Golden Minerals Company
 
   
 
 
  
PROJECT PIPELINE – Advanced Exploration Stage Project
    

El Quevar

El Quevar Project —
43-101 Compliant Technical Reports

Preliminary Economic Assessment 
Prepared by: Amec Foster Wheeler E&C Services, Inc. September 2018 Mineral Resource Estimate
Prepared by:
Amec Foster Wheeler 
E&C Services, Inc. 
February 2018 Mineral Resource Estimate
Prepared by:
Pincock Allen & Holt
June 2012  
Preliminary Economic Assessment
Prepared by: Amec Foster Wheeler E&C Services, Inc. September 2018
Mineral Resource Estimate
Prepared by:
Amec Foster Wheeler
E&C Services, Inc.
February 2018
Mineral Resource Estimate
Prepared by:
Pincock Allen & Holt
June 2012
 
 

Under standards promulgated by the SEC, a deposit reported as "mineralized material" does not qualify as a reserve until comprehensive evaluation, based upon unit costs, grade, recoveries, and other factors concludes economic and legal feasibility. The Yaxtché deposit may never be classified as reserves under SEC standards and it may not be economically feasible to extract any portion of the deposit.

Cautionary Note regarding Estimates of Measured, Indicated and Inferred Resources: The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “indicated” and “inferred resources” that the SEC guidelines strictly prohibit us from including in our filings with the SEC. US investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. US 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.

Drill Results and 43-101 Resource Estimates

The company controls mineral and surface rights to approximately 57,000 hectares at its 100% controlled El Quevar silver project. The Company has conducted significant drilling at El Quevar, and by 2013 more than 400 drill holes had been completed representing over 100,000 meters.

In June 2012, Pincock Allen & Holt (now RPMGlobal) completed a Canadian National Instrument 43-101 ("NI 43-101") compliant resource estimate for El Quevar that utilized 270 holes comprising just over 69,000 meters of drilling with an average hole depth of 256 meters.

In late 2012, Golden conducted an additional 16-hole, 2,400-meter drilling program. This drilling was conducted in Quevar Sud and Quevar Norte areas that were not included in the Pincock Allen & Holt 2012 resource estimate. Targets were selected based on surface samples and geology in the search for additional silver resources. Results included the following:

  • Drill hole QVD-378 located one kilometer (km) east of the previously defined Yaxtché deposit: intersected eight meters (drill width) with an average grade of 779 grams per tonne silver (25 ounces per ton: 779 parts per million (ppm)) from 25 meters to 33 meters. The intercept is located along the Yaxtché mineralized trend and may represent a significant extension of the deposit.

  • Drill hole QVD-383 is a 475 meter step out along the Quevar North structure that hosts the previously-described Sharon target, located approximately 5 km north of the Yaxtché deposit: cut a three meter interval (drill width) grading 374 grams per tonne silver (12 ounces per ton: 374 ppm) from 27 meters to 30 meters within a broader zone of six meters averaging 229 ppm silver from 24 meters to 30 meters.

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. The estimate is based on the same drilling data as the 2012 technical report prepared by RPMGlobal (formerly Pincock Allen & Holt) 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.

43-101 Resource Estimate, February 2018

  Cut-off Ag (g/t) Tonnes (M) Ag Grade (g/t) Ag (M oz)
Indicated        
Sulfide 250 2.63 487 41.1
Oxide 250 0.30 434 4.2
Inferred        
Sulfide 250 0.31 417 4.1

Notes:

  1. 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.
  2. 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).
  3. 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%.
  4. Reported Mineral Resources contain no allowances for hanging wall or footwall contact boundary loss and dilution. No mining recovery has been applied.
  5. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

 

Assay and Drill Results

   
El Quevar —
Drill Hole Data –
Locations (PDF)
El Quevar —
Highlighted
Drill Results (PDF)
   
El Quevar —
Drill Hole Data –
Holes 1 to 50 (PDF)
El Quevar —
Drill Hole Data –
Holes 51 to 100 (PDF)
El Quevar —
Drill Hole Data –
Hole 101 to 150 (PDF)
El Quevar —
Drill Hole Data –
Hole 151 to 200 (PDF)
Drill Holes 201-250
El Quevar —
Drill Hole Data –
Hole 201 to 250 (PDF)
El Quevar —
Drill Hole Data –
Hole 251 to 286 (PDF)
El Quevar —
Drill Hole Data –
Hole 251 to 300 (PDF)
El Quevar —
Drill Hole Data –
Hole 301 to 350 (PDF)
     
El Quevar —
Drill Hole Data –
Hole 351 to 352 (PDF)
     
     
El Quevar Norte —
Drill Hole Data –
Holes 1 to 6 (PDF)
     

Note: Total number of drill holes does not include 3 holes that were re-drilled.

 

 

    
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