Golden Arrow Resources Corporation (CVE:GRG) (OTCQB:GARWF) said Tuesday that its joint venture partner, Puna Operations Inc, has reported its annual and fourth quarter 2018 operational results, as well as provided 2019 guidance for the Chinchillas silver, lead and zinc project in Argentina.
The Chinchillas operation, which is in the country’s Jujuy Province, was developed in collaboration with SSR Mining. Golden Arrow Resources holds a 25% share of Puna Operations Inc, a joint venture company operated by SSR Mining.
"Puna had a pivotal year in 2018, with the first commercial production from Chinchillas coming on stream," said Joseph Grosso, Golden Arrow chairman and chief executive officer.
"We applaud our operating partner for its steady achievements at the project and look forward to Puna reaching the 2019 guidance of six to seven million ounces of silver produced."
READ: Golden Arrow Resources kicks off commercial production at its silver, zinc and lead mine in Argentina
According to the release by SSR Mining, in 2018, Puna Operations produced a total of 3.7 million ounces of silver, 8.8 million pounds of zinc and 3.1 million pounds of lead. Silver sold for the year totalled 3.8 million ounces.
In December, ore was sourced exclusively from Chinchillas and achieved a 3,605 ton-per-day milling rate.
Puna is expected to produce between 6.0 and 7.0 million ounces of silver at cash costs of between $8 and $10 per payable silver ounce sold.
As previously announced, the completion of certain Chinchillas project infrastructure carries over into 2019 with remaining investment of approximately $9-million expected to be incurred in the first quarter. The project remains on budget.
The Vancouver-based explorer has a history of success in identifying, acquiring and advancing precious and base metal discoveries.
Shares dipped 1.6% to C$0.30 in Canada, while US-listed shares dipped 3.4% to US$0.23 on the OTC Markets.