GOLDEN, Colo., July 14, 2014 /PRNewswire/ -- Golden Minerals
Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX:
AUM) is pleased to announce it restarted mining at its Velardena
Properties on July 1, 2014.
Velardena was previously held in
care and maintenance after production was suspended in mid-2013 due
to depressed precious metals prices. The Company used the operating
down time to conduct a 9,000-meter drilling program and to develop
a new mining plan that indicates positive net cash flow from the
Velardena Properties after production is ramped up through the
second quarter 2015. Planning economics assume precious metals
prices of $20 per ounce silver and
$1,250 per ounce gold.
Golden Minerals has hired approximately 50 employees who are now
working at Velardena, including a
new General Manager, managers for both the mine and mill and
roughly 40 miners. The Company has scheduled workers for two
ten-hour shifts per day. Underground activity is currently focused
on driving a ramp to access the Terneras vein at deeper levels and
a crosscut to the San Mateo East vein, as well as stoping on the
San Mateo West and Roca Negra veins, where mined material is
removed from the mine in 20-ton trucks. The Company expects mining
of the Terneras vein to commence during the fourth quarter
2014.
The Roca Negra vein is sub-parallel to the Terneras vein and
about 50 meters to the north. The Company did not consider the Roca
Negra vein in its initial restart plan; however, based on recent
drill results now partially confirmed by underground drifting, the
Roca Negra vein should be an important and positive addition to the
mine plan. These recent drill results are from holes drilled to
test the portions of the Terneras and Roca Negra veins that Golden
Minerals will be able to access early in the mining sequence (with
the exception of TS-08, which intersects the eastern portion of the
Roca Negra vein).
Drill results not previously reported include significant gold
(Au) and silver (Ag) grades from the Roca Negra and Terneras veins.
Selected results include:
- TS-13 Roca Negra vein: 1.4 meters of 12.2 grams per tonne (gpt)
Au and 107 gpt Ag
- TS-15 Terneras vein: 0.9 meters of 5.5 gpt Au and 100 gpt
Ag
- TS-17: Roca Negra vein: 0.4 meters of 6.6 gpt Au and 3,860 gpt
Ag
- TS-18 Terneras vein: 0.8 meters of 7.6 gpt Au and 241 gpt
Ag
A table of selected drill results follows:
Drill Hole
|
From (m)
|
To (m)
|
Drill Width
(m)
|
True Width
(m)
|
Au (gpt)
|
Ag (gpt)
|
Vein
|
TS-06
|
211.90
|
212.30
|
0.40
|
0.31
|
7.98
|
93
|
Terneras
|
TS-08
|
256.65
|
257.25
|
0.60
|
0.59
|
2.73
|
128
|
Roca Negra
|
TS-13
|
167.00
|
168.37
|
1.37
|
1.12
|
12.20
|
107
|
Roca Negra
|
TS-14
|
124.93
|
125.84
|
0.91
|
0.73
|
1.53
|
51
|
Terneras
|
TS-15
|
66.84
|
67.71
|
0.87
|
0.56
|
5.54
|
100
|
Terneras
|
TS-16
|
6.15
|
6.62
|
0.47
|
0.46
|
4.00
|
21
|
Roca Negra
|
TS-16
|
32.50
|
33.41
|
0.91
|
0.88
|
1.13
|
90
|
Terneras
|
TS-17
|
4.50
|
4.90
|
0.40
|
0.34
|
6.61
|
3860
|
Roca Negra
|
TS-17
|
57.12
|
58.14
|
1.02
|
0.78
|
1.85
|
65
|
Terneras
|
TS-18
|
104.94
|
105.75
|
0.81
|
0.80
|
7.58
|
241
|
Terneras
|
Complete drill results will be posted on the Golden Minerals
website at www.goldenminerals.com.
Golden's Senior Vice President
of Exploration and Chief Geologist Warren
Rehn has spearheaded Velardena's drilling and restart planning
efforts during the last year. Rehn commented, "I am extremely
pleased with our team's dedication and successful execution to
date. We have employees in Mexico
who go well beyond the call of duty in performing their roles, and
we are proud to count them as team members. We are delighted to
have restarted mining slightly ahead of schedule and we look
forward to successfully driving Velardena to profitability."
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 Chihuahua or 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 restarting
operations at its Velardena Properties, the advancement of its El
Quevar advanced exploration property in Argentina, and the exploration of properties
in Argentina and Mexico.
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 legislation,
including statements regarding the expected timing of the planned
start of mining in the Terneras vein; the focus on driving access
ramps, crosscuts and stoping; the anticipated timing of ramp
up; veins planned to be mined; anticipated positive net cash
flow at the Velardena Properties and incremental cash for the
Company at current silver and gold prices after production is
ramped up through the second quarter 2015; and drill results from
the Roca Negra Vein and its anticipated positive contribution to
the mine plan. These statements are subject to risks and
uncertainties, including delays in mining or commencing processing
or the ramp-up of same; mining or processing changes or problems;
mining or processing costs in excess of those anticipated;
unexpected variations in mineral grades, types and
metallurgy; fluctuations in silver, gold, zinc and lead prices;
technical, permitting, mining, metallurgical, recovery or
processing issues; problems that delay or reduce underground mine
and stope construction; failure of mined material to meet
expectations; failure to meet expectations regarding mining and
processing rates, saleable metals, cash costs, cash flow at the
Velardena Properties and incremental cash for the Company; failure
of veins to be mined to meet expectations, including failure of
drill results from the Roca Negra vein to be indicative of its
contribution to the mine plan or of the Roca Negra vein to make a
positive contribution to the mine plan; higher than anticipated
cash outlays to resume operations; fluctuations in costs and
general economic conditions; results of additional drilling at
Velardena; changes in geological,
geostatistical and other interpretations of the information from
drill programs; reliability of metallurgical testing results and
changes in interpretation; unfavorable interpretations of geologic
information; changes in political conditions, tax, environmental
and others laws in Mexico; 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
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company