Mining Co. Starts Field Work in Chile Offers High Investment Leverage Potential
With four priority targets identified, Canadian explorer Golden Arrow Resources Corp. is conducting its initial exploration program at its newly acquired copper-gold-cobalt property, noted a Goldletter International bulletin, and also explains why it believes the company is undervalued.
Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE) kicked off its initial exploration at the San Pietro copper-gold-cobalt project in Chile and continues logging historical drill core data on the project, reported Marino Pieterse, publisher and editor of Goldletter International, in a June 16 Investment Alert. The company purchased the project from Sumitomo Metal Mining Chile in March for cash consideration of US$3.35 million.
Over the next six months, the British Columbia-based exploration company plans to carry out detailed surface mapping and sampling, trenching, and updated geophysics work at San Pietro, now its flagship project, beginning at the Rincones target.
“The 2022 work program will work toward a resource delineation program at Rincones while continuing to evaluate and advance other areas of the property,” Pieterse wrote.
Previous owners of San Pietro carried out nearly $15M worth of exploration work there. Rincones was the primary focus of historical exploration, “with multiple drill holes returning assays with significant copper, gold and cobalt values,” Pieterse noted. One highlight intercept from that work is 28 meters (28m) of 1.14% copper, 0.12 grams per ton gold, and 335 parts per million of copper.
Golden Arrow identified three additional targets by compiling and analyzing historical data from 34,000m of drilling, 1,000-plus surface samples, and numerous geophysical surveys. The targets are Colla, 2.3 kilometers (2.3 km) southwest of Rincones; Rodeo, 7.5 km northwest of Rincones; and Radiss Norte, due north of Rincones.
Pieterse reiterated that San Pietro is an 18,448-hectare project in Chile’s Atacama region and noted that “there is excellent mining infrastructure in the area.” The project is flanked by two iron oxide-copper-gold projects owned by Capstone Copper, Santo Domingo immediately adjacent to the east and Mantos Verde 10 km to the west.
Pieterse also stated that he believes Golden Arrow is currently undervalued with a market valuation of US$13.9 million (CA$18 million). He noted that the company had total assets of CA$12.5 million in cash and cash equivalents as at March 31, 2022, “as well as expecting promising results from several planned drilling programs this year, besides the San Pietro Copper-Gold-Cobalt Project, including the Flecha de Oro project and its more than 180,000 hectares of properties for Joint Ventures in Argentina.”
“Golden Arrow, in my view, is offering a high investment leverage potential,” he added.
Pieterse’s price target on Golden Arrow is CA$0.50 per share; the stock is currently trading at around CA$0.15 per share.
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