GOLDEN, CO, Apr 10, 2012 (MARKETWIRE via COMTEX) –Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM) (“Golden
Minerals” or “the Company”) is pleased to report first quarter 2012
results for the Velardena Operations that continue to reflect
significant operational improvements and the ramp up of production.
From January 1 through March 31, 2012, month over month during the
quarter, gold production increased by approximately 25% and silver
production increased by more than 40%.
First quarter 2012 payable production totaled 1,500 ounces of gold
and 95,000 ounces of silver, exceeding guidance by approximately 15%
for gold and 6% for silver. Silver equivalent production for the
quarter, calculated based on only gold byproducts (excluding zinc and
lead) and using a silver to gold ratio of 50:1, totaled 170,000
ounces. Also during the first quarter, the Velardena Operations had
payable base metals production of approximately 200,000 pounds of
lead and 275,000 pounds of zinc.
The following table shows actual precious metals production compared
to guidance for January through March 2012 and our previous guidance
for the remainder of 2012.
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Q1 2012 Q1 2012 Full Year
Guidance Actual Q2 2012 Q3 2012 Q4 2012 2012
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Production (payable metals)
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Gold (oz) 1,300 1,500 2,000 2,600 3,100 9,000
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Silver (oz) 90,000 95,000 150,000 230,000 270,000 740,000
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Since the merger with ECU Silver on September 2, 2011, Golden has
continued to make operational improvements at the Velardena
Operations, located in the State of Durango, Mexico. The Company’s
primary focus has been on improving head grade and optimization to
improve recoveries and product quality in both the oxide and sulfide
processing plants. Construction of a flotation circuit ahead of the
current oxide plant to improve recoveries of sulfides mixed with the
oxides is well underway, with projected completion in the third
quarter.
Engineering studies are also underway for the phased expansion, which
will consist of adding an additional ball mill, flotation cells,
tailings dam and concentrate handling equipment. The additional ball
mill has been purchased. The phased expansion is expected to increase
combined oxide and sulfide plant throughput to 1,300 tonnes per day
in early 2013, with annualized production estimated to be
approximately 2 million ounces of silver and 29,000 ounces of gold.
The Company now expects to complete an updated NI 43-101 compliant
resource estimate for the Velardena Operations during the second
quarter 2012. In line with the Company’s emphasis on the higher
classes of mineral resources (measured and indicated), management and
their qualified advisors have decided to narrow the definition of the
lowest resource class (inferred resources) to include only that
material meeting strict and readily-justifiable geostatistical and
conservative geologic criteria. Because of this, we expect to report
a smaller inferred resource base at Velardena compared to the
inventory carried in the past. Management and their advisors do not
believe that this stricter interpretation of inferred resources
reflects upon the quality of the resource at Velardena or the likely
longevity of the operations.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado,
primarily engaged in the ramp up and expansion of existing production
at the Velardena and Chicago Mines in Mexico and advancement of the
evaluation stage El Quevar project in Argentina.
Forward-Looking Statements
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 laws, including
statements regarding forecasts of production from the Velardena
Operations and the effects on such forecasts of development work,
mining and process improvements, operational changes, processing
facility improvements, planned phased expansion of the existing
sulfide plant and the timing and amount of the anticipated increase
in combined oxide and sulfide plant throughput and annualized
production; anticipated improvements in feed head grades, sulfide and
metal recoveries, and concentrate production and quality; anticipated
updates of resource estimates for the Velardena properties and the
timing thereof; anticipated reduction in the amount of inferred
resources at Velardena These statements are subject to risks and
uncertainties, including unexpected events at the Velardena
Operation, including lower than anticipated production or greater
than anticipated costs; variations in ore grade and relative amounts,
grades and metallurgical characteristics of oxide and sulfide ores;
delays or failure in receiving required government approvals or
permits; technical, permitting, mining, metallurgical or processing
issues; failure to achieve anticipated increases in production and
improvements in head grades, recoveries and concentrate production
and quality at the Velardena Operations; delays in or failure to
realize anticipated benefits of plant optimization efforts; timing
and availability of external funding on acceptable terms that may be
required to construct the planned sulfide plant; unfavorable
interpretations of geologic information; inability to complete the
phased expansion and anticipated throughput increase on time or at
all or failure to realize anticipated production and throughput
improvements from the phased expansion; unfavorable results of new
resource estimates; loss of and inability to adequately replace
skilled mining and management personnel; possible disputes with
customers or joint venture partners; delays in the arrival of or loss
of equipment being procured for the Velardena operation; development
of unfavorable information or conclusions regarding the economic or
technical aspects of the planned phased expansion of the Velardena
Operation, or interpretations of geologic information; volatility or
other changes in the U.S. and Canadian securities markets;
availability and cost of materials, supplies and electrical power
required for mining operations and exploration; fluctuations in
silver, gold, zinc and lead prices, costs and general economic
conditions; changes in political conditions, tax, environmental and
other laws, and diminution of physical safety of employees in Mexico.
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 Annual Report on
Form 10-K for the year ended December 31, 2011.
For additional information please visit
http://www.goldenminerals.com/ or contact:
