Golden Arrow Reports on Production Update

VANCOUVER, British Columbia, Jan. 17, 2018 (GLOBE NEWSWIRE) -- Golden Arrow Resources Corporation (TSX-V:GRG) (FSE:GAC) (OTCQB:GARWF), (“Golden Arrow” or the “Company”) is pleased to provide a summary of fourth quarter and year-end 2017 operating results as well as 2018 guidance for Puna Operations Inc., as reported by the project operator, SSR Mining Inc.    

Highlights

• Exceeded annual production guidance: Exceeded the upper end of the upwardly revised annual production guidance with a total of 6.2 million ounces of silver produced. Continued excellent performance of stockpile processing resulted in silver production of 1.2 million ounces in the fourth quarter.

Following the completion of the transaction announced on May 31, 2017, Golden Arrow owns a 25% share of Puna Operations Inc., a joint venture company operated by SSR Mining which is producing silver concentrate from stockpiles at the Pirquitas operation and developing the nearby Chinchillas silver project. The information on Puna Operation’s results summarized herein, was reported in full in SSR Mining’s news release filed on SEDAR January 15, 2018.

Overview

In 2017, the operation produced a total of 6.2 million ounces of silver, exceeding our increased annual production guidance. This was largely due to stockpile grades and metallurgical performance exceeding plan. Silver sales for the year totaled 6.0 million ounces.

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 g/t, 18% lower than the 153 g/t reported in the third quarter of 2017 as we continue to process lower grade stockpiles. The average silver recovery in the fourth quarter was 66.0%.

Notes:
(1) Cash costs figures are presented on a by-product basis.
(2) Sustaining capital expenditures exclude initial capital expenditures related to the development of the Chinchillas project.
(3) Includes capitalized and expensed exploration expenses.
(4) Shown on a 100% basis unless otherwise indicated.

With the receipt of permits in December 2017 to construct the Chinchillas project, Puna Operations will complete development of this deposit in 2018 to materially extend its operating life. Consistent with the pre-feasibility study on this high return project, project development expenditures are expected to total $81 million with $70 million remaining to be invested in 2018. First ore delivery to the Pirquitas mill is expected in the second half of 2018 with sequential ramp up through the remaining months of 2018. Once Chinchillas ore is being processed, Puna Operations will produce lead-silver and zinc concentrates. The operation is expected to produce between 3.0 million and 4.4 million ounces of silver in 2018, with approximately 1.6 million ounces of production anticipated in the first half of the year based solely on processing of stockpiles and Chinchillas production anticipated in the second half of 2018.

“We are very pleased with the progress being made at Puna Operations Inc.,” stated Golden Arrow Executive Chairman, President and CEO Joseph Grosso. “We are proud to be associated with SSR Mining and look forward to more encouraging progress.” 

Qualified Persons

Brian McEwen, P.Geol., VP Exploration and Development to the Company is a Qualified Person as defined in National Instrument 43-101, and has reviewed and approved the contents of the news release. 

About Golden Arrow:

Golden Arrow Resources Corporation is an exploration company earning production income.  The Company has a successful track record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits. Golden Arrow owns a 25% share of Puna Operations Inc., a joint venture operated by SSR Mining, with more than 8 years of forecast production and upside potential at the Pirquitas -Chinchillas silver mining project.   Golden Arrow is actively exploring on its more than 200,000 hectares of properties in Argentina. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

ON BEHALF OF THE BOARD

“Joseph Grosso”

Mr. Joseph Grosso,
Executive Chairman, President and CEO

For further information, please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements.   We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.