Golden Arrow Resources Corp (CVE:GRG) (OTCMKTS:GARWF) reported that its joint venture with SSR Mining in Argentina is producing high grades of silver from the new Chinchillas mine.
Shares of Golden Arrow were up more than 4% in the US to US$0.22, while in Canada shares were trading at C$0.30 on Thursday.
The silver mine, which just went into commercial production in December 2018, produced 2.4 million ounces of silver in the first quarter of 2019.
Chinchillas also produced 6.8 million pounds of lead and 1.6 million pounds of zinc during the first quarter.
Silver grades from the mine were high, averaging around 235 grams per ton of the precious metal, with recoveries quoted at around 92%.
"In the first quarter of the year material from the Chinchillas mine returned excellent grades of silver and achieved remarkable processing recoveries, and we now look forward to achieving steady-state production," said Joseph Grosso, Golden Arrow’s chairman and CEO, in a statement.
Golden Arrow discovered the Chinchilla project seven years ago and delineated it between 2012 and 2015. It is now owned by Puna Operations Inc, which is a joint venture between operator SSR and the firm. Golden Arrow holds 25%, while SSR has the remainder.
The combination of the firm's Chinchillas project with the then Silver Standard Resources Inc's Pirquitas mine just down the road officially got the go-ahead in March 2017.
SSR Mining noted in a release that ramp up at Chinchillas was substantially completed during the first quarter 2019, as commercial production was achieved on December 1, 2018.
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