The release came on the day that Silver Standard exercised its option to opt into the project.
The pre-feasibility study envisages a satellite open pit mining operation at the Chinchillas project with ore processing undertaken using the existing mill and concentrator facility at Silver Standard's Pirquitas mine property, located some 42 kilometres west of Chinchillas.
The PFS project average annual silver-equivalent production of 8.4mln ounces over an eight-year period.
Golden Arrow highlighted “robust operating margins” based on cash costs of US$7.40 per payable ounce of silver sold over the life of the mine.
The post-tax net present value, using a 5% discount rate and metal prices of US$19.50 an ounce silver, 95 cents per pound of lead and US$1 per pound of zinc, was put at US$178mln.
The post-tax internal rate of return has been calculated at 29%.
The project's mineral reserves of 11.7mln tonnes comprised 58mln ounces of silver at a grade of 154 grams per tonne (g/t), 310mln pounds of lead at a grade of 0.90% and 386mln pounds of zinc at a grade of 0.60%.