GOLDEN, Colo., July 14, 2014 /CNW/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) is pleased to announce it restarted mining at its Velardena Properties on July 1, 2014. Velardena was previously held in care and maintenance after production was suspended in mid-2013 due to depressed precious metals prices. The Company used the operating down time to conduct a 9,000-meter drilling program and to develop a new mining plan that indicates positive net cash flow from the Velardena Properties after production is ramped up through the second quarter 2015. Planning economics assume precious metals prices of $20 per ounce silver and $1,250 per ounce gold.
Golden Minerals has hired approximately 50 employees who are now working at Velardena, including a new General Manager, managers for both the mine and mill and roughly 40 miners. The Company has scheduled workers for two ten-hour shifts per day. Underground activity is currently focused on driving a ramp to access the Terneras vein at deeper levels and a crosscut to the San Mateo East vein, as well as stoping on the San Mateo West and Roca Negra veins, where mined material is removed from the mine in 20-ton trucks. The Company expects mining of the Terneras vein to commence during the fourth quarter 2014.
The Roca Negra vein is sub-parallel to the Terneras vein and about 50 meters to the north. The Company did not consider the Roca Negra vein in its initial restart plan; however, based on recent drill results now partially confirmed by underground drifting, the Roca Negra vein should be an important and positive addition to the mine plan. These recent drill results are from holes drilled to test the portions of the Terneras and Roca Negra veins that Golden Minerals will be able to access early in the mining sequence (with the exception of TS-08, which intersects the eastern portion of the Roca Negra vein).
Drill results not previously reported include significant gold (Au) and silver (Ag) grades from the Roca Negra and Terneras veins. Selected results include:
- TS-13 Roca Negra vein: 1.4 meters of 12.2 grams per tonne (gpt) Au and 107 gpt Ag
- TS-15 Terneras vein: 0.9 meters of 5.5 gpt Au and 100 gpt Ag
- TS-17: Roca Negra vein: 0.4 meters of 6.6 gpt Au and 3,860 gpt Ag
- TS-18 Terneras vein: 0.8 meters of 7.6 gpt Au and 241 gpt Ag
A table of selected drill results follows:
|
Drill Hole |
From (m) |
To (m) |
Drill Width (m) |
True Width (m) |
Au (gpt) |
Ag (gpt) |
Vein |
|
TS-06 |
211.90 |
212.30 |
0.40 |
0.31 |
7.98 |
93 |
Terneras |
|
TS-08 |
256.65 |
257.25 |
0.60 |
0.59 |
2.73 |
128 |
Roca Negra |
|
TS-13 |
167.00 |
168.37 |
1.37 |
1.12 |
12.20 |
107 |
Roca Negra |
|
TS-14 |
124.93 |
125.84 |
0.91 |
0.73 |
1.53 |
51 |
Terneras |
|
TS-15 |
66.84 |
67.71 |
0.87 |
0.56 |
5.54 |
100 |
Terneras |
|
TS-16 |
6.15 |
6.62 |
0.47 |
0.46 |
4.00 |
21 |
Roca Negra |
|
TS-16 |
32.50 |
33.41 |
0.91 |
0.88 |
1.13 |
90 |
Terneras |
|
TS-17 |
4.50 |
4.90 |
0.40 |
0.34 |
6.61 |
3860 |
Roca Negra |
|
TS-17 |
57.12 |
58.14 |
1.02 |
0.78 |
1.85 |
65 |
Terneras |
|
TS-18 |
104.94 |
105.75 |
0.81 |
0.80 |
7.58 |
241 |
Terneras |
Complete drill results will be posted on the Golden Minerals website at www.goldenminerals.com.
Golden's Senior Vice President of Exploration and Chief Geologist Warren Rehn has spearheaded Velardena's drilling and restart planning efforts during the last year. Rehn commented, "I am extremely pleased with our team's dedication and successful execution to date. We have employees in Mexico who go well beyond the call of duty in performing their roles, and we are proud to count them as team members. We are delighted to have restarted mining slightly ahead of schedule and we look forward to successfully driving Velardena to profitability."
Review by Qualified Person and Quality Control
The technical contents of this press release have been reviewed by Warren M. Rehn, M.Sc., a Qualified Person for the purposes of Canadian National Instrument 43-101. Mr. Rehn has over 33 years of mineral exploration experience and is a QP member of the Society for Mining Metallurgy and Exploration.
To ensure reliable sample results, Golden Minerals uses a quality assurance/quality control program that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates and reference standards in each batch of samples. Core is photographed and sawn in half with one half retained in a secured facility for verification purposes. Sample preparation (crushing and pulverizing) is performed at an independent ISO 9001:2001 certified laboratory in Chihuahua or Zacatecas, Mexico. Prepared samples are direct-shipped to an ISO 9001:2001 certified laboratory in Canada.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on restarting operations at its Velardena Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico.
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 the expected timing of the planned start of mining in the Terneras vein; the focus on driving access ramps, crosscuts and stoping; the anticipated timing of ramp up; veins planned to be mined; anticipated positive net cash flow at the Velardena Properties and incremental cash for the Company at current silver and gold prices after production is ramped up through the second quarter 2015; and drill results from the Roca Negra Vein and its anticipated positive contribution to the mine plan. These statements are subject to risks and uncertainties, including delays in mining or commencing processing or the ramp-up of same; mining or processing changes or problems; mining or processing costs in excess of those anticipated; unexpected variations in mineral grades, types and metallurgy; fluctuations in silver, gold, zinc and lead prices; technical, permitting, mining, metallurgical, recovery or processing issues; problems that delay or reduce underground mine and stope construction; failure of mined material to meet expectations; failure to meet expectations regarding mining and processing rates, saleable metals, cash costs, cash flow at the Velardena Properties and incremental cash for the Company; failure of veins to be mined to meet expectations, including failure of drill results from the Roca Negra vein to be indicative of its contribution to the mine plan or of the Roca Negra vein to make a positive contribution to the mine plan; higher than anticipated cash outlays to resume operations; fluctuations in costs and general economic conditions; results of additional drilling at Velardena; changes in geological, geostatistical and other interpretations of the information from drill programs; reliability of metallurgical testing results and changes in interpretation; unfavorable interpretations of geologic information; changes in political conditions, tax, environmental and others laws in Mexico; and financial market conditions. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013.
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company
