GOLDEN, Colo., May 6, 2014 /CNW/ – Golden Minerals Company (“Golden Minerals” or the “Company”) (NYSE MKT: AUMN) (TSX: AUM) is pleased to announce results from its recent drilling program conducted at the Velardena Properties located in the State of Durango, Mexico. Mining operations at Velardena were suspended in June 2013 in response to the decline in precious metals prices, and drilling and analysis have subsequently been conducted in support of creating a restart plan that would result in cash flow-positive operations. Since January 2014, the Company has drilled 37 underground core holes totaling approximately 8,000 meters. Several additional holes are being drilled to infill and confirm mineralized characteristics of the Terneras vein, one of the veins that would be mined if the Company recommences mining at the Velardena Properties.
The Company has focused 2014 drilling on the Terneras and San Mateo vein systems in areas located outside the currently-defined Canadian National Institute NI 43-101 compliant resource. To management’s knowledge, this program represents the first known drilling of the Terneras vein system sulfides in the area below the historic workings. The Company has also targeted drilling on the widest and highest grade veins in the Santa Juana vein system to verify depth continuity on the A4 and F1 veins.
Notably, results in the Terneras and San Mateo vein systems show significantly lower levels of arsenic than levels seen in the Santa Juana vein system that was the focus of previous mining activity. Preliminary metallurgical results from the 2014 drilling program suggest that these lower arsenic ores may yield improved payment terms for the Company’s concentrates than those previously obtained. The Company has begun metallurgical testing designed to validate characteristics of the concentrates that could be processed from Terneras and San Mateo sulfide mineralization and evaluate potential sales terms and profitability from future mining at the Velardena Properties.
Based on these encouraging results and pending final metallurgical tests, the Company is evaluating a restart of mining with a focus on the Terneras and San Mateo veins utilizing narrow vein mining techniques. Precious metals prices will be taken into account in determining the viability of a restart plan. The Company expects to complete this evaluation around mid-year 2014.
Significant intercepts from the 2014 drilling program include:
San Mateo vein system
- 7.4 grams per tonne (gpt) gold (Au) and 359 gpt silver (Ag) over 0.8 meters (m)
- 14.0 gpt Au and 49 gpt Ag over 1.0 m
- 9.8 gpt Au and 906 gpt Ag over 0.8 m
- 7.4 gpt Au and 374 gpt Ag over 0.9 m
- 17.3 gpt Au and 370 gpt Ag over 0.8 m
- 8.9 gpt Au and 374 gpt Ag over 1.0 m
- 40.6 gpt Au and 736 gpt Ag over 0.5 m
- 14 gpt Au and 30 gpt Ag over 0.4 m
- 8.1 gpt Au and 303 gpt Ag over 0.8 m
Santa Juana vein system
- 7.8 gpt Au and 393 gpt Ag over 1.5 m
- 7.4 gpt Au and 455 gpt Ag over 0.4 m
A table of most significant results from the 2014 drilling program follows:
Au eq (gpt)
The Terneras vein drill results span a strike length of 540 meters from the intercept in drill hole TS-01 to the intercept in TS-07. The sulfide mineralization has been intersected over a vertical range of 130 meters in the recent drilling on the Terneras vein.
A map outlining drill and vein locations follows:
Complete drill results will be posted on the Golden Minerals website at www.goldenminerals.com.
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 is a QP member (01449QP) of the Society for Mining Metallurgy and Exploration. 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 efforts to create a new mining and processing plan for its Velardena Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico.
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 drill results and interpretations of drill results at the Velardena Properties, anticipated further drilling activities, the evaluation of and potential re-start of mining at the Velardena Properties, potential improved payment terms due to lower arsenic in the Terneras and San Mateo vein systems, the timing of the completion of an evaluation of the restart of mining. These statements are subject to risks and uncertainties, including results of additional drilling at Velardena; changes in geological, geostatistical and other interpretations of the information from drill programs; unfavorable interpretations of geologic information; unfavorable results of metallurgical testing designed to validate characteristics of concentrates that could be produced from Terneras and San Mateo sulfide mineralization, timing and results of the Company’s planned evaluation of the restart of mining at the Velardena Properties, unexpected variations in mineral grade, types and metallurgy; fluctuations in relevant metal prices; technical and permitting issues; increases in cost or other problems that might negatively affect the Company in conducting potential drilling and exploration activities and otherwise advancing the Velardena Properties; and financial market conditions. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Golden Minerals Company
Director of Investor Relations
SOURCE Golden Minerals Company
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