Golden Arrow Announces, Puna Operations Has Received EIA Approval for Development of the Chinchillas Project
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NEWS RELEASE – December 28, 2017
Golden Arrow Announces, Puna Operations Has Received EIA Approval
for Development of the Chinchillas Project
Vancouver, BC / Marketwired / December 28, 2017 / Golden Arrow Resources Corporation (TSX-V: GRG,
FSE: GAC , OTCQB: GARWF ), “Golden Arrow” or the “Company”) is pleased to announce th at Puna
Operations has received approval of the Environmental Impact Assessment (“EIA”) from the Argentine regulatory
authorities in Jujuy Province, Argentina, and therefore is now permitted for exploitation.
“The EIA permit represents a very important step for the Puna Operations joint venture partnership, paving the
way to extract Chinchillas ore integration with the Pirquitas mill for processing i n 2018,” stated Joseph Grosso,
President and CEO. “2017 has been a significant year that saw the combination of assets that has decades of
production potential. Additionally, as a second shareholder value stream, Golden Arrow will continue exploration
on the permitted Antofalla Project, a Chinchillas -like project, and on Pescado – all funded by new risk capital
through New Golden Explorations Inc.”
As reported in SSR Mining News Release, December 27, 2017, “SSR Mining Receives EIA Approval For The
Chinchillas Project.” Development activities will commence with first ore feed to the Pirquitas mill expected in
the second half of 2018. Priority development activities include initiating the earthworks projects at Chinchillas,
releasing construction contracts and commencing construction activities at Pirquitas, as well as pioneering works
for pre-stripping at the Chinchillas deposit.
Puna Operations Inc. is a joint venture comprised of the Pirquitas property and t he Chinchillas property, owned
25% by Golden Arrow. Chinchillas is a silver-lead-zinc deposit located approximately 42 kilometers by road from
the Pirquitas property. The pre -feasibility study on the Chinchillas project, filed on SEDAR on May 31, 2017,
evaluates the development and construction of an open-pit mine and supporting infrastructure to supply ore to
the Pirquitas processing facilities over an eight -year active mining period. The operation is expected to produce
a silver-lead concentrate and a zinc concentrate with an average annual production of 6.1 million ounces of silver,
35.0 million pounds of lead and 12.3 million pounds of zinc at cash costs of $7.40 per payable ounce of silver
sold. The Chinchillas project has low capital intensity with an estimated $81 million capital cost, based on i nitial
capital expenditures and utilizing certain property, plant and equipment from the Pirquitas property. The project
has an attractive post-tax net present value of $178 million, based on a 5% discount rate, and post -tax internal
rate of return of 29%.
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 20 0,000 hectares of concessions in
Argentina.
About Grosso Group:
Grosso Group Management Ltd. is a private management company founded in 1993, recognized as a leading
pioneer of mineral exploration in South America. The group operates with the objective of creating investor value
News Release December 28, 2017
Golden Arrow Resources Corporation Page 2
through the growth of the publicly listed member companies, which include: Golden Arrow Resources Corp., Blue
Sky Uranium Corp., and Argentina Lithium & Energy Corp.
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: 1-800-901-0058
Email: [email protected]
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.
The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as
amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration
requirements. This release does not constitute an offer for sale of securities in the United States.