Golden Arrow Files PEA for Argentina-based Chinchillas Project

Golden Arrow Resources Corp. (TSXV:GRG) announced that it has filed on SEDAR an independent NI 43-101 technical report for its Argentina-based Chinchillas project. It supports the preliminary economic assessment( PEA) that the company released in December.

Highlights from the company’s PEA include:

• Open-pit mining scenario with a processing design of 6,000 tonnes per day at a 2.2:1 strip ratio, and 12 year mine life
• After-tax net present value (‘NPV’) of $98.5 million at 8% discount rate
• Internal rate of return (‘IRR’) of 17.5%
• Payback period of 3.8 years
• Pre-production capital costs of $202 million, including a 25% contingency
• Cash operating costs of $10.96 per ounce of silver, without lead and zinc credits
• Average annual silver production of 5.4 million ounces

Brian McEwen, Golden Arrow’s vice president of exploration and development, commented:

We appreciate the excellent efforts of our consultants in helping us to advance Chinchillas by providing a first view of the project’s potential economics. Our team believes strongly in a future of mining for Chinchillas and we are now engaged in a new exploration program to increase resources throughout the property and move the project another step towards feasibility.

Click here to read the full Golden Arrow Resources Corp. (TSXV:GRG) press release.

Click here to read Silver Investing News’ August interview with Golden Arrow.