Golden Arrow Hits the Silver Target

 

The price of silver rose higher than gold this year, 25 percent to 22 percent. It’s now at $20 with Bank of America Merrill Lynch predicting last week that the metal’s price will hit $30 next year. Aside from investors’ flight to safe haven assets, surging global demand for gadgets and other industrial applications is helping drive the price of silver up. Now that places silver miners on sound footing with their increased production last year.

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Vancouver-based explorer and prospector Golden Arrow Resources (Nasdaq: GARWF) estimated 100 million ounces of silver in its 100 percent-owned Chinchillas mining project in Jujuy, Argentina. Yield is seen doubling as unexplored parts of the mine are yet to be surveyed and sampled. It is extracting and monetizing the treasure trove, including lead and zinc deposits, with another silver miner that is already funding pre-development. The two companies had agreed to merge their silver mines in Jujuy that would give Golden Arrow Resources a 25 percent share in the revenue of the combined mines. The partner’s Pirquitas mine has a reserve of 84 million ounces of silver.

 

About Joseph Grosso, President Golden Arrow

 

Joseph Grosso, executive chairman, CEO and president of Golden Arrow Resources, founded the company in 1993 and spearheaded mineral exploration ventures in Argentina over the next 20 years. His pioneering efforts earned him the “Argentina’s Mining Man of the Year” award in 2005 and the “Prominent International Businessman” award in 2014. Grosso also received the “Award of Distinction” for his Grosso Group in 2013 in recognition of its support of the mining industry in Argentina.

 

Golden Arrow Resources’ Argentina portfolio includes nearly 30 highly prospective exploration properties mostly located near major mines and within well known mining districts in the South American country. Aside from Chinchillas, which was acquired in 2015, its other properties are in La Rioja Province and San Juan Province.

 

The Don Bosco Copper-Gold Project in La Rioja covers 23,000 acres in western Argentina. Initial surface exploration indicated gold, silver and copper deposits. The Caballos Copper-Gold Project covers over more than 49,000 acres near the Chile border.

 

In San Juan, the Mogote copper-gold-silver project is centrally-located in the prolific Vicuna District north of the province. The 54,000-acre Pescado property has potential for gold deposits similar to the rich Gualcamayo gold mine just six miles south. A third mine in the province is the nearly 10,000 acres Potrerillos gold-silver project located in the El Indio gold silver belt, just five miles east of the Veladero gold mine.

 

Financial Analysis

 

Golden Arrow Resources has experienced recurring operating losses and has an accumulated deficit of $33,787,855, a working capital deficiency of $646,696 and negative cash flow from operating activities of $901,332 for the three months ending on March 31, 2016, according to the company’s first quarter financial report. With the joint venture going through later this year, however, Golden Arrow Resources can transform from a losing exploration company into a highly profitable mine, according to Seeking Alpha analyst Albert Sung.

Grosso’s reputation as a negotiator paved way for the mining deal setting Golden Arrow to a likely upward trajectory in the business chart.