Slide 1: Chinchillas Silver-Lead-Zinc Deposit Technical Update
August 28, 2014 Chinchillas Silver-Lead-Zinc Deposit GROSSO GROUP MEMBER COMPANY Technical Update
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This Presentation contains “forward-looking statements” within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned explo
Slide 3: Chinchillas Silver Project Overview
Chinchillas Silver Project Overview New expanded resource estimate includes: Indicated Resource: 72.3 Moz Ag / 95.9 Moz Ag Eq (24.6 Mt @121g/t Ag, 0.65% Pb, 0.31% Zn) Inferred Resource: 40.2 Moz Ag / 68.7 Moz Ag Eq 22.0 Mt @ 57g/t Ag, 0.61% Pb, 0.68% Zn PEA provides baseline value:
Slide 4: Chinchilla and Chinchilla 1 Properties
Chinchilla and Chinchilla 1 Properties GRG.V 4
Slide 5: NI 43-101 Resource Statement
NI 43-101 Resource Statement Mineral Resource Statement for the Chinchillas Project, August 29th 2014by Kyle Howie, MAIG, Bruce Davis, FAusIMM, Bruce Smith MAusIMM Resource Class/Zone Tonnage Ag Pb Zn Ag Eq Ag Pb Zn Total Ag Eq (Mt) (g/t) (%) (%) (g/t) (Moz) (Mlbs) (Mlbs) (MOz) Indicated Resources S
Slide 6: Mining Comparison
Mining Comparison Pirquitas (Silver Standard) Chinchillas 200m $NSR (Blocks) >= 0 • Favourable flat lying >= 20 >= 40 Ref: www.silverstandard.com, Sept 2013 corporate presentation geometry & near >= 50 >= 60 surface mineralization = >= 70 low strip ratio GRG.V 6
Slide 7: Attractive Mining Scenario
Attractive Mining Scenario ✔Open pit amenable Low strip ratio Mineralization starts at surface ✔Higher grade silver core in Silver Mantos Zone ✔Multiple flat-lying mineralized zones ✔Highly Altered Rock GRG.V 7
Slide 8: Infrastructure
Infrastructure PEA: Two all-season access routes 66 km High Voltage line upgrade required; Access to water from local and regional wells Thickened tailings to be stored in lined impoundment built from mine waste rock OTHER ITEMS Communications available Other existing precious/metal
Slide 9: PEA & Metallurgy
PEA & Metallurgy ✔ High recoveries of silver, lead & zinc (bench scale testing) ✔ Standard flotation methods ✔ Chinchillas to produce 2 separate saleable concentrates: silver-bearing lead, and zinc Lead Concentrate Recovery Zinc Concentrate Recovery Assumptions Assumptions Ore_1 (MAN) Recovery Conce
Slide 10: PEA Model Parameters
PEA Model Parameters Summary of Parameters Unit Processing rate tpd 6000 Strip Ratio 2.2:1 Average Annual Silver Production Moz 5.4 Total Ag produced Moz 64.5 Average Ag grade g/t 86.1 Average Ag recovery (Pb Con) % 85% Life of Mine years 12 Total Unit operating cost $/t feed $27.96 Total Unit cash
Slide 11: PEA Cost Summary
PEA Cost Summary Capital Costs including 25% Contingency (US$ M) Pre-production Capital $202.3 (Includes pre-stripping, mining capital costs, process plant, infrastructure) Sustaining Capital over life-of-mine $56.8 TOTAL CAPITAL $259.1 Unit Operating Cost Assumptions Unit Cost US$/t feed Mining – O
Slide 12: PEA Cash Flow & Sensitivity
PEA Cash Flow & Sensitivity Summary of Results Before Tax After Tax NPV 0% (millions) $451.4 $289.7 NPV 5% (millions) $255.3 $153.0 NPV 8% (millions) $177.5 $ 98.5 IRR 22.4% 17.5% Payback period (years) 3.6 3.8 Silver Price Per Pre-tax Pre-tax IRR After-tax After-tax After-tax Payback Ounce NPV8% NP
Slide 13: Chinchillas Path to Feasibility
Chinchillas Path to Feasibility Goal is to continue rapid advancement, and move to a Feasibility Study stage 2012 2013 2014 2015 2016 Property Acquisition Social/Enviro Studies Phase I Drilling Phase II Drilling Metallurgy Resource Estimate PEA Phase III Drilling Resource Update PEA Update Infill
Slide 14: Growth Strategy
Growth Strategy ─ Baseline resource/PEA Completed ─ Recent resources expansion, PEA update ─ 16-20,000 m infill program will upgrade resource categories and provide possible expansion ─ Subsequent programs will target Chinchillas South which has potential for 100 to 160 mt grading 32 to 40 g/t silve
Slide 15: Chinchillas – A low risk opportunity
Chinchillas – A low risk opportunity Chinchillas provides investors with the potential for near term production at anticipated low capital and operating costs. CATEGORY RISK COMMENTS Resource LOW Good potential that resource will increase significantly and be converted to reserves with up- side pote
Slide 16: Capital Structure
Capital Structure Shares Issued 40,823,655 Warrants 0 Options (avg price = $0.36) 5,685,000 Fully Diluted 46,508,655 Market Capitalization $8,164,731 Cash and cash equivalent $3,486,700 Ownership (insiders/friends/family) 52% No prior financing overhang GRG.V 16
Slide 17: Contact
Contact Corporate Head-Office: Suite 709, 837 W Hastings St Vancouver, BC, Canada V6C 3N6 Telephone: 604 687 1828 Toll free: 1 800 901 0058 info@goldenarrowresources.com www.goldenarrowresources.com GRG.V 17
Slide 18: Appendix A - A Visionary
Appendix A - A Visionary Mr. Joseph Grosso is a respected entrepreneur with extensive international business experience having operated for decades in North/South America as well as in various European and Asian countries. Of Italian descent and fluent in Italian, English and Spanish, Mr. Grosso liv
Slide 19: Appendix B - Key Management
Appendix B - Key Management BRIAN McEWEN PGeol. - VP Exploration & Development Mr. McEwen is a professional geologist with more than 30 years of exploration and production experience in open-pit and underground mining projects and operations. The extent of his experience is global in managing numero
Slide 20: Pioneering Exploration In Argentina
Pioneering Exploration In Argentina 1993: 2013: A Mining A Mining Vision Reality Argentine discovery Grosso Group discovery Grosso Group property 2 GRG.V 0 20
Slide 21: Appendix C – Option Terms
Appendix C – Option Terms Chinchillas Option Terms Golden Arrow may acquire a 100% interest in the Chinchillas project by making the cash payments to the vendor laid out in the table below: Timing Cash Payments ($US) On Signing $20,000 PAID By January 2012* $80.000 PAID By July 2012 $150,000 PAID By