GRG Has 155 Million Oz Silver Resource
Yesterday morning, NIA announced Golden Arrow Resources (TSXV: GRG) at $0.91 as its new #1 silver stock suggestion. GRG finished yesterday up an incredible 21% to $1.10 per share on enormous volume of over 3 million shares – and NIA predicts that $2+ per share is coming very soon!
GRG only has 77 million shares outstanding and a market cap here at $1.10 per share of CAD$84.7 million or USD$64.03 million. GRG’s Chinchillas silver project located in the mining-friendly Province of Jujuy, Argentina, contains 155 million measured/indicated silver equivalent ounces! Currently, GRG‘s Chinchillas silver resource is being valued at an insanely low $0.41 per oz!
Silver Standard Resources (SSRI)‘s Pirquitas silver mine is located just 35 km northeast and is currently producing over 10 million oz of silver annually. Unfortunately for SSRI, Pirquitas has a short mine life with only 16.5 million oz of remaining silver reserves. Unless SSRI figures out a way to extend the mine life of Pirquitas, it will need to shut down its 4,000 tpd silver mining operation in late-2017/early-2018.
According to SSRI‘s CEO, “We’ve looked around regionally to see if there were other options to extend the mine life, but outside of GRG’s Chinchillas – there’s nothing!”
Ten months ago, SSRI struck a deal with GRG – committing to invest USD$12.6 million on exploring/evaluating GRG‘s Chinchillas over the following 18 months. Later this year. SSRI will officially announce if it will move forward with a major joint venture agreement that it has entered into with GRG. The agreement will allow SSRI to combine its Pirquitas silver mine with GRG’s Chinchillas – with GRG receiving 25% of the combined project and SSRI receiving the other 75%!
Based on SSRI‘s current enterprise value of $970 million and NIA’s estimate that half of SSRI’s enterprise value is for their Pirquitas silver mining operations – it gives Pirquitas a current valuation of $485 million. By SSRI agreeing to give GRG a 25% stake in the combined Pirquitas/Chinchillas silver mining project – it gives GRG‘s Chinchillas an implied valuation today of USD$161.67 million or CAD$213.59 million, which would value GRG at $2.77 per share!
Remember, based on GRG’s measured/indicated Chinchillas silver equivalent resource of 155 million oz – GRG at $2.77 per share will still have an extremely low valuation of only $1.04 per oz!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by GRG $50,000 cash for a two-month investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.