![Chinchillas - Panorama Silver Mantos to Socavon](https://www.caesarsreport.com/wp-content/uploads/2013/04/Panorama-Silver-Mantos-to-Socavon.jpg)
Golden Arrow Resources (GRG.V) has released an updated resource estimate for its Chinchillas silver project in Argentina’s Jujuy province. This updated estimate is part of the so-called pre-development activities under the agreement with Silver Standard Resources (SSRI, SSO.TO), whereby Silver Standard will have the option to acquire 75% of Chinchillas by giving up a 25% stake in its producing Pirquitas silver project, just a few dozen kilometers down the road.
The updated resource estimate now also contains a maiden measured resource estimate of 17 million silver-equivalent ounces, bringing the total M&I resources to 155 million (again on a silver-equivalent basis). The inferred resource estimate was also quite decent at 90 million silver-equivalent ounces, resulting in a total resource estimate of 245 million silver-equivalent ounces. You might remember one of our reports from 2014 wherein we said we wouldn’t be surprised to see Chinchillas ultimately containing half a billion silver-equivalent ounces, and we’re now almost halfway that target!
![Golden Arrow Resources](https://www.caesarsreport.com/wp-content/uploads/2014/06/Golden-Arrow-Resources.jpg)
There’s however one minor detail that might grab your attention, and that’s the silver price used to determine the pit shell. At $25/oz silver, one can’t really say this updated resource estimate is ultra-conservative. Don’t get us wrong, it still is a good project, but you should keep this in mind. That’s not necessarily a problem, because if one would use a cutoff grade of 70 g/t AgEq rather than the 45 g/t in the resource estimate, Chinchillas would still contain 205 million silver-equivalent ounces at an average grade which is 20-25% higher.
Go to Golden Arrow’s website
The author has a small long position in Golden Arrow Resources. Please read the disclaimer
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