Golden Arrow Resources Corp. (CVE:GRG) shares surged on Wednesday after the company said it had submitted the environmental report for exploitation at the Chinchillas project to the mining authority in the province of Jujuy.
This report initiates formal permitting for mine development and is part of the Chinchillas project predevelopment activities financed by Silver Standard, in line with the proposed combined mining business with Silver Standard's Pirquitas mine announced last October.
The detailed environmental report is the main focus of permitting for mining projects in the province of Jujuy. The report includes a description of the expected environmental impacts of the proposed mining operation, a management plan for those impacts and a plan of action on environmental contingencies.
The environmental report is submitted for review by Jujuy's Provincial Environmental Management Unit, or UGAMP. The UGAMP is a multi-stakeholder group chaired by a technical appointee from the Mining Department which reviews and discuss the ER, and recommends approval or rejection to the provincial mining authorities.
Approval by UGAMP provides the needed social licence to obtain an exploitation permit.
"The filing of this report is a major step forward for the development of Chinchillas with Pirquitas, and we are confident that the stakeholder review will yield a positive outcome. We are now finishing the pre-feasibility studies and look forward to a decision from Silver Standard by the end of the year," said Brian McEwen, Golden Arrow vice-president of exploration and development.
Golden Arrow shares were up 10.9% at C$1.02 on Wednesday.