GOLDEN, Colo., July 7, 2015 /CNW/ — Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) has released results from three exploration drill holes at its Celaya project in Guanajuato, Mexico.
Golden Minerals has completed an initial 2,200-meter, three-hole drilling program at its 6,200 hectare Celaya project located 45 kilometers (km) southeast of and on trend with the historic Guanajuato District. Results include the first known epithermal gold (Au) and silver (Ag) mineralization encountered beneath widespread clay-silica alteration on the claims comprising the Celaya project. Highest grade intercepts include 0.4 meters of 758 grams per tonne (g/t) Ag in drill hole CE15-03 and 1.1 meter of 7.4 g/t Au and 393 g/t Ag in drill hole CE15-05.
Complete drill results will be posted on the Golden Minerals website at www.goldenminerals.com.
The Company's target of exploration at the Celaya project is a Guanajuato-style silver and gold epithermal vein system. The drill program focused on an extensive area of clay-silica alteration that Company geologists interpreted to be the surface expression of an epithermal vein system at depth. The Company believes that the discovery of significant silver and gold values associated with banded epithermal veins approximately 500 meters vertically below the outcropping alteration confirms the exploration model and suggests the nearby presence of a mineralized system of possible economic interest.
The gold and silver-bearing intervals in drill holes CE15-03 and CE15-04 represent multiple vein structures interpreted to strike northwest and dip steeply to the southwest within a favorable corridor with a minimum width of 35 meters. The gold and silver-bearing interval in drill hole CE15-05 is interpreted to be a northeast trending vein structure which dips moderately northwest and is 190 meters southeast of the intercepts in drill holes 3 and 4.
The exploration model for Celaya is similar to that at Plata Latina's Naranjillo discovery, 10 km to the west. Recent drilling activity adjacent to the Naranjillo discovery by Fresnillo, PLC provides further indication of the prospectivity of the area.
Guanajuato District production source: Consejo de Recursos Minerales, 1992, Geological-Mining Mongraph of the State of Guanajuato, p. 59
Golden Minerals holds the 6,200 hectare Celaya project through its wholly owned subsidiary, Minera de Cordilleras SA de CV, which owns the Celaya 01 concession directly, one claim by lease, and two others via a purchase agreement.
Warren M. Rehn, President of Golden Minerals Company, stated, "The discovery holes at Celaya show that we are on the trail of an interesting and potentially important gold-silver system."
Review by Qualified Person and Quality Control
The technical contents of this press release have been reviewed by Warren M. Rehn, M.Sc., a Qualified Person for the purposes of Canadian National Instrument 43-101. Mr. Rehn has over 33 years of mineral exploration experience and is a QP member of the Society for Mining Metallurgy and Exploration.
To ensure reliable sample results, Golden Minerals uses a quality assurance/quality control program that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates and reference standards in each batch of samples. Core is photographed and sawn in half with one half retained in a secured facility for verification purposes. Sample preparation (crushing and pulverizing) is performed at an independent ISO 9001:2001 certified laboratory in Zacatecas, Mexico. Prepared samples are direct-shipped to an ISO 9001:2001 certified laboratory in Canada.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on operations at its Velardena Properties and the exploration of properties in Mexico and Argentina.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities legislation, including statements regarding drilling results at the Celaya project, whether a Guanajuato-style silver and gold epithermal vein system exists at or will be discovered at the Celaya project, the interpretation of Company geologists that the clay silica alteration focused on is the surface expression of an epithermal vein system at depth, whether the drilling results associated with the banded epithermal veins suggest the nearby presence of a mineralized system of possible economic interest, whether the Celaya exploration model is similar to that at Plata Latina's Naranjillo discovery; and whether Fresnillo's recent drilling adjacent to its Naranjillo discovery provides further indication of the prospectivity of the area. These statements are subject to risks and uncertainties, including: changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future exploration or analysis; new information from drilling programs or other exploration or analysis; reliability of metallurgical testing results and changes in interpretation based on processing results; whether the Celaya exploration model or the prospectivity of the area of the Celaya project in fact has any positive relation to Plata Latina's Naranjillo discovery or drilling on adjacent property; whether historical production in the Guanajuato District has any relation to or bearing upon the prospectivity of the Celaya project; whether future exploration at Celaya will be successful; whether a silver and gold epithermal vein system in fact exists at or whether the Company will discover such a system at the Celaya project; whether a mineralized system of possible economic interest that the Company believes is indicated by the reported drilling results actually exists or, if it does exist, will be discovered by the Company or be of economic interest; unexpected variations in mineral grades, types and metallurgy; fluctuations and continuing declines in silver and gold metal prices; increases in costs and declines in general economic conditions; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico, and financial market conditions. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2014.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations