Issue link: http://resourceworld.uberflip.com/i/712968
38 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 6 Golden Arrow Resources Corp. [GRG- TSXV; GAC-FRA; A0B6XQ-WKN] is conducting a 6,500-metre Phase VI drilling and exploration program at its 100%-owned Chinchillas silver (lead-zinc) project in mining-friendly Jujuy Province, Argentina. Drilling will focus on explora- tion, condemnation and infill holes. The company recently completed a NI 43-101 compliant technical report that stated measured and indicated resources total 34.2 million tonnes grading 91 g/t silver, 0.82% lead and 0.57% zinc, for a silver equivalent of 155 million oz. Inferred resources stand at 39.2 million tonnes grad- ing 42 g/t silver, 0.44% lead and 0.76% zinc, for a silver equivalent of 90 million oz. Brian McEwen, PGeol, VP Exploration & Development, said, "The area of the resource reported in the last 43-101 is approximately 70 hectares. Our property is about 2,000 hectares. We have indications of lots more mineralization from mapping and drilling. The project has the potential of getting a lot bigger. This next phase of drilling along with the recently completed exploration program will test the true potential outside of the main Chinchillas area." Golden Arrow has an agreement with Silver Standard Resources Inc. [SSO- TSX; SSRI-NASDAQ] whereby they have proposed creating a mining merger joint venture to combine the Chinchillas Project and Silver Standard's nearby Pirquitas silver mine. Silver Standard has committed up to US $12.6 million for project evaluation and, assuming the agreement is completed, under the JV, Silver Standard would be operator and 75% owner of Chinchillas with Golden Arrow owning the remaining 25%. The benefits of this arrangement will be that Silver Standard's Pirquitas Mine will process Chinchillas ore as the 4,000 tpd Pirquitas operation is mined out in the near future and Golden Arrow's Chinchillas Project will be fast-tracked to production. Golden Arrow will receive cash payments from Silver Standard of up to CDN $2 million upon reaching certain milestones in the preliminary period, and is accruing a 25% interest in the cash flow from Pirquitas from October 1, 2015 to the exercise of the option. By year end, Silver Standard will tran- Golden Arrow Chinchillas pre-development program underway miNiNg