Golden Arrow Resources (GRG.V) has announced an excellent resource update on its Chinchillas project in Argentina’s Jujuy province after another 9,000 meter drill program. The indicated resources are currently at 95.9 million silver-equivalent ounces at an average grade of almost 4 ounces per tonne. Additionally, there’s another 68.7 million silver equivalent ounces in the inferred resource category. This means that the total resource estimate has increased by approximately 60% compared to the previous resource estimate where the PEA was based on.

This means that the updated PEA which is currently being completed will undoubtedly increase the NPV of the Chinchillas project as the mine life will very likely be extended. On top of that, VP of Exploration Bria McEwen stated that the deposit remains open in most directions, so further resource increases aren’t unlikely. Additionally, the large low-grade zone which could contain up to 200 million silver-equivalent ounces provides further leverage to the silver price.

We will release an updated report on Golden Arrow Resources as soon as it files its technical report on this resource update.

> Click here to read the press release

Disclosure: The author holds a long position in Golden Arrow Resources. Golden Arrow is a sponsor of the website. Please see our disclaimer for current positions.

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