Golden Arrow Resources’ San Pietro copper-gold-cobalt mineral deposit is surrounded by major production and is advancing development.
Experienced resource investors keep a close eye on Golden Arrow Resources Corp. (GRG:V; GARWF:OTC). This is because resource investing is all about the people running the operation. The management and geological team – a member of the Grosso Group – have been involved in five significant mineral deposit projects.
So, when Golden Arrow announced that the company’s flagship project is now the San Pietro copper-gold-cobalt project in northern Chile, qualified ears perked up, including those of several major producers. The mineral deposit is sandwiched between Capstone Copper’s Mantoverde copper mine and the same company’s Santo Domingo development project.
Combining projects in Capstone’s Mantoverde-Santo Domingo District
Lying in the gap between the two projects is GRG’s San Pietro copper-gold-cobalt project, which has observed similarities in mineralisation to the Capstone project area. Chile is the world’s largest producer and exporter of copper, specifically in the north. Another four copper mines surround GRG’s San Pietro project and each are world-class mineral deposits that deliver copper globally.
Drilling commences in February at Golden Arrow’s 100%-controlled San Pietro project, which consists of 18,400 hectares – equivalent to an area of eight by eight miles squared. It has received 34,000 meters of drilling by prior operators, all before 2013. All of the core is accessible to GRG and is being logged and incorporated into the company’s database on the project area.
The timing appears to be excellent because the price of copper is rising, the price of gold is rising, and the price of cobalt is steady, and anticipated to rise with increasing EV battery demand.
Golden Arrow geological staff are getting excited about four specific mineral deposits and plans to drill multiple areas this year, starting with 2,500 metres in February and working up to 20,000 metres throughout the year. The four main zones are named Rincones, Radiss Norte, Rodeo, and Colla. Each area has been drilled earlier. Each mineral deposit shows excellent potential for copper, gold, and cobalt.
Rincones has received 47 drill holes already. The area demonstrates near-term resource potential and upside and will be among the first to be drilled by GRG. In particular, all four areas show grades of cobalt that are higher than the grade of the cobalt resource at Capstone’s Santo Domingo project in development, where Capstone is investing hundreds of millions of dollars to produce the cobalt.
Battery metals
Cobalt and copper are both battery metals. Cobalt is used in the cathode of lithium-ion batteries to extend the life of the battery and prevent overheating. Higher-quality EVs each use 12-25 pounds of cobalt, according to Reuters. Respected BMI – Benchmark Minerals Intelligence based in the UK – estimates that deficits in cobalt will start in 2024 and the metal will fall deeply into deficit by 2030.
Copper is highly conductive and imminently necessary for clean energy and decarbonisation. Most forecasters, inducing BMI, anticipate a doubling demand for copper by 2035. Copper miners have essentially no chance to keep up. GRG is applying the team’s substantial talent and experience across its mineral deposits to potentially increase the supply of both metals.
Leading mineral deposits
How did a tiny junior like Golden Arrow Resources get such a plum project as San Pietro, right in the middle of the copper giants? GRG has a market capitalisation and a market value of $10m and most of that is in cash.
Golden Arrow has had considerable success in Argentina. This included early involvement with three properties hosting major discoveries, one of which Golden Arrow monetised into a treasury that went on to fund exploration for GRG’s first major discovery – the Chinchillas mineral deposit. Chinchillas was later sold to SSR. Mining for cash and shares, which still fuel the company’s exploration efforts.
And, all the while – for thirty years – the group has demonstrated the utmost respect for local culture, local customs, the environment, and Argentine law and procedures. Now, with the geological team applying their expertise at San Pietro, expect excitement throughout 2023, starting next month.
We suggest that the opportune speculative investor to review the company’s website, goldenarrowresources.com, and register for breaking news to follow the action.
