The JV was formed in May last year by combining Golden Arrow's new Chinchillas project with the mature Pirquitas mine infrastructure held by SSR, creating a synergistic partnership that would result in high net payback for both parties, they said.

The project remains on budget and on schedule to support sustained delivery of ore to the Pirquitas mill in the fourth quarter of this year, Golden Arrow reports.

SSR said recently the second quarter saw increased activities in both pre-stripping and construction, with new mine personnel being recruited and contractors mobilised at both Pirquitas and Chinchillas.

Connection to the Pirquitas substation and installation of new transformers at Chinchillas is expected to be completed during the current quarter.

During the second quarter, the Puna operation produced one million ounces of silver, for a total of 1.9 million ounces produced in the first half, exceeding the group's silver production guidance of 1.6 million ounces. Cash costs came in at US$14.73/oz of silver sold.

SSR's attributable share of silver from the opersation in the quarter was about 716,000oz, with the 284,000oz balance attributable to Golden Arrow.

Exploration to expand Puna resources continues, including a 2,400m drill programme at Pirquitas targeting mineralisation to supplement underground resources.

Golden Arrow closed 6.4% higher Friday at C50c a share, having dropped 28.5% year to date. It has a market value of C$51 million. SSR, with a market valuation of C$1.36 billion, also closed in the green Friday, up 2.52% at C$11.37 a share.