Nov. 09, 2017 01:00PM PSTPrecious Metals
Nicholas Konkin of Golden Arrow talks about the company’s milestone deal with SSR Mining, what steps are coming next and where silver is headed.
It’s been a big year for Golden Arrow Resources (TSXV:GRG). The company reached a major milestone in May, when it completed a deal to combine its Chinchillas silver project with SSR Mining’s (TSX:SSRM,NASDAQ:SSRM) Pirquitas operation, and since then it has continued to move forward.
“The Grosso Group has three significant precious metals discoveries to its name, Chinchillas being the third,” said Nicholas Konkin, marketing and communications at Golden Arrow, at the recent New Orleans Investment Conference. “We [are looking] to continue to add to that successful exploration rate.”
Currently the company is conducting exploration through a wholly owned subsidiary, but Konkin said there are plans to spin it out into a public company. “There is a not a firm timeline as of yet — we will provide guidance on that in the near future,” he said. At the moment, he added, the best way to gain exposure to potential new discoveries is to buy into Golden Arrow itself.
Watch the interview above for more insight from Konkin on Golden Arrow’s future plans, what it’s like to operate in Argentina and where the silver price is headed. You can also read the transcript below.
INN: It’s been a big year for Golden Arrow. Earlier this year, the company closed a deal with Silver Standard Resources, now SSR Mining. Can you put the deal into context? What led up to it and why is it such a big milestone?
NK: The important detail here was that SSR Mining’s … Pirquitas mine was running low on ore. They were starting to mine stockpiles. And Golden Arrow’s Chinchillas silver project is about 40 kilometers from the Pirquitas mine and mill facility, so it was a natural fit.
INN: Can you explain how the assets of the two companies are going to work together there?
NK: The joint venture is 75 [percent] SSR Mining and 25 [percent] Golden Arrow. Both the Pirquitas mine and mill facility and the Chinchillas silver project are in the joint venture, and the joint venture is called Puna Operations.
INN: What’s next for Golden Arrow? From what I understand, you’ll be conducting exploration through your subsidiary. What does its portfolio look like?
NK: Golden Arrow runs on a two-value-stream company initiative. The first value stream is the joint venture with SSR Mining — we have a 25-percent active interest in that project, and we are revenue generating as of the signing of our joint venture. SSR Mining’s guidance this year for 2017 is roughly 5 million ounces of silver.
Our second value stream is our exploration portfolio. We’re prospect developers, that’s what we’re known for and that’s what we’re good at. The Grosso Group has three significant precious metals discoveries to its name, Chinchillas being the third, and we look to continue to add to that successful exploration rate.
INN: Is the new subsidiary going to be listed on an exchange? Will there be an opportunity for investors to look at that?
NK: At the moment, it’s a fully owned subsidiary and private through Golden Arrow, so in order to access that exploration potential, it’s in your best interest to be buying into Golden Arrow. Eventually Golden Arrow will spin this out into a public company, we did announce that. There is a not a firm timeline as of yet — we will provide guidance on that in the near future.
INN: I know Golden Arrow has a long connection to Argentina. Can you talk a little about what you like about the country and the opportunities there?
NK: We’ve been doing business in Argentina since 1993. We absolutely love the country. Our exploration philosophy was that the premiere projects in Chile and the famous belts and trends in Chile don’t stop at the border. So that was our investment thesis in Argentina. We’ve spent many years cultivating relationships down there, and we believe that it is a country worth investing in. The new regime has promoted outside investment, and you’re starting to see that 10-fold.
INN: Last question — let’s talk a little about the silver market. How has it been doing so far and what do you see coming?
NK: We believe that the silver market is definitely showing signs of appreciation — we believe that in line with the mining sector it may bumble along for a little while on a sideways kind of scale. But this presents an interesting buying opportunity for investors to get into the market and position themselves. When the silver market does in fact go up, it will go up in a hurry, and you want to be ready.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.