GOLDEN, Colo., March 2, 2016 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announced today that it has started a 3,000-meter drilling program on the Santa Rosa vein in the San Luis del Cordero Project in Durango State, Mexico, under an exploration and exploitation agreement signed with the wholly-owned Mexican subsidiary of Prospero Silver Corp. (TSXV: PSL) ("Prospero").
Silver grades as reported by Prospero from previous limited drilling averaged between 700 and 800 grams per tonne silver over a two-meter width in the Santa Rosa vein below historic stopes. Golden Minerals' primary objectives for the 2016 drill program are to define a larger and upgraded Santa Rosa vein resource including measured resources as well as indicated and inferred resources.
Drilling will test for vein extensions to the northwest and east of the known resource. Management believes that an area of surface alteration and antimony and arsenic geochemical anomalies with dimensions of 200 by 1,000 meters along strike to the northwest of the known resource is prospective for additional vein extensions. In addition, the vein deposit is open to the east and at depth. The Company plans to drill 11 to 14 holes in this initial drill program with depths between 150 and 300 meters. All drill holes will be angled core holes designed to intercept the vein at depths of 100 to 250 meters below surface. The Company expects to conclude the drill program in April or May of 2016.
The Company expects to issue a NI 43-101 resource estimate and preliminary economic analysis in the third quarter 2016. Assuming the economic analysis is positive, Golden intends to begin a decline ramp from the surface to access the vein for mining when permits are complete, as funding is available. Preliminary results from the Company's initial metallurgical testing of the Santa Rosa vein indicate that the material is suitable for concentration by flotation. The Cordero project is within trucking distance of the Company's idled sulfide mill at the Velardena Properties, to which material could be transported for processing.
The company also today announced that, as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2015 (the "Annual Report"), which was filed on February 25, 2016, the audited financial statements for the year ended December 31, 2015 included in the Form 10-K contained a going concern qualification paragraph in the audit opinion from its independent registered public accounting firm. This announcement is made pursuant to NYSE MKT Company Guide Section 610(b), which requires separate disclosure of receipt of an audit opinion containing a going concern qualification. This announcement does not represent any change or amendment to the Company's consolidated financial statements or to its Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties near its Velardena processing plants and the exploration of properties in Mexico and Argentina.
Cautionary Note to U.S. Investors concerning Estimates of Measured, Indicated and Inferred Resources
This press release uses the terms "measured resources", "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.
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 Prospero's previous exploration activities and results, the Company's planned initial drill program on the Santa Rosa vein and the objectives thereof, the Company's expected issuance of an NI 43-101 resource estimate and preliminary economic analysis in the third quarter 2016 and planned commencement of a decline ramp if results are positive, preliminary indications that material from the Santa Rosa vein is suitable for concentration by flotation, and potential mining and processing plans if exploration and metallurgical work are successful. These statements are subject to risks and uncertainties, including: negative results of exploration and metallurgical testing of the Santa Rosa vein; 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; preliminary results of initial metallurgical testing is reliable and potential changes in interpretation based on further testing or processing results; whether further tests demonstrate that the Santa Rosa vein is suitable for concentration by flotation; unexpected variations in mineral grades, types and metallurgy; potential disputes in business relationships; delays in or inability to obtain permits required for exploration or mining; unsatisfactory results of a 43-101 resource estimate or preliminary economic analysis; whether the Company has been able to raise external funding to proceed with the decline ramp and other activities and costs required to commence mining; whether the Company is able to comply with its obligations under the exploration and exploitation agreement and the consequences of any failure to do so; title problems with the concessions on which the Santa Rosa vein is located; fluctuations and continuing declines in silver and gold metal prices; 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, 2015.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
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SOURCE Golden Minerals Company