NIA's New Silver Stock Suggestion: GRG

Golden Arrow Resources (TSXV: GRG) currently trading for $0.91 owns the most extensive land package of silver exploration properties in all of Argentina. GRG's portfolio consists of nearly 30 Argentinian silver exploration projects and includes Chinchillas, which is located in the prolific Bolivian silver-zinc-tin belt and is only 30 kms southwest of Silver Standard Resources (SSRI)'s Pirquitas silver mine.

SSRI is one of the world's largest silver miners with a market cap of $1.07 billion and enterprise value of $970 million. The Pirquitas silver mine in Argentina is SSRI's flagship silver mine and produced a record 10.339 million oz of silver and 9.452 million lbs of zinc in 2015.

Pirquitas has turned SSRI into one of the world's largest producers of silver and the #1 producer of silver in all of Argentina, but it has a limited mine life. GRG's nearby Chinchillas has one of Argentina's largest silver resources, with 155 million measured/indicated silver equivalent ounces.

SSRI recently entered into a major joint venture with GRG and has become one of the largest GRG shareholders. Their agreement will allow SSRI to combine their Pirquitas silver mine with GRG's Chinchillas silver project. Following an initial 18-month period of pre-development activities that began in October of last year, GRG will receive 25% of the combined Pirquitas mine/Chinchillas project, with SSRI receiving the other 75%.

NIA estimates that half of SSRI's $970 million enterprise value is for their Pirquitas silver mine, valuing Pirquitas at $485 million. Based on Pirquitas being worth $485 million, we calculate an estimated valuation for GRG's Chinchillas silver project of USD$161.67 million or CAD$213.59 million. This would value GRG at $2.77 per share.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by GRG $50,000 cash for a two-month investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.