,000 metre drill program planned for the Antofalla silver gold project in Catamarca Province, where initial results from soil sampling and surface surveys have also been encouraging. Golden Arrow’s strategy is to capitalize on both the corporate expertise and exploration talent of the Grosso Group team to find the Group’s fourth significant deposit in Argentina by continuing to actively explore its properties totalling more than 200,000 hectares.

The three previous major discoveries have all been in Argentina, providing the Grosso lot with considerable experience of operating within the country; in fact, Joseph Grosso was named “Argentina’s Mining Man of the Year” in 2005. A predictably methodical approach taken by such an experienced company should have equally predictable results – at some point, there is going to be a fourth major discovery, and it could very well be Pescado.


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