Shares of Golden Arrow Resources (CVE:GRG) were rising Monday afternoon after the company outlined a three-stage development plan for its Chinchillas silver project in Argentina designed to maximize value.
The main focus of the three-year plan is to advance the project to production stage. As a first step, it is currently incorporating the results from its 9,000 metre drilling program into the geological model to update the resource estimate after which financial models will be revised and a preliminary economic assessment will be issued.
Next, the company is planning to embark on further infill and other drill programs to upgrade resources to prepare the project for the feasibility stage, which would take about 12 months, Golden Arrow said.
Based on a positive report and financing, the company then intends to move to detailed engineering, permitting and mine construction.
The second stage will see further development of the Chinchillas South target area via more detailed drilling, while the third stage will focus on further resource expansion with the area surrounding the property "prospective and underexplored", said the company.
In light of the current down trend in the mining industry, Golden Arrow for the past months has focused its business strategy on lowering operating budgets, minimizing exploration drilling and sourcing out funding that was neglible to shareholder dilution paid off.
As a result, it used its 1 percent royalty owned on Yamana's Gualcamayo mine to allow it to focus on "very narrow" exploration, which produced the Chinchillas discovery.
The Vancouver-based precious and base metal explorer is focused in Argentina, and looks to attract partners to fund work on its mineral projects.
Shares of Golden Arrow added 6.3 percent to 25.5 Canadian cents, stretching year-to-date gains to 27.5 percent.