Golden Arrow Reports on Production Update
January 17 2018 - 9:25AM
Golden Arrow Resources Corporation (TSX-V:GRG)
(FSE:GAC) (OTCQB:GARWF)
, (“Golden Arrow” or the
“Company”) is pleased to provide a summary of fourth
quarter and year-end 2017 operating results as well as 2018
guidance for Puna Operations Inc., as reported by the project
operator, SSR Mining Inc.
Highlights
- Exceeded annual production
guidance: Exceeded the upper end of the upwardly revised
annual production guidance with a total of 6.2 million ounces of
silver produced. Continued excellent performance of stockpile
processing resulted in silver production of 1.2 million ounces in
the fourth quarter.
Puna Operations Inc., Argentina Operating
Results Summary, 100% Basis |
|
|
Q4 2017 |
Q3 2017 |
%Change 1 |
FY 2017 |
FY 2016 |
%Change 1 |
Ore milled |
kt |
442 |
461 |
(4.1%) |
1,798 |
1,774 |
1.4% |
Silver mill feed grade |
g/t |
125 |
153 |
(18.3%) |
152 |
235 |
(35.3%) |
Silver recovery |
% |
66.0% |
67.8% |
(2.7%) |
70.3% |
77.8% |
(9.6%) |
Silver produced |
koz |
1,169 |
1,541 |
(24.1%) |
6,177 |
10,422 |
(40.7%) |
Silver sold |
koz |
820 |
2,076 |
(60.5%) |
5,994 |
11,397 |
(47.4%) |
Notes: (1) Percent changes are calculated using rounded
numbers presented in the table.
|
Following the completion of the transaction announced on May 31,
2017, Golden Arrow owns a 25% share of Puna Operations Inc., a
joint venture company operated by SSR Mining which is producing
silver concentrate from stockpiles at the Pirquitas operation and
developing the nearby Chinchillas silver project. The information
on Puna Operation’s results summarized herein, was reported in full
in SSR Mining’s news release filed on SEDAR January 15, 2018.
Overview
In 2017, the operation produced a total of 6.2
million ounces of silver, exceeding our increased annual production
guidance. This was largely due to stockpile grades and
metallurgical performance exceeding plan. Silver sales for the year
totaled 6.0 million ounces.
During the year, ore was milled at an average
rate of 4,927 tonnes per day. Stockpile ore milled contained an
average silver grade of 152 g/t, higher than planned. While the
average silver recovery of 70.3% was lower than the previous year
due to planned lower silver mill feed grade, it was above our
planned recovery for the year.
In the fourth quarter of 2017, silver production
of 1.2 million ounces declined relative to the third quarter, as
expected, due to processing lower grade stockpile ore. Silver sales
totaled 0.8 million ounces.
During the fourth quarter, ore was milled at an
average rate of 4,800 tonnes per day. Ore milled contained an
average silver grade of 125 g/t, 18% lower than the 153 g/t
reported in the third quarter of 2017 as we continue to process
lower grade stockpiles. The average silver recovery in the fourth
quarter was 66.0%.
Outlook |
|
Operating Guidance |
|
Puna Operations(25% interest) (4) |
Silver Production |
Moz |
3.0 – 4.4 |
Lead Production |
Mlb |
7.0 – 12.5 |
Zinc Production |
Mlb |
5.5 – 7.5 |
Cash Costs per Payable Ounce Sold (1) |
$/oz |
$12.50 – $15.00 |
Sustaining Capital Expenditures (2) |
$M |
$10.0 |
Capitalized Stripping / Capitalized Development |
$M |
$10.0 |
Exploration Expenditures (3) |
$M |
$1.0 |
Notes:(1) Cash costs figures
are presented on a by-product basis.(2) Sustaining capital
expenditures exclude initial capital expenditures related to the
development of the Chinchillas project.(3) Includes capitalized and
expensed exploration expenses.(4) Shown on a 100% basis unless
otherwise indicated.
With the receipt of permits in December 2017 to
construct the Chinchillas project, Puna Operations will complete
development of this deposit in 2018 to materially extend its
operating life. Consistent with the pre-feasibility study on this
high return project, project development expenditures are expected
to total $81 million with $70 million remaining to be invested in
2018. First ore delivery to the Pirquitas mill is expected in the
second half of 2018 with sequential ramp up through the remaining
months of 2018. Once Chinchillas ore is being processed, Puna
Operations will produce lead-silver and zinc concentrates. The
operation is expected to produce between 3.0 million and 4.4
million ounces of silver in 2018, with approximately 1.6 million
ounces of production anticipated in the first half of the year
based solely on processing of stockpiles and Chinchillas production
anticipated in the second half of 2018.
“We are very pleased with the progress being
made at Puna Operations Inc.,” stated Golden Arrow Executive
Chairman, President and CEO Joseph Grosso. “We are proud to be
associated with SSR Mining and look forward to more encouraging
progress.”
Qualified Persons
Brian McEwen, P.Geol., VP Exploration and
Development to the Company is a Qualified Person as defined in
National Instrument 43-101, and has reviewed and approved the
contents of the news release.
About Golden Arrow:
Golden Arrow Resources Corporation is an
exploration company earning production income. The Company
has a successful track record of creating value by making precious
and base metal discoveries and advancing them into exceptional
deposits. Golden Arrow owns a 25% share of Puna Operations Inc., a
joint venture operated by SSR Mining, with more than 8 years of
forecast production and upside potential at the Pirquitas
-Chinchillas silver mining project. Golden Arrow is
actively exploring on its more than 200,000 hectares of properties
in Argentina. The Company is a member of the Grosso Group, a
resource management group that has pioneered exploration in
Argentina since 1993.
ON BEHALF OF THE BOARD
“Joseph Grosso”
Mr. Joseph Grosso, Executive Chairman, President
and CEO
For further information, please contact: Corporate
Communications Tel: 1-604-687-1828 Toll-Free: 1-800-901-0058Email:
info@goldenarrowresources.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward-looking
statements. Forward-looking statements address future events
and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Readers are encouraged to
refer to the Company's public disclosure documents for a more
detailed discussion of factors that may impact expected future
results. The Company undertakes no obligation to publicly update or
revise any forward-looking statements. We advise U.S.
investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC. U.S.
investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our
properties.
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