Golden Arrow Resources Corp (CVE:GRG) is moving to establish two value streams, chairman Joseph Grosso told investors.
In his update, Grosso said the production start-up, within the next six months of the Chinchillas silver deposit in Argentina, will be the first stream, creating yearly income for Golden Arrow.
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The second comes from the formation of a 100%-owned new subsidiary called New Golden Explorations Inc, which will seek a listing to access funding for future exploration.
Golden Arrow intends to initially give up 40% and retain a 60% carried interest on new discovery values. This can add potential sizeable value to Golden Arrow.
New Golden Explorations is currently exploring and plans on drilling three very advanced prospects to achieve new discoveries. Exploration restarted on all the projects on January this year.
The firm's joint venture, formed to combine the Chinchillas project with Silver Standard's producing Pirquitas operation, Puna Operations Inc has now received approval of the Environmental Impact Assessment (EIA), which allows for the exploitation of Chinchillas.
Expected is delivery of first ore from Chinchillas to the Pirquitas mill in the second half of 2018, eventually reaching planned life of mine annual average production of 8.4mln ounces silver equivalent.
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Golden Arrow has a 25% share in Puna and received a $17.8mln payment from SSR Mining on May 31 last year, when the joint venture was formed.
Golden Arrow's 25% share is equivalent to having a right to an average of 2.1mln ounces of silver equivalent per year over the projected eight-year mine life.