GOLDEN, Colo., Dec. 23, 2014 /CNW/ -- Golden Minerals
Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX:
AUM) today announces its initial operational performance for the
Velardena mine restart in order to update the Company's
June 18, 2014 news release. The
Company restarted mining operations at Velardena on July 1, 2014 and milling operations on
November 3, 2014.
Mining has been conducted on the San Mateo and Terneras vein
systems as planned. The Company has mined additional material from
the Santa Juana vein system to augment grades as mining and
processing rates ramp up. Grades are improving as more
slusher stopes are put into production on the San Mateo and
Terneras vein systems and the inventory of lower grade material
resulting from stope construction is depleted. Based on the
grades recovered to date during the restart of mining operations at
Velardena, the Company now anticipates grades averaging
approximately ten percent lower for both gold and silver than
previously anticipated due to additional mining dilution.
Milling rates have averaged 204 tonnes per day in November 2014 and 280 tonnes per day in December
2014. Grades were low in November
2014 as material from stope access drifts and raises was
processed to test plant circuits that were refurbished as part of
the restart. Average grades in November were 1.3 grams per tonne
gold and 109 grams per tonne silver with silver equivalent
production estimated to be 25,000 ounces which is exclusive of
process inventory in the circuit that required build up. For
the first 20 days of December 2014,
the mill averaged 280 tonnes per day at average grades of 1.7 grams
per tonne gold and 114 grams per tonne silver.
The Company has commissioned an independent third party to
produce a Preliminary Economic Analysis ("PEA") in respect of
Velardena. This PEA is anticipated to be complete by the end of
February and the Company expects at that time to provide production
guidance for 2015.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden. The
Company is primarily focused on operations at its Velardena
Properties, the advancement of its El Quevar advanced exploration
project, and the exploration of properties in Mexico and Argentina.
Cautionary Note
The Company cautions that, as of the date hereof, it has not
based its production decision on a PEA or on any feasibility study
of mineral reserves demonstrating economic and technical viability
and, as a result, there may be an increased uncertainty of
achieving any particular level of recovery of minerals or regarding
the cost of such recovery. Historically, projects that proceed to
production without a feasibility study have a much higher risk of
economic and technical failure. Failure to achieve the anticipated
production rates and costs could have a materially adverse impact
on the Company's cash flows and future profitability. In addition,
the Company's production decision was not based on mineral reserves
and the Company cautions that mineral resources are not mineral
reserves and do not have demonstrated economic viability.
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 mining and processing activities at
the Velardena Properties, including anticipated gold and silver
grades of mined and processed material, anticipated dilution, the
planned preparation and timing of completion of a PEA, and the
anticipated timing of providing production guidance for 2015.
These statements are subject to risks and uncertainties, including:
changes in geological, geostatistical and other interpretations of
the information from drill programs and mining experience;
reliability of metallurgical testing results and changes in
interpretation; unfavorable interpretations of geologic
information; delays or problems in mining or processing or the
ramp-up of same at the Velardena Properties; mining or processing
problems; mining and processing costs in excess of those
anticipated; unexpected variations in mineral grades, types and
metallurgy; fluctuations in relevant metal prices; technical,
permitting, mining, metallurgical, recovery or processing issues;
problems that delay or reduce underground mine and stope
construction; operational changes or problems; failure of mined
material to meet expectations; failure of veins mined to meet
expectations; delays in completing the PEA or in providing guidance
regarding 2015 production; fluctuations in silver, gold, zinc and
lead prices, costs and general economic conditions; changes in
political conditions, in tax, environmental and others 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, 2013.
For additional information please visit
http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company