An introduction to Golden Arrow Resources
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VERY RISKY!!!!
You are betting on a proven team.
Al have a look around in todays world unfortunately that excellent management team means less and less, if the street/volume is not behind any investment its DEAD money, good luck!
I do agree, but management is still a strong consideration, don’t you think?
It’s obviously not for a guy who typically trades SPY or GDX but a knowledgeable speculator can make a fortune on such low volume plays.
Still alive and kicking!
Ojj, you are a trader. Others are not.
Most recent press release in part:
Vancouver, BC / TheNewswire / July 31, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), “Golden Arrow” or the “Company”) is pleased to announce an updated estimate of mineral resources for the Chinchillas Silver Deposit in Jujuy Province, Argentina, incorporating the results from more than 11,000 metres of new diamond core drilling.
Highlights of the Mineral Resource Estimate
-Indicated Mineral Resource of 104 million ounces of silver equivalent (AgEq) at 125g/t AgEq grade (25.9 million tonnes grading 77.2g/t silver, 0.66% lead, 0.66% zinc at a 45g/t AgEq cut-off)
-Inferred Mineral Resource of 140 million ounces of AgEq at 92 g/t AgEq grade (47.1 million tonnes grading 50.2 g/t silver, 0.52 g/t lead and 0.64 g/t zinc at a 45g/t AgEq cut-off)
-Deposit remains open to expansion
“We are very pleased with this new resource estimate, which shows a 25% increase in silver and more than double the previous amount of zinc compared to the previous estimate.” commented Golden Arrow VP Exploration and Development, Brian McEwen. “In addition to the increase in the size of the deposit, the latest drill campaign has added new drill targets.”
A NI 43-101 Technical Report supporting disclosure of this mineral resource will be filed by Golden Arrow on SEDAR within 45 days of this press release. Golden Arrow plans to incorporate the resource into new economic studies as it continues its advancement of the project to feasibility.
Chinchillas Geology Overview
Golden Arrow holds a 100% interest in the Chinchillas project, located in the prolific Bolivian silver-zinc-tin belt which extends into northern Argentina.
Chinchillas is a Tertiary aged volcanic complex that has erupted through the Paleozoic basement schists. The resulting depression or basin, filled with volcanic tuffs and tuff breccias. Shallow disseminated silver, lead and zinc mineralization occurs in thick layers or “mantos” within the tuffs and breccias. A second style of silver, lead and zinc mineralization occurs within the fractures of the brecciated Ordivician basement pelite and sandstone schists beneath.
Silver-lead-zinc mineralization included within the resource model occurs in four units which are differentiated based on host rock and geometry. The Silver Mantos and Socavon del Diablo (“Socavon”) zones are the upper tuff units in the western and eastern halves of the deposit respectively, with the Socavon zone also including some mineralization hosted in dacite intrusions. The Mantos Basement and Socavon Basement units are hosted by the basement schists that lie generally beneath their respective tuff units.
Resource Estimate……
Thanks, Professor!
What relation is Brian McEwen to Rob McEwen?
Do not know, . But will ask!
Management got a lot of options nine months ago at $0.35. Not in the money.
Well, that is probably a good sign.
Cory, you usually ask….How much cash reserves, Burn rate.?
I hold a few thousand shares just to get annual reports.
I like these guys Professor!
I thought their land package interesting a couple of years ago. I actually can’t remember why, and I’m not in Indiana to check. Besides I’m off to Europe next week, so everything is on a back burner for a while. I’m going to be sitting at sidewalk cafes people-watching for a change, enjoying a rare steak or two, pommes frite and sipping some local vin rouge.
Owl……even CFS is from INDIANA……smart guy.
I mean to say….cfs is a smart guy……..
A few years in the future zinc is not projected to be abundant supply.
Al & Cory:
Thanks for this but I have to wonder why anyone in this environment where prices are set and not discovered, where the paper market runs roughshod over the physical market why-oh-why would anybody want to start up another mine so prices could be suppressed even further? Both gold and silver mines need to be closing not opening.
Moreover if you look at this company I am deeply troubled by a few things. The last financial statement available on their web site is from March 31, 2015 and in it I see that their assets have plummeted by about 33% from $1.43 million(Can) to $953,000(Can) between the end of 2014 and March 31, 2015. Reading these financial statements is a new art form for me so if I am wrong about this please let me know. Since they have no income at this burn rate they will need a major new cash infusion very soon. So I am forced to ask where that will come from? As the vast majority of their expenses are for lease payments, exploration and to a much lesser extent to pay Grosso Group, the parent company, for management services I see no way they could afford any type of pilot plant to start cash flow from any of their holdings. To me they seem to be fast approaching a time where they have to accept whatever offer comes along just to keep the company in existence or mothball the project and wait for precious metal prices to recover.
Again, I am a newbie in this world but after watching one of my mining stocks recently go bankrupt because of spending way too much on exploration I realized that there is more to precious metal mining than just the spot price of gold or silver. Sometimes, just like a investor who decides it is best to hold cash on the sidelines, it may be best for a company to put a deposit on a sideline waiting for a better time to develop it.
Thanks for all you do –
Mike, your second sentence contradicts the spirit of your first sentence. Shouldn’t market forces decide the fate of each venture?
Matthew you say: “your second sentence contradicts the spirit of your first sentence.” I’m not sure I agree. To me the only way to deal with the issues resulting from the first sentence is the second sentence but those are feeling not realities. As long as mines are willing to sell something below the cost of production there is every incentive in the market to drive prices lower. But that isn’t the main reason for my post –
What I’d like to know – did I extract the correct information from the March 31, 2015 financial statement? I would like to learn how to read these beasts.
Unless they find a partner, the money they need to keep going will probably be raised in private placements. They raised a little money that way in July. I’m pretty sure debt will be used for the bulk of their pre-production capital requirements but that’s probably a ways out unless silver gets moving.
http://www.goldenarrowresources.com/s/NewsReleases.asp?ReportID=715581&_Type=News-Releases&_Title=Golden-Arrow-Announces-Completion-of-Private-Placement-at-1.50-per-Share-an…
The quickest way to find out their current burn rate is to email them. I would not assume that expenditures are the same each quarter. If they happen to be fine for the next 6 to 12 months, their share price could be substantially higher when the next offering is announced —OR, substantially lower if the metals don’t turn up.
It’s good to see that insiders hold about 50% and Silver Standard owns about 8% but silver has go up before their assets in ground will anything for the share price.
Matthew, again thanks for this –
One thing I really didn’t see is a timeline so perhaps site development is many years off. I should have done some Googling and I would have found the Silver Standard news. That makes me feel a bit better taking a flyer on this one.
As I tell my friends, I don’t gamble at the Casino’s in New Mexico I buy gold and silver miners instead!
I agree, the miners are much more interesting but I did have some good luck at the Santa Ana Star about 20 years ago!
I wouldn’t buy this stock with Big Al’s money, there is NO VOLUME how the H are you going to get out of this?