GOLDEN, Colo., Jan. 26, 2017 /PRNewswire/ -- Golden
Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals",
"Golden" or "the Company") is
pleased to announce the results of a Canadian National Instrument
43-101 ("NI 43-101") compliant mineral resource estimate for the
gold deposit at its Rodeo property.
Rodeo is a 1,900-hectare gold project located in Durango State,
Mexico approximately 80 kilometers
west of the Company's Velardena
properties and processing mills. Golden acquired the Rodeo property subject to
a royalty interest due to La Cuesta International in the second
quarter 2015, prior to which exploration by other companies
identified a gold-bearing system exposed at surface. Golden conducted a 2,080-meter core drilling
program in 2016.
Shown below are two resource estimates based on two processing
scenarios and their respective cutoff grades and open-pit
optimization models. Table 1 presents a mill grade resource that
may be processed in the Company's existing oxide mill at
Velardena. This case provides a
potentially shorter time to production and lower capital costs,
since the Company owns the production mill located within trucking
distance of the Rodeo property. Table 2 presents a heap leach case
that could be a standalone operation, depending on leachability and
costs of the standalone heap leach operation.
Indicated and inferred mineral resource estimates as of
January 25, 2017 for Rodeo are shown
in the following tables:
Table 1:
Mineral Resource Estimate Base Case (Mill Processing Pit
Constrained)
|
Classification
|
Cutoff
|
Tonnes
|
Au
g/t
|
Ag
g/t
|
Au
toz
|
Ag
toz
|
Waste:
|
|
AuEq
g/t
|
(M)
|
|
|
('000)
|
(M)
|
Resource
|
Indicated
|
0.83
|
0.4
|
3.3
|
11
|
46
|
0.2
|
0.91
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Notes:
|
|
(1) Cutoff grade and
Au equivalent calculated using metal prices of $1,220 and $17 per
troy ounce of Au and Ag, recoveries of 77% and 90% Au and
Ag;
|
|
(2) Mineral resources
have been pit shell constrained using the Lerch Grossman algorithm
with cost inputs per tonne of $7.50 mining, $10 trucking, and $20
processing. A breakeven cutoff including trucking and processing
costs per block was applied to a block model within the optimized
shell;
|
|
(3) Metal prices do
not exceed three-year trailing average as of the end of December
2016, per SEC guidance;
|
|
(4) Reported
indicated mineral resources are equivalent to mineralized material
under SEC Industry Guide 7, and
|
|
(5) Au equivalent
calculated at the ratio 72 Ag : 1 Au.
|
Table 2: Mineral Resource Estimate
Alternative Case (Heap Leach Processing Pit
Constrained)
|
Classification
|
Cutoff
|
Tonnes
|
Au
g/t
|
Ag
g/t
|
Au
toz
|
Ag
toz
|
Waste:
|
|
AuEq
g/t
|
(M)
|
|
|
('000)
|
(M)
|
Resource
|
Indicated
|
0.17
|
3.6
|
0.8
|
12
|
94
|
1.4
|
0.53
|
Inferred
|
0.17
|
3.6
|
0.4
|
11
|
47
|
1.3
|
Notes:
|
|
(1) Cutoff grade and
Au equivalent calculated using metal prices of $1,220 and $17 per
troy ounce of Au and Ag, recoveries of 60% and 70% Au and
Ag;
|
|
(2) Mineral resources
have been pit shell constrained using the Lerch Grossman algorithm
with input costs per tonne of $3.40 mining and $3.10 processing. A
cutoff including mining and processing costs per block was applied
to a block model within the optimized shell;
|
|
(3) Metal prices do
not exceed three-year trailing average as of the end of December
2016, per SEC guidance;
|
|
(4) Reported
indicated mineral resources are equivalent to mineralized material
under SEC Industry Guide 7, and
|
|
(5) Au equivalent
calculated at the ratio 72 Ag : 1 Au.
|
Warren Rehn, President and Chief
Executive Officer of Golden Minerals, commented, "The mill grade
resource of about 50,000 gold equivalent ounces has the potential
to provide us with more than two years of feed for our Velardena oxide plant. This could be an
important replacement to the Company's current cash flow from the
mill starting in 2019 after the Hecla lease expires, assuming
positive economic results from our ongoing studies of the Rodeo
deposit."
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.
Toronto Stock Exchange Ticker Symbol Change
Separately, Golden Minerals announces it intends to change its
Toronto Stock Exchange ("TSX") ticker symbol from AUM to AUMN
within the next five to 15 business days. The TSX has recently
introduced the option of utilizing four-letter ticker symbols, and
the Company has elected to change its TSX symbol to match that of
its NYSE MKT counterpart.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on acquiring and
advancing mining properties in Mexico with emphasis on areas near its
Velardena processing plants.
Cautionary Note to U.S. Investors concerning Estimates of
Mineral Resources
This press release uses the terms "mineral resources",
"indicated mineral resources" and "inferred mineral 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 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 SEC's Industry Guide 7, does not indicate
"reserves" by SEC standards. We cannot be certain that any deposits
at the Rodeo project 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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended, and applicable Canadian securities legislation, including
statements regarding estimates of mineral resources and mineralized
material based on two potential processing scenarios, and the
Company's general expectations regarding the Rodeo deposit. 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 SEC 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
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company