Golden Minerals Company (NYSE AMERICAN:AUMN) (TSX:AUMN) (“Golden
Minerals”, “Golden” or “the Company”) is pleased to announce
positive findings from a new resource estimate for the Yaxtché
deposit at its El Quevar silver project in the Salta Province of
Argentina.
In the third quarter 2017, the Company began a re-modeling
project designed to identify a smaller but higher-grade mineral
resource within the Yaxtché deposit, an area representing a
two-kilometer strike length located within the much larger
57,000-hectare El Quevar project. In support of this effort, the
Company retained Amec Foster Wheeler E&C Services, Inc, a Wood
Group PLC company (“Wood”), to complete an updated Mineral Resource
estimate in accordance with Canadian National Instrument 43-101
(“NI 43-101”). The estimate is based on the same drilling data as
the 2012 technical report prepared by RPMGlobal (formerly Pincock
Allen & Holt; “RPM”) but uses updated geologic controls and a
modeling approach designed to delineate the higher-grade
mineralization.
The 2018 El Quevar model was constructed using a hybrid approach
that combined the efficiency of implicit modeling with the
fine-tuning capabilities of probability-assigned constrained
kriging (“PACK”). Structural trends were first constructed to
define the orientation of the mineralization. These trends were
then imported into implicit modeling software to construct
wireframes that defined the limits of the silver mineralization.
PACK was then used to estimate tonnes and grades within the
wireframes through initially outlining the economic mineralization
using indicator blocks, and then estimating grade within the blocks
using ordinary kriging.
Results are as follows:
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Cut-off Ag(g/t) |
|
Tonnes (M) |
|
Ag Grade(g/t) |
|
Ag (M oz) |
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|
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|
|
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|
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Indicated |
|
|
|
|
|
|
|
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Sulfide |
250 |
|
2.63 |
|
487 |
|
41.1 |
|
Oxide |
250 |
|
0.30 |
|
434 |
|
4.2 |
|
Inferred |
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|
|
|
|
|
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Sulfide |
250 |
|
0.31 |
|
417 |
|
4.1 |
Notes:
- The independent Qualified Person who prepared the Mineral
Resource estimate is Gordon Seibel, a Registered Member of the
Society for Mining, Metallurgy and Exploration, RM SME, who is a
Principal Geologist with Wood.
- The effective date of the estimate is February 26, 2018.
Mineral Resources are estimated using the CIM Definition Standards
for Mineral Resources and Reserves (2014).
- There are reasonable prospects for eventual economic extraction
under assumptions of a silver price of $16.62/oz, employment of
underground, mechanized, room-and-pillar mining methods, and that
silver concentrates will be produced and sold to a smelter. Mining
costs are assumed to be $55/t. Concentrator and general and
administrative (G&A) costs are assumed to be $30/t and $20/t
respectively. Metallurgical recovery is assumed to be 88.5%.
- Reported Mineral Resources contain no allowances for hanging
wall or footwall contact boundary loss and dilution. No mining
recovery has been applied.
- Rounding as required by reporting guidelines may result in
apparent differences between tonnes, grade and contained metal
content.
Golden’s President and Chief Executive Officer, Warren M. Rehn,
notes, “We are pleased with the results of this
independently-prepared estimate, as it presents a potentially
viable mining opportunity for us in El Quevar’s Yaxtché deposit.
Potential to increase the size of the Yaxtché deposit remains, as
the deposit is open to the west. Additional high-grade silver
targets identified by drilling exist in several areas near Yaxtché.
We plan to expand on this new resource to enhance the potential
viability of a possible operation. We believe that recent and
continuing improvements in Argentina’s economic environment make
now an excellent time to further our exploration efforts at this
key property, in our efforts to unlock El Quevar’s value.”
Next Steps
In the next several months, Golden Minerals plans to proceed
with a Preliminary Economic Assessment (“PEA”) that will use the
new Yaxtché resource as a basis.
The Company plans to advance El Quevar as much as possible
within the limits of its current exploration budget, and remains
open to finding a partner to contribute to the funding of further
exploration and development.
Resource Estimate Information
Wood is an independent engineering consultancy. Mr. Gordon
Seibel, RM SME, a Principal Geologist with Wood, reviewed and
approved the portions of this press release regarding the new
Mineral Resource estimates and data verification.
The drill data supporting the Mineral Resource estimate were
collected between 2006 and 2011, and there has been no drilling on
the property since 2011. Qualified Persons from independent
engineering consulting firm Pincock Allen and Holt (PAH) and now
part RPMGlobal visited the site during the 2011 drill
program. PAH observed and interviewed Golden Minerals
personnel in the procedures of core handling, sampling, logging and
sample security that were performed at the Golden Minerals base
camp. PAH concluded that the drilling density, core
recovery, and drill hole location surveying were industry standard
and acceptable for use in resource estimation.
PAH also reviewed sample preparation procedures, assaying
methods and QA/QC protocols when all drill results were
available. PAH noted that overall the sample
preparation, analysis and security are industry standard and would
not introduce a general bias into resource estimation.
Wood independently compiled the assay data directly from the
assay laboratories and compared the data to the database supplied
by Golden Minerals which included all of the drill data that
had previously been verified by PAH. Wood considers the
database to be acceptable to support Mineral Resource
estimation.
The technical contents of this press release have been reviewed
and approved by Warren M. Rehn, M.Sc., a Qualified Person for the
purposes of NI 43-101. Mr. Rehn has over 33 years of mineral
exploration experience and is a QP member (01449QP) of the Mining
and Metallurgical Society of America. Mr. Rehn is President, Chief
Executive Officer and a Director of Golden Minerals Company.
The resource estimate is preliminary in nature and includes
Inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves.
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 Velardeña processing plants. It is also focused on evaluation
activities at its El Quevar exploration property located in the
Salta Province of Argentina.
Cautionary Note to United States Investors Regarding
Estimates of Indicated and Inferred Resources
We use certain terms in this news releases, such as “Indicated”
and “Inferred” resources, that are defined in NI 43-101; however,
these terms are not recognized under the SEC Industry Guide
7. Accordingly, the disclosures regarding mineralization in
this news release may not be comparable to similar information
disclosed by Golden Minerals in the reports it files with the SEC.
US investors are cautioned not to assume that any or all of
Indicated or Inferred resources are economically or legally
mineable or that these resources will ever be converted into
reserves. “Inferred mineral resources” have a high
degree of uncertainty as to their existence and it cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. In addition, the SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant “reserves” as
in-place tonnage and grade without reference to unit amounts.
U.S. investors are urged to consider closely the disclosure in our
Form 10-K and other SEC filings. You can review and obtain
copies of these filings from the SEC’s website at
http:www.sec.gov/edgar.shtml.
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 future activities at El Quevar, including the
timing of a PEA based on the new Yaxtché resource, the likelihood
of future expansion of the deposit, and the possibility of future
development. These statements are subject to risks and
uncertainties, including: changes in interpretations of geological,
geostatistical, metallurgical, mining or processing information,
unexpected variations in mineral grades, types and metallurgy;
fluctuations in silver metal prices; changes in political
conditions, in tax, royalty, environmental and other laws in
Argentina, and availability of sufficient financing to pursue
planned activities. 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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