Issue link: http://resourceworld.uberflip.com/i/712968
a u g u s t / s e p t e m b e r 2 0 1 6 www.resourceworld.com 39 Drilling at golden Arrow's Chinchillas property in northwest Argentina which is funded by Silver Standard resources. photo courtesy golden Arrow resources Corp. sition from open pit mining to processing its 2.21-million tonne stockpile until early 2018 when it is anticipated that Chinchillas ore would be available, making for a con- tinuous operation. Joseph Grosso, Executive Chairman, President and CEO of Golden Arrow, said, "The PEAs we have completed are obsolete given a combined operation with Pirquitas. All processing will be done at the Pirquitas facility so there would be completely dif- ferent economics." With any mining operations, metal prices are beyond the control of the com- pany, prompting the question: Are silver grades at Chinchillas robust enough to keep mining economics positive with up- and-down silver prices? "Yes, we believe they are," said Grosso. "We are examining several operating sce- narios. We are confident that we will be able to demonstrate that the project is able to support lower tonnage, higher grade sce- narios such as envisioned with Pirquitas or much higher throughput at lower grades as examined in the previous PEAs." The previous Phase V, 15,000-metre, drill program was successful in converting a sig- nificant portion of the resources within the high-grade Silver Mantos area to the mea- sured and indicated categories required for prefeasibility or feasibility-level engineer- ing. The Phase V and VI drill programs are part of the Chinchillas Project pre-develop- ment activities, funded by Silver Standard. Prior to starting Phase VI drilling, map- ping and trenching of several prospective areas were completed to define drill tar- gets. Drilling is testing the Chinchillas South target area, which extends from the main Chinchillas deposit about 1.5 km to the south. The area was previously tested by only eight drill holes in the Phase III and Phase V drilling. Results included multiple intercepts of silver, lead and zinc in most holes, such as: 69 g/t silver, 1.1% lead and 1.9% zinc over 15 metres in CGA-272W, including 165 g/t silver, 2.0% lead and 3.6% zinc over 3 metres; and 15 metres averaging 181 g/t silver and 1.1% lead in CGA-113. Field work may include additional geophysics in areas of the property not pre- viously covered. Engineering, metallurgical, and environmental studies are in progress. Grosso explained that Golden Arrow will be 25% shareholder of the Chinchillas Mine operating company. In addition, the company has several other projects in the pipeline, and is evaluating several other potential projects. Golden Arrow also has three projects in Argentina that are available for option; the Mogote copper-gold project, the Caballos copper-gold project and the Portrerillo gold-silver project. Grosso is pleased with the election of new, pro-mining Argentine government which is making foreign investment much more attractive. n DIG AROUND AND SEE THERE'S MORE BENEATH THE SURFACE In a volatile market we continue to focus on execution – operating safely and efficiently, maintaining financial discipline and delivering sustainable value. GOLDCORP ADVANTAGE High-Quality, Profitable Production Gold Focused Investment-Grade Balance Sheet Responsible Mining Practices Low Political Risk TSX:G NYSE:GG www.goldcorp.com