Golden Arrow Resources (TSX-V: GRG) CEO Joe Grosso on the Disconnect Between Share Price and Value of Golden Arrow Assets

January 31, 2019

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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Executive Chairman, CEO and President of Golden Arrow Resources (TSX-V: GRG)(OTC: GARWF), Mr. Joe Grosso. Joe – as you asked for me to call you – how are you, sir?

Joe Grosso: I am great. I am excited at what we have been able to put together in the last few years, and recently. We have two values which are very prominent in Golden Arrow. One, of course, is the development of an existing portfolio of properties which have the geology identified, and it's something that's known. We concentrate, as you know, in precious and semi-precious metal. We do have our properties in which we have both and have the geology in place and already some drilling results.

We're continuing with the excitement that we can reach our objective with discovering faster and cheaper than having to wait the lengthy period of time that it has taken in the last 25 years. So we basically became much smarter. We've become smarter in saying, "Okay, rather than going after grassroots properties, we're going to be developing the resources that we have." We have expanded our horizon from Argentina to Chile. Chile, of course, is a known mining country. It's fully developed.

We have some projects that we have announced recently, which are extremely exciting. They are in an area which is a very prolific area for gold, silver and copper together. So we have that in place to go, and we also are accelerating our accumulation of properties in Paraguay. Paraguay is an exciting, exciting place to be because their geology is like a jewelry store. It's unbelievable, and we will, as quickly as we can, go and explore in that country as well.

Argentina, of course, is our host country. We have been there for 25 years, and we have developed again properties which are advanced enough in exploration that we can take them to drilling and take them to feasibility study and on, looking for partners to come and develop it like we have done with Chinchillas. Chinchillas was in the same position as the other property that we now have. It had discoveries and had values so that a major was very excited about it, and so we become partners. We're 25% partners of Chinchillas Project, which has been in production now for a few months. The infrastructure and everything else is in place. That is known to have a rough value of about $600 million in total, which we own 25% of the assets.

As far as income is concerned, there is a very exciting projection by the major company, which is SSR Mining. They are the mining manager of production with a long record of success, so we have two sources here. We have the Chinchillas in full blast of developing the 8 to 10 million ounces per year. So we own 25% of that. And we have the second part, which is our knowledge and reputation that we are developers of geology to feasibility study. Then it takes giant investment by a major company that has done that.

The depletion of the deposits in production around the world is horrendous, and the majors are after a company like us with known value in place. The majors have no desire whatsoever to get involved with an early stage grassroots exploration company, and we are not. We have advanced the geology in a multitude of projects in Argentina, in Chile, and targeting and entering into Paraguay, which is also an exciting place to be.

So I feel that the listeners should study the exclusive opportunity that we are offering by entering and purchasing the shares of our company. We are well-run. We've been in place for 25 years. The geology that we have in place, and we are in production, and that should excite the potential shareholder and people reviewing our stock. Explorationists rarely are in production and discoveries are pretty rare. We have a reputation up to now that, for 25 years, yes, starting from grassroots, we've come up with three huge projects, one in Navidad, for instance. Pan American will invest to develop that project.

We are concerned about the market has been sluggish. The investors have not been very active in buying shares in the market, especially mining stocks. We are happy to say that only four months ago we were pretty depressed about it, and now we are completely the opposite. We are very excited because we see an improving market, number one. The improving market in my experience always shows when a stock of the major company in any industry are the ones which are rising very fast, and all the major mining companies are on increase, sizeable increase. The junior, of course, would become the second selection which, opportunists and people that would like to make a better reward, they buy, and they should be looking very closely at silver going from flirting with $13 up to flirting with $16 in only a few months.

Silver is expected to continue its rise. And as it continues its rise. Obviously, we have a lot of silver projects that will benefit, so Golden Arrow is a winning lottery ticket rather than a share. With 15% of value, Gerardo, I don't know what else I can say. We are super excited in the assets that we've been able to put together, very excited, and right now we're watching very carefully how much can we raise at 15% of value, of the real value, and go and blast away to do a lot of exploration.

It does not make sense. We have to basically see an improvement on the market, a much improved stock price, which we're doing right now. I can assure you that I will be telling my story at the PDAC in Toronto, which is a major world-sized convention. We have appointments with people from the United States primarily, a big company that are following us. We feel very confident that we'll be able to make the price of the shares rise to where it should be. Right now, as I said, you're buying with 15 cents on the dollar value.

Gerardo Del Real: I have to say, Joe, that it's a pretty compelling risk-reward proposition. I think everybody that participates in the resource space knows that 2018 was one of the toughest years on record, but we've also been on the other side of it. When you come out of those depressed valuations and you get a rising market, and it appears that the precious metals space is leading in that direction, and it has some momentum, so we know how quickly that can turn.

You and your team have done a great job of bringing in a variety of assets, everything from exploration all the way to production exposure, and you should be congratulated for that. Not only that, you've been able to diversify the jurisdictions and provide exposure to multiple commodity types.

I know 2018 was tough. I think you made the case very, very well because it's just math, and the rest of it is, fingers crossed, that we get a better precious metals market. It looks like we're going to get it, and if this continues, if we continue with this momentum, I get the feeling you and I will be chatting in three to 6 months' time and laugh about the current share price.

Is there anything else that you'd like to add, Joe?

Joe Grosso: I would like to say that the insider you're truly speaking to right now, and the family and friends are financing continuously the period of time that it takes to get to the better price of shares. And we are putting all our energy in doing exactly that. We tell our very exciting story to as many people as we can and, no doubt, this is really at the bottom of the pot at the moment. We're talking about $0.27 US or less for a stock which has got an immense value in the production, 25% production, that we're going to have with an income soon in one and the property portfolio which we have. They are all advanced projects. As I said, every share becomes a winning lottery ticket because it has an immense potential of appreciating, and we're doing everything we can.

More important than anything else, the insiders believe enough that we're continuing to finance because issuing shares at these prices, it's just not feasible, so we got to wait. We continue our story. We continue to be super excited, and we hope that our excitement is picked up by listeners and the audience that we speak to.

Gerardo Del Real: You have a lot of skin in the game. Again, it's a testament to the team that you keep writing checks and self-financing. And again, I think your reputation precedes you and merits that confidence.

Joe, thank you so much for your time. Again, I'm looking forward to catching up in a couple of months and, hopefully, it's a much brighter days, a higher silver price, a higher gold price, and let's see where we're at share price-wise with Golden Arrow. I get the feeling that the best days are ahead of you here.

Joe Grosso: I want to thank you immensely, and I can promise you that, without the share price that I have now, I'll be a little more eloquent in making the future presentations on your program.

Gerardo Del Real: It's always a pleasure, Joe. Thank you so much.

Joe Grosso: Okay, thank you. Thanks.

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