VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 20, 2017) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(GAC.F)(WKN:A0B6XQ)(GARWF) ("Golden Arrow" or the "Company") - Subsequent to the formation of the joint venture with Silver Standard Resources Inc. (SSO.TO)(SSRI) ("Silver Standard"), which was announced on May 31, 2017, the joint venture, named Puna Operations Inc. ("POI"), has been formed to hold both the Chinchillas project and the Pirquitas project, which consists of the San Miguel open pit mine which ceased mining operations in January 2017 (the "Pirquitas Pit"), and the associated mineral processing facilities and tailings facility (the "Pirquitas Operation") in Argentina. POI is 75% owned and operated by Silver Standard, and owned 25% by Golden Arrow. For further details, please see the Company's press release dated May 31, 2017 (https://goldenarrowresources.com/news/2017/golden-arrow-completes-transaction-to-form-joint-venture-with-silver-standard-for-the-chinchillas-project). Now that the formation of the joint venture has been completed, I am pleased to update you on Golden Arrow's future business plans, as follows:
POI has an experienced technical and administrative team drawn from Silver Standard's mining staff, who have a proven track record over the past eight years of mining operations at Pirquitas. The oversight of POI's management will be provided by a board of directors comprised of three qualified individuals, who have over six decades of combined mining production experience. Two directors have been nominated by Silver Standard, and one director has been nominated by Golden Arrow, Mr. Alf Hills, P. Eng., who will represent the interests of Golden Arrow. For further details regarding Mr. Hills' experience and qualifications, please refer to the Company's press release dated May 1, 2017 (https://goldenarrowresources.com/news/2017/golden-arrow-forming-team-for-joint-venture-05-01).
Chinchillas is undergoing the necessary permitting to enable development and ore supply to the Pirquitas Operation, which is projected to have a further operating life of at least 8 years with ore supplied from Chinchillas. Please see the Company's press release dated March 31, 2017 regarding the details of the prefeasibility study and mineral resource estimates for the Chinchillas project (https://goldenarrowresources.com/news/2017/golden-arrow-announces-positive-pre-feasibility-study-for-the-chinchillas-project-joint-venture-with-silver-standard), as well as the prefeasibility study filed on SEDAR under the Company's profile on May 15, 2017 at www.sedar.com. Chinchillas is expected to supply the Pirquitas Operation with milling ore in the second half of 2018, and average annual silver equivalent production is anticipated to be 8.4 million ounces over an 8 year life of mine at a 4,000 tonne per day plant throughput. Golden Arrow's 25% share of average annual production will therefore be equal to 2.1M ozs of silver equivalent, representing total attributable after tax undiscounted cash flow of US$66.75 million, according to the recently published prefeasibility study.
Golden Arrow's portfolio of exploration prospects in Argentina, covering up to 215,000 hectares, have been transferred to a newly incorporated, wholly-owned B.C. subsidiary called B.A. Exploration Corp. ("BA Exploration"), pending registration as a shareholder in Argentina. All future exploration will be conducted through BA Exploration, as a separate exploration division of Golden Arrow. A 3,000 metre drill program is planned at the Antofalla silver gold project set to commence in the fourth quarter of 2017 in Catamarca Province where initial results from soil sampling and surface surveys have been encouraging and the Company is also planning an exploration program for the Pescado gold project in San Juan Province.
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