Golden Minerals Company (AUM.TO), which fell 7% Thursday, provided an update for the Velardena Operations, located in Durango State in Mexico.
Golden Minerals said it is continuing to ramp up production at the Velardena Operations to reach a combined oxide and sulfide plant throughput of 850 tonnes per day during the second quarter of 2013. Capital and mine development costs for the 12 month period ending June 30, 2013 are estimated to be between $15 million and $20 million, including approximately $5 million for mine development. At 850 tonnes per day, the company anticipates an annualized production rate of payable metals in the range from 1.0 to 1.2 million ounces of silver and 12,000 to 16,000 ounces of gold, resulting in 1.6 to 2.0 million ounces of silver equivalent (using a ratio of 50:1, gold to silver). At 850 tonnes per day, the Velardena Operations are expected also to produce approximately 4.0 million pounds of combined payable lead and zinc.