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Durango State, Mexico

Land Area
1,866 hectares

Property Description
Gold open pit mine located 80km (115km by road) from Velardeña

Gold and silver

100% owned; 2 claims

Project Stage

Current Activities & Work
Completed drill program aimed at expanding the resource - Oct. 2021

Complete and current


Rodeo is a 1,866-hectare gold project located in Durango State, Mexico approximately 80 kilometers (115 km via road) west of the Company's Velardeña Properties and processing mills. We began gold & silver production at Rodeo in January 2021. We are transporting the material via truck to the oxide mill at Velardeña for processing, where in April 2021 we successfully installed a second regrind mill used in the production process given the harder characteristics of Rodeo's mined material. Processing began at a rate of approximately 200 tonnes per day in January, then reached the 450 tonnes per day production throughput goal in late April 2021 when we successfully commissioned a second ball mill. The company announced a first pour of gold-silver doré bars on schedule at the end of January 2021.

Golden conducted an exploration drilling program aimed at expanding the resource between March and October, 2021. The program encompassed approximately 5680 meters of shallow hole exploration drilling at selected near-surface targets located immediately adjacent to the current pit. We believe the program has the potential to modestly extend the life of the Rodeo mine beyond the currently estimated life of around 2.25 years. Full results will be available in Q4 2021, and any newly added resources will be incorporated into the Company’s production plans.

2021 Key Production Data - YTD through September 30

  Q1 2021 Q2 2021 Q3 2021 YTD
Tonnes per day processed            209            427            532            390
Gold grade processed (g/t)             3.0             3.6             4.0             3.7
Payable gold produced in dore (oz)         1,390         3,452         4,777         9,618
Realized gold price (USD/ounce)*         $1,721         $1,843        $1,783        $1,797


  Q1 2021 Q2 2021 Q3 2021 YTD
Total cash costs, net of by-product credits (000)  $         2,606  $      3,157  $          4,133  $         9,896
Payable gold ounces produced in doré             1,390          3,452              4,777             9,618
Total cash cost per unit        
Total cash operating costs             2,034              980                  905             1,095
Treatment and refining charges                   22                23                    23                   23
Silver by-product credits               (180)              (88)                  (63)                 (89)
Total cash costs, net of by-product credits, per payable Au oz  $      1,876  $      915  $         865  $      1,029

2021 Forecast 

On November 4, 2021, management provided the following Rodeo forecast for full year 2021. The company anticipates total tonnes processed for the full year 2021 will be approximately 145,000 to 150,000, which is higher than the previously forecasted range of 135,000 to 140,000. Due primarily to lower projected full year 2021 mill recoveries for gold of approximately 80%, as compared to our previous projections based on PEA results of approximately 85%, payable production for the full year 2021 is expected to be at the higher end of our prior guidance of 12,000 to 14,000 ounces of gold and above our prior guidance of 25,000 to 30,000 ounces of silver.   Gold recoveries have been slightly lower year to date as we continue to balance the operating performance of the plant between higher throughput and recovery.  We continue to optimize the mill circuit for increased recovery with a focus on a finer grind and additional aeration in the leach tank train.

Using an assumed gold price of $1,800/oz and an assumed silver price of $25.00/oz (our realized prices for the nine months ended September 30, 2021, as shown above, were $1,797 and $25.64 for gold and silver, respectively), estimated operating margin for the full year 2021 from the Rodeo Property (defined as revenue from the sale of metals less the cost of metals sold) is estimated at approximately $10.0 million to $11.5 million with after-tax net cash flow from Rodeo for the full year, net of capital expenditures and working capital, estimated at approximately $8.0 million to $9.0 million, consistent with prior guidance provided in our Form 10-Q for the quarter ended June 30, 2021.See the Third Quarter 2021 Form 10-Q for additional risk disclosures related to 2021 financial estimates.


Tonnes Processed 145,000 - 150,000
Payable Production 12,000 -14,000 oz Au and 25,000 - 30,000 Ag
Net Operating Margin $10.0 - $11.5 million
Rodeo after-tax cash flow $8.0 - $9.0 million

Preliminary Economic Assessment (2020)

Independent engineering firm Mineral Resources Engineering has prepared the PEA for Golden Minerals in accordance with Canadian National Instrument 43-101 “Standards of Disclosure of Mineral Projects” (“NI 43-101”). The resource used for the PEA was developed in accordance with Canadian NI 43-101 by the independent engineering firm Tetra Tech (report dated January 26, 2017:  NI 43-101 Technical Report; Mineral Resource Estimate; Rodeo Project; Rodeo, Durango, Mexico). The PEA assumes prices of $1,622/oz gold and $14.38/oz silver.

Preliminary results of the economic analysis are shown below in after-tax U.S. Dollars.

