As investors hunt through the year end tax loss selling bargain bin, Gold Newsletter has a suggestion: Golden Arrow Resources (V.GRG). Part of the Grosso Group, Golden Arrow is a near producing gold company in Argentina. Here’s what the newsletter had to say:
“Golden Arrow is already enjoying cash flow from its 25% interest in Puna, as Pirquitas produced I .5 million ounces of silver in Q3 2017 and has produced five million ounces year-to-date. Better still, the mill is operating at 5 ,012 tonnes-per-day, or 25% more than the mill’s nominal throughput.
This latter point is a critical potential catalyst for Golden Arrow, as the pre-feasibility study generated on Chinchillas is based on the mill at Pirquitas processing at a 4,000-tpd rate….
Not only could additional drilling convert more of the measured and indicated resources to reserves, but there’s also an opportunity for a small, high-grade underground operation at Pirquitas to boost the economics of the ore mined at Chinchillas.
Golden Arrow plans to use the funds from operations at Pirquitas and Chinchillas to make additional property acquisitions in Argentina. It also plans to spin out its large exploration portfolio into a separate company in early 2018, so shareholders who buy in before this event will get to participate in that portfolio’s considerable upside.
As I said, near-term production stories like this one are likely to do well in the precious metals market I see developing in the new year. With the market providing a discount courtesy of tax-selling season and the Fed’s current machinations, now is a good time to build a position in this well-managed company.
It’s a buy.”