Golden Arrow Releases New PEA for Chinchillas Silver Project

Golden Arrow Resources Corp. (TSXV:GRG) announced the results of an updated preliminary economic assessment (PEA) for its Argentina-based Chinchillas silver-lead-zinc project. The new PEA more than doubles the project’s after-tax net present value to US$226 million.

Other highlights include:

• A processing rate of 2.9 million tonnes per year (8,000 tonnes per day) and open-pit mining scenario, at a 2.4:1 strip ratio, and 12 year mine life
• Internal rate of return (‘IRR’) of 24.3%
• Payback period of 3.4 years
• Pre-production capital costs of $237 million, including a 20% contingency
• Cash operating costs of $9.22 per ounce of silver, without lead and zinc credits
• Average annual silver production of 8 million ounces

Brian McEwen, vice president exploration and development at Golden Arrow, commented:

We are very pleased with this economic assessment as it provides an even stronger demonstration of the potential of Chinchillas as a viable mining project. We are now looking forward to moving into a feasibility assessment in 2015, while continuing to explore the property and expand resources.

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