GOLDEN, Colo., April 20, 2015 /CNW/ -- Golden Minerals
Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the
Company") announces the results of Canadian National Instrument
43-101 ("NI 43-101") compliant mineral resource estimates for
deposits at the Santa Maria Mine and the Los Azules Mine
properties. Both properties are located in southern Chihuahua
State, Mexico within 30 kilometers
of the town of Hidalgo del Parral near the Parral mining
district.
The Santa Maria vein system is
on average a two-meter wide epithermal silver (Ag) – gold (Au)
deposit hosted in Parral Formation calcareous sedimentary
rocks. Mineral resources were estimated based on 125
composited channel samples and 2,900 meters of drilling in 13 holes
over a strike length of 355 meters and down dip depth of 155
meters. Previous mining activities on the Santa Maria property included completion of a
decline to the 75 meter level which is accessible by motorized
equipment.
Indicated and inferred mineral resource estimates as at
April 20, 2015 for Santa Maria are shown in the following
table:
|
Cut-off
|
Mineral
|
Tonnes
|
Silver
Oz
|
Gold
Oz
|
Silver
|
Gold
|
|
SilverEq
|
GoldEq
|
Grade
|
Type
|
x(000)
|
x(000)
|
x(000)
|
(g/t)
|
(g/t)
|
Oz
|
Oz
|
AgEq
(g/t)2
|
|
|
|
|
|
|
x(000)3,4
|
x(000)3,4
|
Indicated
|
165
|
Oxide,
|
86
|
770
|
3
|
280
|
1.1
|
|
950
|
16
|
Mixed
&
|
Sulfide
|
Inferred
|
165
|
Oxide,
|
306
|
3,070
|
12
|
312
|
1.2
|
|
3,810
|
63
|
Mixed
&
|
Sulfide
|
|
Notes:
|
|
|
(1)
|
Mineral resources are
reported as diluted tonnes and grade to a minimum 0.8meter (m)
width with 0.2m dilution added
|
(2)
|
Cut-off grade has
been estimated using 90% recovery and 90% payable Ag and Au with
three year trailing average metal prices as of February 2015: US$24
per troy ounce Ag, US$1,420 per troy ounce Au
|
(3)
|
Equivalents
calculated at 60:1 silver to gold
|
(4)
|
Silver and gold
equivalent ounces are not additive
|
The US Securities and Exchange Commission (SEC) Industry Guide 7
mineralized material estimate for Santa
Maria totals 86,000 tonnes at silver and gold grades of 280
grams per tonne (gpt) and 1.1 gpt, respectively, using the cut-off
grade and metals prices provided in the table above.
The Los Azules vein system is on average a one-meter wide
epithermal Au-Ag quartz vein system hosted in Tertiary volcanic
rocks. Resources were estimated based on 206 composited
channel samples and 30 drill holes totaling 7,479 meters over a
strike length of 2,100 meters and a down dip extent of 350
meters. Previous mining on the Los Azules property
established underground access drifts that Golden Minerals
rehabilitated for access to the vein system.
Indicated and inferred mineral resource estimates as at
April 20, 2015 for Los Azules are
shown in the following table:
|
Cut-off
Grade
AuEq (g/t)2
|
Mineral
Type
|
Tonnes
x(000)
|
Silver Oz
x(000)
|
Gold Oz
x(000)
|
Silver
(g/t)
|
Gold
(g/t)
|
|
SilverEq
Oz
x(000)3,4
|
GoldEq
Oz
x(000)3,4
|
Indicated
|
2.8
|
Oxide,
Mixed &
Sulfide
|
78
|
390
|
8
|
155
|
3.0
|
|
840
|
14
|
Inferred
|
2.8
|
Oxide,
Mixed &
Sulfide
|
290
|
1,100
|
36
|
118
|
3.9
|
|
3,260
|
54
|
|
Notes
|
|
|
(1)
|
Mineral resources are
reported as diluted tonnes and grade to a minimum 0.8m width with
0.2m dilution added
|
(2)
|
Cut-off grade has
been estimated using 90% recovery and 90% payable Au and Ag with
three year trailing average metal prices as of February 2015:
US$1,420 per troy ounce Au, US$24 per troy ounce Ag
|
(3)
|
Gold and silver
equivalents calculated at 1:60 gold to silver
|
(4)
|
Gold and silver
equivalent ounces are not additive
|
The SEC Industry Guide 7 mineralized material estimate for Los
Azules totals 78,000 tonnes at silver and gold grades of 155 gpt
and 3.0 gpt, respectively, using the cut-off grade and metals
prices provided in the table above.
Golden Minerals has the right to acquire the Santa Maria and Los Azules properties under
separate purchase option agreements.
Jeffrey G. Clevenger, Chairman,
President and Chief Executive Officer of Golden Minerals, said,
"One of Golden Minerals' top priorities is to establish a
second set of mines in Mexico,
which could include Santa Maria,
Los Azules or other properties currently under evaluation.
Our first priority is to accomplish a smooth and profitable
restart of the Velardena Properties, which I am pleased to say is
going well."
Tetra Tech is an independent engineering firm that served as
principal author of the mineral resource estimate prepared on
behalf of the Company. Geoff
Elson is the independent Qualified Person from Tetra Tech
who reviewed and approved this press release.
An NI 43-101-compliant technical report will be filed on SEDAR
(www.sedar.com) and made available on the Golden Minerals website
within 45 days.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on mining its
Velardena Properties and the exploration of properties in
Mexico and Argentina.
Cautionary Note to U.S. Investors concerning Estimates of
Measured, Indicated and Inferred Resources
This press release uses the terms "indicated resources" and
"inferred resources" which are defined in, and required to be
disclosed by NI 43-101. We advise U.S. investors that these
terms are not recognized by the United States Securities and
Exchange Commission (the "SEC"). The estimation of measured
resources and indicated resources involves greater uncertainty as
to their existence and economic feasibility than the estimation of
proven and probable reserves. Mineral resources are not
mineral reserves, and U.S. investors are cautioned not to assume
that measured mineral resources or indicated mineral resources will
be converted into reserves. The estimation of inferred
resources involves far greater uncertainty as to their existence
and economic viability than the estimation of other categories of
resources. U.S. investors are cautioned not to assume that
estimates of inferred mineral resources exist, are economically
mineable, or will be upgraded into measured or indicated mineral
resources.
Cautionary Statement regarding Mineralized Material
"Mineralized material" as used in this press release, although
permissible under the United States Securities and Exchange
Commission's Industry Guide 7, does not indicate "reserves" by SEC
standards. We cannot be certain that any deposits at the
Santa Maria or Los Azules projects
will ever be confirmed or converted into SEC Industry Guide 7
compliant "reserves". Investors are cautioned not to assume
that all or any part of the disclosed mineralized material
estimates will ever be confirmed or converted into reserves or that
mineralized material can be economically or legally extracted.
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 estimates of measured, indicated and
inferred resources, estimates of mineralized material, and the
Company's priorities to establish a second set of mining assets.
These statements are subject to risks and uncertainties, including:
changes in interpretations of geological, geostatistical,
metallurgical, mining or processing information and
interpretations of the information resulting from future
exploration, analysis or mining and processing experience; new
information from drilling programs or other exploration or
analysis; reliability of metallurgical testing results and changes
in interpretation based on processing results;; unexpected
variations in mineral grades, types and metallurgy; fluctuations
and continuing declines in silver and gold metal prices; failure of
mined material or veins mined to meet expectations; increases in
costs and declines in general economic conditions; 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, 2014.
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