GOLDEN, Colo., Dec. 16, 2016 /CNW/ -- Golden Minerals
Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN and
TSX: AUM) is pleased to provide an update on its recent exploration
property activities and the Velardena oxide plant lease.
Highlights
- Performing additional metallurgical testing at Santa Maria, prior to completing an updated
resource estimate and issuing a Preliminary Economic Assessment
("PEA") in the first quarter 2017
- Completed a 2,080-meter drill program at the Rodeo project
during the fourth quarter 2016; results to date are encouraging and
a resource estimate is in preparation for release in Q1
2017
- Lease of Velardena's oxide
mill to Hecla Mining continues to perform as expected, with net
cash of $4.5 million expected for the
full year 2016; Hecla has
exercised its option to lease the mill through mid-2017 and has the
right to extend the lease through 2018
Santa Maria
At the Santa Maria mine in
southern Chihuahua, Mexico, the
Company has continued with metallurgical testing of sulfide vein
material in the fourth quarter 2016. Metallurgical recoveries at
the third party sulfide flotation mill used to process the
Company's 7,500 tons of bulk samples averaged approximately 73
percent for silver and 50 percent for gold from partially oxidized
sulfide vein material. The Company expects recoveries to improve in
the sulfide vein material it is now testing, which exhibits less
oxidation than the previous bulk samples. If Golden Minerals were
to begin mining at Santa Maria, it
would expect to mine and process sulfide material which is less
oxidized and similar to that now being tested. The Company intends
to defer updating its resource estimate and completing a PEA until
it receives results of these additional tests and incorporates them
into the project evaluation.
Rodeo
In the fourth quarter 2016, Golden Minerals completed a
2,080-meter core drilling program at the Rodeo gold project located
approximately 80 kilometers west of the Velardena Properties in
Durango State, Mexico, at a cost
of $0.4 million. The Company has
defined a gold and silver bearing epithermal vein and breccia
system with encouraging gold and silver values exposed at the top
of a northwesterly-striking ridge and dipping to the northeast.
Previous work at Rodeo by other mining companies has shown the
mineralized system to be exposed at surface over about one
kilometer of strike length. The Company is preparing a resource
estimate for Rodeo, which it expects to release during the first
quarter 2017. If the Company discovers a deposit with sufficient
tonnage and grade, with metallurgical recoveries, costs and other
characteristics to support mining, the location of the deposit
could make it amenable to open pit mining, with material trucked to
the Velardena oxide plant for
processing after the Hecla lease
terminates.
Velardena Oxide Mill Lease
The lease of the Company's oxide mill to Hecla Mining continues
to perform as expected and Golden Minerals expects to receive
approximately $4.5 million in net
cash flow under the terms of the lease in 2016. Hecla has secured the right to use the mill
through December 2018, in conjunction
with agreements reached in the third quarter 2016 that permit
Hecla to expand the tailings
impoundment at their cost, while preserving flexibility for future
tailings expansions. Hecla
exercised its right to extend the initial 18-month term for six
additional months, until June 30,
2017, and presently has the right to extend the lease term
for an additional 18 months, until December
31, 2018.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on acquiring and
advancing mining properties in Mexico with emphasis on areas near its
Velardena processing plants.
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 expected Santa Maria metallurgical test results,
planned evaluation of those results planned timing for a
resource estimate update and completion of a PEA for Santa Maria and expected mining and processing
capabilities at Santa Maria;
expected Rodeo drill results, whether such results and other
factors will make the deposit amendable to open pit mining, and the
planned timing for a resource estimate for Rodeo; and expectations
regarding the oxide plant lease including anticipated net cash
payments. These statements are subject to risks and uncertainties,
including: unfavorable or less favorable than anticipated results
from exploration at the Santa
Maria or Rodeo properties and whether we will be able to
advance these exploration properties; potential delays in our
exploration activities, including evaluation of drill results,
resource update and preparation of a PEA at the Santa Maria project, or other activities to
advance properties towards mining resulting from environmental
events or permitting delays or problems, accidents, problems with
contractors, disputes under agreements related to exploration
properties, unanticipated costs and other unexpected events;
increases in costs and declines in general economic conditions;
inability to raise external financing on acceptable terms or at
all; 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, 2015.
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