Golden Minerals Announces Start of New Drill Program at Santa Maria
September 07 2017 - 6:45AM
Golden Minerals Company (NYSE American:AUMN) (TSX:AUMN) (“Golden
Minerals”, “Golden” or “the Company”) is pleased to announce the
start of a new drill program at its Santa Maria silver and gold
project located near Santa Barbara in Chihuahua State, Mexico.
Photos accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/24eaa6a1-8c23-444a-afd4-e8a809e29f9dhttp://www.globenewswire.com/NewsRoom/AttachmentNg/7325cf52-1e01-4c12-ab1f-c9de953a630ahttp://www.globenewswire.com/NewsRoom/AttachmentNg/7dd493e5-b728-4b69-8993-07489bf3a407
The drill program targets extensions of the vein deposit
described in the previous Preliminary Economic Assessment (“PEA”)
and resource update reported March 30, 2017.
Drilling commenced August 25, 2017. Two
holes have been completed to date, SM17-01 and SM17-15, both with
visible mineralized intercepts. These two holes bracket the western
and eastern limits of the strike extent of the vein currently being
tested. Assay results are pending and initial results are
expected to be available early in the fourth quarter 2017.
Golden Minerals recently acquired the right to
purchase claims that cover the eastward extension of the Santa
Maria vein, as reported in August 2017. The new claims
provide a 600 meter potential extension to the strike length of the
vein system and add substantial downdip expansion potential.
Surface exposures of the vein on the new claims have yielded values
of silver and gold over potentially minable widths of a magnitude
similar to the existing resource grade.
The drill program now underway is designed to
expand the current resource by drilling at least eight holes
totaling 1,500 meters along 400 meters of the projected strike
extension of the vein system adjacent to and east of the existing
resource. Golden has begun this drill program with the goal
of at least doubling the size of the existing resource.
Santa Maria Mineral Resource Estimate
Dated March 30, 2017
Indicated and Inferred mineral resource
estimates as previously reported and dated March 30, 2017 for Santa
Maria are shown as follows:
Classification |
Cutoff Grade |
Tonnes |
Ag g/t |
Au g/t |
AgEq g/t |
Ag toz |
Au toz |
AgEq toz |
Dilution% |
RecoveredAgEq g/t |
(M) |
(k) |
(M) |
Indicated |
175 |
180,000 |
304 |
1.4 |
404 |
1.73 |
8.1 |
2.31 |
10 |
% |
Inferred |
175 |
120,000 |
343 |
1.0 |
411 |
1.37 |
3.9 |
1.64 |
19 |
% |
Notes: |
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(1)
Mineral resources are reported as diluted Tonnes and grade; |
(2) Cutoff
grade and Ag equivalent calculated using metal prices of $17.30 and
$1,222 per troy ounce of Ag and Au with a ratio of 70.6:1, the
three year trailing average as of the end of December 2016; |
(3) Cutoff
applied to diluted Ag equivalent blocks grades using recoveries of
90% and 80% Ag and Au; |
(4)
Reported indicated mineral resources are equivalent to mineralized
material under SEC Industry Guide 7, inferred mineral resource is
not a recognized category under SEC Industry Guide 7; and |
(5) Columns may not total due to rounding. |
Property Title and Ownership
Golden has the right to acquire the Santa Maria
property under an option agreement that requires approximately $1.4
million more in payments over the next four years, a portion of
which will be subject to a two percent Net Smelter Return royalty
on production.
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.
Cautionary Note to U.S. Investors
concerning Estimates of Mineral Resources
This press release uses the terms “mineral
resources”, “indicated mineral resources” and “inferred mineral
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 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 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 SEC’s Industry Guide 7,
does not indicate “reserves” by SEC standards. We cannot be certain
that any deposits at the Santa Maria project 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
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended, and applicable Canadian securities
legislation, including statements regarding expectations for the
Santa Maria drill program, including expected timing of initial
drill results, expansion potential for the existing resource, and
additional possible East extension, estimates of mineral resources
for the Santa Maria project, and other expectations regarding the
Santa Maria project, including title and ownership matters. These
statements are subject to risks and uncertainties, including:
changes in interpretations of geological, geostatistical or
metallurgical information; unexpected variations in mineral grades,
types and metallurgy; fluctuations 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 SEC by Golden Minerals,
including the Company’s Annual Report on Form 10-K for the year
ended December 31, 2016.
SOURCE: Golden Minerals Company
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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