See how this small company quickly became a prime takeover target (and one of the best stocks to buy) with a monster find in Argentina…
Despite silver trading near a 60% discount from its record high, many companies continue to advance their exploration projects forward.
In regions like South America, new discoveries are still being made during this volatile phase. In fact, companies operating in silver-rich countries including Peru and Chile encountered new silver mineralization as recently as last week.
Canada’s Sierra Metals Inc. (TSX:SMT) reportedly found high-grade, silver-lead-zinc ore at their Cachi Cachi mine in the Yauyos province of Peru.
Australian junior Red Gum Resources Ltd. (ASX:RGX) intercepted a promising copper-silver-gold zone at their Majada West mine located on the prolific Iron Oxide Copper-Gold (IOCG) Belt in northern Chile.
But although promising, these discoveries pale in comparison to the mammoth find that was reported in Argentina at the beginning of this month.
One Of The Largest Finds In Recent History
Argentina is one of the world’s top ten silver producing nations.
It’s also home to the fifth largest silver mine in the world, the 8.6 million ounce per year Pirquitas mine operated by Silver Standard Resources Inc. (TSX:SSO).
Although silver’s price slump has certainly hurt the industry in recent months, it’s not all doom and gloom in Argentina.
Best Stocks to Buy Now:
One miner in particular seems to have successfully embraced the old mantra of “Keep Calm and Carry On”… resulting in an historic breakthrough for both the company and the country. And that’s Golden Arrow Resources Corp. (TSX:GRG).
Having been involved in Argentina’s mining scene for two decades, the team behind the Canadian junior comes from an established pedigree.
CEO Joseph Grosso has been actively mining in Argentina since 1993, and his achievements are near legendary.
Most notably, he’s been credited with the discovery of the massive Gualcamayo gold-silver zone, which is now in production by Yamana Gold. He also discovered the Navidad silver deposit, which is held by Pan American Silver.
But it’s his most recent discovery in northwest Argentina that could be the crowning achievement of his long career.
According to Golden Arrow’s recent NI 43-101 resource estimate, at a cutoff grade of 50 g/t silver equivalent, GRG’s Chinchillas project showed an indicated resource of 7.2 million tons of near-surface ore, averaging 119 g/t silver, 0.5% zinc and 0.6% lead — for an estimated 33 million ounces of silver equivalent.
The total inferred resource at Chinchillas stood at 72 million ounces of silver equivalent, with the potential for even greater volumes should the zone prove to be open in all directions.
GRG’s head of corporate communications, Sean Hurd, even predicts there could be over 100 million ounces on the property.
With the near-surface accessibility, the Company estimates that an open-pit mine could be built for $200-250 million and have an operating life span of 13 years.
Whether or not GRG moves towards production remains to be seen, but there’s no denying that some of the industry’s biggest players are keeping a close eye.
Grosso’s tenure in Argentina as well as his track record in making projects worthy of acquisition by larger miners no doubt gives the Chinchillas huge takeover potential.
And in turn, this offers phenomenal upside for Golden Arrow in the months and years ahead.
“The light comes on when one makes a basic discovery and gradually expands it into a runaway giant,” says Grosso.
This giant has only just awakened.