Investors piled into the stock of Golden Arrow Resources Corp (CVE:GRG) after it revealed it had exceeded annual production guidance last year.
The shares were up 6.4% in late afternoon trading at C$0.67.
The miner's Puna Operations joint venture produced 6.18mln ounces of silver in 2017, which exceeded even the upwards-revised production guidance the company had previously given.
Puna expects to produce 3,0-4.4mln ounces of silver next year, with cash costs per payable ounce sold ranging from US$12.50 an ounce to US$15.
The surfeit was largely due to stockpile grades and metallurgical performance exceeding expectations.
Silver sales for the year totaled 5.99mln ounces, down from 11.40mln in 2016.
During the year, ore was milled at an average rate of 4,927 tonnes per day. Stockpile ore milled contained an average silver grade of 152 g/t, higher than planned. While the average silver recovery of 70.3% was lower than the previous year due to planned lower silver mill feed grade, it was above our planned recovery for the year.
In the fourth quarter of 2017, silver production of 1.2 million ounces declined relative to the third quarter, as expected, due to processing lower grade stockpile ore. Silver sales totaled 0.8 million ounces.
During the fourth quarter, ore was milled at an average rate of 4,800 tonnes per day. Ore milled contained an average silver grade of 125 grams per tonne (g/t), 18% lower than the 153 g/t reported in the third quarter of 2017 as the company continued to process lower grade stockpiles. The average silver recovery in the fourth quarter was 66.0%.
“We are very pleased with the progress being made at Puna Operations Inc,” said Joseph Grosso, the executive chairman, president and chief executive officer of Golden Arrow.