Golden Arrow Resources (TSX-V: GRG) VP Brian McEwen Gives an Update on the Option Agreement with Silver Standard, and other Q1 Catalysts
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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is VP of Exploration and Development of Golden Arrow Resources (TSX-V: GRG)(OTC: GARWF), Mr. Brian McEwen. Brian, thank you for joining me today sir.
Brian McEwen: A pleasure to be here Gerardo.
Gerardo Del Real: Well with the New Year I wanted to touch base. I wanted to reach out and see if we can get an updated on the option agreement with Silver Standard Resources in regards to the Chinchillas project. I know that's something that has been a focus for the company for all of 2016 and I just want to see where that was at and where you see that going, how that's developing.
Brian McEwen: Well the agreement that we have with Silver Standard, that was an 18-month agreement that expires at the end of March so that's really their kind of drop dead date. Whether or not they exercise before that will be completely up to them. Talking with Silver Standard they've been very forward with telling us that there's this long list of things that they want to check off and once they those things all checked off their intention is to go ahead. So far we've basically finished the pre-feasibility study. We're just wrapping that up right now.
We submitted the EIA for permitting and really that's the big one as they're waiting to hear back on the permit. Then there's this issue of negotiating this old tax with the government. That's all under way. I can't say for sure when that'll happen but I believe wholeheartedly it will happen, but they have until the end of March to make that decision.
Gerardo Del Real: Excellent. Now I understand at the end of December that there was exploration work that was going on at Chinchillas and regionally to delineate additional potential ore feed for their proposed operation. Can you comment on that a bit and give us an update on that?
Brian McEwen: Well there is, I mean if you look at what's being developed right now or the plan to be developed with Silver Standard and the feed for Pirquitas it's in one main area. That's going to give them probably around 10 years of mine life. Then we've got other resource areas that we've drilled off and they need more work to get them up to that kind of level.
We've got some indications in other areas and on the immediate Chinchillas property that we worked on, but the rest of the area is largely unexplored. We went around with some of the representatives from Silver Standard and we saw other areas within a 50-kilometer radius of the Pirquitas plant and there were some areas there that require some follow up that we've outlined. Right now that's just really not the real rush or the focus. The thing right now is to focus to get this thing running and then at the JV’s decision or whatever more work will be done in the time in the future.
Gerardo Del Real: Absolutely. Now the other thing that I think sticks out for me for Golden Era was that the company has approximately as of the end of December anyway, about C$8 million plus 8 million unexercised warrants, which could be turned into approximately another C$5 million if I'm not mistaken. I understand that some of that has been put to work on the latest project Antofalla in Catamarca Province. Can you comment a bit about that Mr. McEwen?
Brian McEwen: Yeah I'd like to. One thing I'd like to also add and I'm not sure whether you're aware of this Gerardo, but we had stage payments from Silver Standard. There was $2 million in cash as part of our deal with them, and on signing we got $500,000. And then at the end of six months we got $500,000. That's been going on and just to give you an indication of what Silver Standard might be thinking, they had to make their last payment as on December 20. They did make that payment so that put another half million dollars into our coffers as well.
As far as Antofalla goes, we did get off to a little bit of a slow start with getting all of our stuff in the community straightened out and all of that. That's all underway now. We're going to have a couple of different crews up there working now full time and we're looking forward to getting some data out on that and still looking to hopefully be able to drill some holes before the end of the season.
Gerardo Del Real: Excellent. Well it sounds like the first quarter or first half of 2017 is going to be a busy one for Golden Arrow Resources. You have a lot of irons in the fire. Mr. McEwen, anything that you'd like to add?
Brian McEwen: Well, yes, I'd like to also add that we're looking at some other properties. There's some very good projects that are within the Grosso portfolio that we're going back and following up on those as well as looking at some other opportunities that have come about. It will be an exciting quarter and we're looking forward to getting going on all that.
Gerardo Del Real: Excellent. Mr. McEwen, thank you so much for coming on today. You have a great afternoon.
Brian McEwen: My pleasure Gerardo, anytime.
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