Golden Arrow Resources Corp (CVE:GRG) updated on its Puna Operations Inc whose second-quarter results to end June were published by partner and project operator SSR Mining.
Puna, a joint venture that combines the Chinchillas project with SSR's producing Pirquitas operation in Argentina, was formed in May last year.
The second quarter saw increased activities in both pre-stripping and construction with the recruitment of new mine personnel and mobilisation of contractors at both Pirquitas and Chinchillas.
Remains on track
The project remains on budget and on schedule to support sustained delivery of ore to the Pirquitas mill in the fourth quarter of this year, Golden Arrow reported.
In July, post quarter end, first ore was trucked to the Pirquitas site.
Connection to the Pirquitas substation and installation of new transformers at Chinchillas is expected to be completed in the third quarter 2018.
During the second quarter, the Puna operation produced 1mln ounces of silver, for a total of 1.9mln ounces produced in the first half, exceeding the group's silver production guidance of 1.6mln ounces.
SSR's attributable share of silver production in the quarter was around 716,000 ounces.
Exploration continues
Exploration to expand Puna resources continues, including a 2,400 meter (m) drill program at Pirquitas targeting mineralization to augment underground resources.
"We are pleased to once again report to our shareholders that SSRM continues to demonstrate strong operational performance for Puna,” said Golden Arrow's executive chairman Joseph Grosso.
"Having a reliable operator for Puna allows us to focus our energies on our on-going exploration and acquisition activities to build additional resources and value in Golden Arrow."
Shares shed 1.06% to C$0.465.