Disclosure: Golden Arrow Resources Corporation has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
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Price Performance (1-year)
Portfolio Summary
Advancing the San Pietro project in Chile, and four early-stage exploration projects in Argentina, covering over 125,000 hectares
Optioned two out of four projects in Argentina
San Pietro IOCG Project (Chile): Maiden Resource Estimate
A copper-gold-iron-cobalt project in a prolific mining district in Chile, hosting multiple major iron-copper-gold deposits. Situated between three copper projects operated by Capstone Copper, including an operating open-pit mine
San Pietro’s tonnage and copper-gold grades are comparable to those of neighboring projects. Potentially open-pittable resources totaling 4.4 Blbs CuEq, representing significant tonnage, at a relatively low grade
The maiden resource estimate was based on 83 holes/32,733 m. Resources are spead across two deposits: Rincones and Colla
We believe there is significant resource expansion potential as both Rincones and Colla remain open in multiple directions. In addition, the current estimate does not include five drill-ready targets (Mariposa, Rodeo, Radiss Norte, Noemi, and Lolita Norte), and 50% of the project area remains untested
The company is planning a phase three drill program in Q3-2025 to explore multiple underexplored targets, and perform infill drilling within the resource area, aiming to potentially identify higher-grade zones, and upgrade the current resource estimate to measured and indicated categories.
Planning a drill program in H2-2025
Financials
Subsequent to Q3-2024, GRG closed a $0.78M equity financing
GRG is planning a $20M equity raise to fund its upcoming drill programs
FRC Valuation and Rating
As a result of the maiden resource, we are introducing our fair value estimate in this report. GRG is one of the most undervalued juniors on our list of comparables
GRG is trading at just $0.005/lb vs the sector average of $0.02/lb. Applying the sector average EV/lb of $0.016 to San Pietro’s maiden resource estimate, we arrived at a comparables valuation of $0.21/share
We are introducing our rating of BUY and fair value estimate of $0.21 share. GRG has significantly boosted the appeal of its San Pietro project with a promising maiden resource estimate. The project's open-pittable design and resource expansion potential are key advantages. Given its current undervaluation relative to peers, and the likelihood of M&A activity in a strong copper market, we anticipate increased market attention on the stock.
Risks
We believe the company is exposed to the following key risks (not exhaustive):
