Golden Minerals Company is a Colorado-based precious metals producer with a pipeline of exploration projects in Mexico, Argentina and Nevada. With the commencement of gold and silver production at our Rodeo project (Durango State, Mexico) in January 2021, the company has successfully transitioned from exploration firm to gold-silver producer. Additionally, we intend to restart production at our silver-gold Velardeña Properties, potentially in 2021-2022, where the use of bio-oxidation processing of sulfide concentrates is expected to result in a dramatic increase in overall gold recovery that will give rise to longer term profitable operations.
Golden Minerals Company offers investors leverage to gold and silver prices. We hold independently-prepared Preliminary Economic Assessments (NI 43-101-compliant) on four of our precious metals projects that total $164M in net present value – with all PEA’s prepared based upon gold and silver prices well below current levels. Our Rodeo gold project presents a low capital cost/high profit margin opportunity to realize significant cashflow that can be used to self-fund production start-up at the larger silver/gold Velardeña Properties. We started production at Rodeo in January 2021 and are currently conducting a drill program aimed at expanding that resource.
Meanwhile, repeated testing of sulfide concentrates using bio-oxidation processing technology demonstrates improved gold recovery from pyrite concentrates and potential for Velardeña to become a highly profitable operation over at least a 10-year mine life. Both Velardeña and our district-scale El Quevar silver project in Salta, Argentina present additional upside in the form of significant resource expansion and thus value appreciation.