Gold Letter International has taken a look at Golden Arrow Resources (V.GRG):
“With its exploration activities focused on Argentina, the announced US$ 1 million exploration program at its Pescado Gold Project in San Juan Province, follows the recent business agreement with SSR Mining to combine its Chinchillas Silver-Lead-Zinc Project with SSR’s Pirquitas Silver-Zinc mining operation in the formed Puna Operations. This strategical step has significantly exceeded Golden Arrow’s potential as a junior silver producer, enhanced by its strong financial position after having received C$ 17.8 million for the Pirquitas payment.
In this respect, it is noteworthy that the Puna Operations will be one of SSR’s three priority projects, next to its producing Marigold Mine in the United States and the Seabee Gold Operation in Canada. SSR has a present market valuation of C$ 1.24 billion.
Puna Operations offers a 8.4 million silver equivalent production for 8 years, and calculated at a silver price of $ 19.50 per ounce represents US$ 11.38 billion in gross sales, resulting in a post-tax cash flow of $ 267 million and an NPV (5%) of $ 178 million.
It is to be noted that only 25 hectares of the Chinchillas Project has been explored in detail to date, and the remaining 1,978 hectares having remained under- or unexplored. Besides Puna Operations, Golden Arrow’s other properties, including the Pescado Gold Project, to be separated into New Golden Explorations, this could represent a significant added value, which stresses my investment recommendation.”