GOLDEN, Colo., April 20, 2015 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announces the results of Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimates for deposits at the Santa Maria Mine and the Los Azules Mine properties. Both properties are located in southern Chihuahua State, Mexico within 30 kilometers of the town of Hidalgo del Parral near the Parral mining district.
The Santa Maria vein system is on average a two-meter wide epithermal silver (Ag) – gold (Au) deposit hosted in Parral Formation calcareous sedimentary rocks. Mineral resources were estimated based on 125 composited channel samples and 2,900 meters of drilling in 13 holes over a strike length of 355 meters and down dip depth of 155 meters. Previous mining activities on the Santa Maria property included completion of a decline to the 75 meter level which is accessible by motorized equipment.
Indicated and inferred mineral resource estimates as at April 20, 2015 for Santa Maria are shown in the following table:
|Cut-off||Mineral||Tonnes||Silver Oz||Gold Oz||Silver||Gold||SilverEq||GoldEq|
|(1)||Mineral resources are reported as diluted tonnes and grade to a minimum 0.8meter (m) width with 0.2m dilution added|
|(2)||Cut-off grade has been estimated using 90% recovery and 90% payable Ag and Au with three year trailing average metal prices as of February 2015: US$24 per troy ounce Ag, US$1,420 per troy ounce Au|
|(3)||Equivalents calculated at 60:1 silver to gold|
|(4)||Silver and gold equivalent ounces are not additive|
The US Securities and Exchange Commission (SEC) Industry Guide 7 mineralized material estimate for Santa Maria totals 86,000 tonnes at silver and gold grades of 280 grams per tonne (gpt) and 1.1 gpt, respectively, using the cut-off grade and metals prices provided in the table above.
The Los Azules vein system is on average a one-meter wide epithermal Au-Ag quartz vein system hosted in Tertiary volcanic rocks. Resources were estimated based on 206 composited channel samples and 30 drill holes totaling 7,479 meters over a strike length of 2,100 meters and a down dip extent of 350 meters. Previous mining on the Los Azules property established underground access drifts that Golden Minerals rehabilitated for access to the vein system.
Indicated and inferred mineral resource estimates as at April 20, 2015 for Los Azules are shown in the following table:
|(1)||Mineral resources are reported as diluted tonnes and grade to a minimum 0.8m width with 0.2m dilution added|
|(2)||Cut-off grade has been estimated using 90% recovery and 90% payable Au and Ag with three year trailing average metal prices as of February 2015: US$1,420 per troy ounce Au, US$24 per troy ounce Ag|
|(3)||Gold and silver equivalents calculated at 1:60 gold to silver|
|(4)||Gold and silver equivalent ounces are not additive|
The SEC Industry Guide 7 mineralized material estimate for Los Azules totals 78,000 tonnes at silver and gold grades of 155 gpt and 3.0 gpt, respectively, using the cut-off grade and metals prices provided in the table above.
Golden Minerals has the right to acquire the Santa Maria and Los Azules properties under separate purchase option agreements.
Jeffrey G. Clevenger, Chairman, President and Chief Executive Officer of Golden Minerals, said, "One of Golden Minerals' top priorities is to establish a second set of mines in Mexico, which could include Santa Maria, Los Azules or other properties currently under evaluation. Our first priority is to accomplish a smooth and profitable restart of the Velardena Properties, which I am pleased to say is going well."
Tetra Tech is an independent engineering firm that served as principal author of the mineral resource estimate prepared on behalf of the Company. Geoff Elson is the independent Qualified Person from Tetra Tech who reviewed and approved this press release.
An NI 43-101-compliant technical report will be filed on SEDAR (www.sedar.com) and made available on the Golden Minerals website within 45 days.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on mining its Velardena Properties and the exploration of properties in Mexicoand Argentina.
Cautionary Note to U.S. Investors concerning Estimates of Measured, Indicated and Inferred Resources
This press release uses the terms "indicated resources" and "inferred 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 United States Securities and Exchange Commission (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 measured mineral resources or indicated 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 United States Securities and Exchange Commission's Industry Guide 7, does not indicate "reserves" by SEC standards. We cannot be certain that any deposits at the Santa Maria or Los Azules projects 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.
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 estimates of measured, indicated and inferred resources, estimates of mineralized material, and the Company's priorities to establish a second set of mining assets. These statements are subject to risks and uncertainties, including: changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future exploration, analysis or mining and processing experience; new information from drilling programs or other exploration or analysis; reliability of metallurgical testing results and changes in interpretation based on processing results;; unexpected variations in mineral grades, types and metallurgy; fluctuations and continuing declines 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 Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2014.