  • After-tax net present value (“NPV”): (US)$22.5 million at an 8% discount rate
  • Life of Mine (“LOM”) after-tax free cash flow:  $24.9 million
  • Pre-production development time:  1 quarter (3 months)
  • LOM:  9 quarters
  • Total pre-production costs, including capital and contingency:  $1.5 million
  • After-tax payback period:  during the first production quarter
  • LOM contained production:  41 Koz Au; 118 Koz Ag
  • LOM payable production :  34 Koz Au ; 89 Koz Ag
  • LOM average gold grade:  3.31 grams per tonne (“g/t”); average silver grade:  9.65 g/t
  • Cash cost per Au oz, net of by-product credits:  $798
  • All-in sustaining cash cost per Au oz, net of by-product credits:  $843

After-Tax Economic Results of the Project:

Item Total LOM ($millions) Total LOM (per tonne)
Gross Payable $55.67 $146.03
TCs, Freight, Ins, Etc. ($1.05) ($2.75)
NSR $54.63 $143.28
Royalties ($1.37) ($3.58)
Operating Costs    
Mining ($9.12) ($23.91)
Processing Costs ($12.92) ($33.90)
G&A and Head Office ($0.43) ($1.14)
Contingency ($2.25) ($5.89)
Operating Margin $28.54 $74.86
Capital Cost    
Mine Capital ($0.54) ($1.41)
Pre-Production Costs ($0.81) ($2.14)
Contingency ($0.16) ($0.42)
Pre-Tax Cash Flow $27.03 $70.89
Pre-Tax NPV8% $24.36  
Income Tax Provision ($2.14)  
After Tax Cash Flow $24.89  
After-Tax NPV8% $22.46  

PEA Sensitivity Analysis

Rodeo Sensitivity

2016-2017 Exploration Activity

Golden conducted a 2,080-meter core drilling program at Rodeo in 2016. Partial results from the first round of drilling, released in September 2016, showed a gold and silver bearing epithermal vein and breccia system with encouraging gold and silver values over an approximate 50 to 70-meter true width. The system is exposed at the top of a northwesterly striking ridge and dips steeply to the northeast. The drill holes reported previously are spaced about 25 meters apart along 100 meters of the crest of the mineralized ridge. The drill holes are angle holes oriented at 55° to the southwest and cut the vein and breccia system at an angle of approximately 50°. Previous work has shown the mineralized system to be exposed at surface over about one kilometer of strike length.

We completed the drill program in Q4 2016 and released a NI 43-101 compliant Technical Report in January 2017. The Technical Report included two resource estimates based on two processing scenarios and their respective cutoff grades and open-pit optimization models. The first operating scenario reflects a smaller amount of higher-grade material and estimated mineralized material of 0.4 million tonnes containing 3.3 g/t gold and 11 g/t silver for a total of 46,000 ounces of gold and 0.2 million ounces of silver. This scenario provides a potentially shorter time to processing with lower capital costs since we already own the mill, located within trucking distance of the Rodeo property.  The second operating scenario reflects a larger amount of lower grade material and estimated mineralized material of 3.6 million tonnes containing 0.8 g/t gold and 12 g/t silver. The second mineralized material estimate envisions a standalone heap leach operation, depending on leachability of the material and development and operating costs. We believe this material, as currently identified, could provide additional mined material for our Velardeña oxide mill following the completion of the Hecla lease, currently set to expire December 31, 2020.

In initial test work conducted in 2017, we received confirmation of good gold and silver metallurgical recoveries for milled material in initial test work. Bottle roll cyanide leach testing of the high-grade samples resulted in gold extractions of 80 to 86 percent. Silver extractions ranged from 72 to 76 percent for all tests. Test work also indicates that the material is not suitable for gold and silver recovery by heap leaching.

See the Resources and Geology and Technical Reports pages for additional information about the Technical Report and its estimates.

Location, Access and Facilities

Rodeo is located two kilometers east of the town of Rodeo in Durango State, Mexico and is accessed by a short stretch of unpaved road from the Nazas-Rodeo highway. Basic amenities are available in the town of Rodeo. The property is located approximately 80 kilometers west of our Velardeña Properties -- within trucking distance of the oxide mill at Velardeña.

Title and Ownership

We own the Rodeo and Rodeo 2 claims covering 1,866 hectares of land located 80 kilometers west of our Velardeña Properties in Durango State, Mexico. Golden acquired the Rodeo property subject to a royalty interest (due to La Cuesta International) in 2015.

NI 43-101 Compliant Mineral Resource Estimate

Rodeo Tonnes
(M oz)
('000 oz)
Gold Eq.
('000 oz)
Indicated 0.4 0.2 46.0 47.8 11 3.3
  • Source:  Tetra Tech NI 43-101 Technical Report, January 26, 2017
  • Gold equivalents calculated at 72:1
  • For additional details see the Technical Reports page

Geology & Mineralization

Gold and silver mineralization at Rodeo is hosted by Tertiary felsic volcanic rocks in fault contact with Cretaceous Mescalera group calcareous sedimentary rocks.  Precious metal mineralization is low sulfidation epithermal in character and associated with chalcedonic quartz veins and breccias.  Strongest gold mineralization outcrops near the top of a north-south trending ridge covering a strike distance of about 300 meters and a width of around 200 meters.  The near-surface and outcropping setting presents an opportunity to exploit the deposit by low strip ratio open pit methods.  The only sulfide observed at Rodeo is fine-grained pyrite which is disseminated in quartz.

Rodeo 2021 Expansion Drill Program

Final Drill Results, reported November 10, 2021


Earlier Drill Programs

Rodeo 2020 Drill Program: Final Drill Results

Rodeo 2016 Drilling Results