GOLDEN, Colo., Nov. 16, 2015 /CNW/ -- Golden Minerals
Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the
Company") announced today that it has acquired the mining rights
for the Santa Rosa vein in the
San Luis del Cordero Project in
Durango State, Mexico, pursuant to
an exploration and exploitation agreement signed with the
wholly-owned Mexican subsidiary of Prospero Silver Corp.
(TSXV: PSL) ("Prospero").
The Santa Rosa vein is
approximately two meters wide and as currently defined extends for
about 400 meters on strike. In its October 1, 2014 NI 43-101 Report on the Initial
Resource Estimate for the San Luis
del Cordero Project, Prospero reported Santa Rosa vein indicated and inferred
resources as at October 1, 2014
totaling approximately 31,000 tonnes and 218,000 tonnes,
respectively, with grades of approximately 825 and 715 grams per
tonne silver, and stated that the vein remains open along strike to
the west. Records show that the Santa Rosa vein has been mined previously to a
depth of about 100 meters and can be partially accessed from the
historic underground workings.
Golden Minerals plans to commence drilling in early 2016, once
permits are received, to test extensions of the Santa Rosa vein on strike and to complete
infill drilling. The Company's objectives are to increase the
size of the resource and to upgrade inferred resources to measured
and indicated resource categories. The Company expects to
issue an NI 43-101 resource estimate and a preliminary economic
analysis in 2016. The preliminary results from the Company's
initial metallurgical testing of material from the Santa Rosa vein indicate that the material is
suitable for concentration by flotation.
If the results of its exploration and metallurgical work are
successful, the Company could mine the vein from the existing
underground mine following completion of certain rehabilitation and
access projects. The Company would use primarily mining
equipment from its shut down Velardena operation and truck mined material
less than 100 kilometers on paved roads to its recently idled
Velardena sulfide mill for
processing. The Company may require external funding to fund
capital and working capital costs associated with mining the
Santa Rosa vein, preliminarily
estimated at approximately $6.0
million.
Under its agreement with Prospero, Golden Minerals paid Prospero
$140,000 on signing and is required
to pay $100,000 annually until
production begins. The Company must complete a minimum of
2,000 meters of drilling within the next 18 months and commence
mining and processing activities within three years. Once
mining and processing begin, the Company is required to pay
Prospero 15% of net proceeds from the sale of concentrates from the
property as defined in the agreement and an underlying 2% net
smelter return royalty to a third party. The Company is
responsible for all of the costs of exploration, preparation for
mining, mining, processing and sales, for which it receives credit
in the net proceeds calculation.
Warren Rehn, President and Chief
Executive Officer of Golden Minerals, commented, "We are excited at
the potential of the high-grade Santa
Rosa vein to provide near-term feed for our sulfide mill at
Velardena and look forward to
getting underway with drilling in early 2016 as soon as we receive
the necessary permits."
Review by Qualified Person
The October 1, 2014 NI 43-101
Report on the Initial Resource Estimate for the San Luis del Cordero Project was prepared by
Terence Wesley Hodson, P.Geo., of
Hodson Geological Ltd., the Qualified Person for this report
pursuant to Canadian National Instrument 43-101.
The technical information in this press release has been
reviewed by Warren M. Rehn, M.Sc., a
Qualified Person pursuant to Canadian National Instrument
43-101. Mr. Rehn is President and Chief Executive Officer of
Golden Minerals.
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 "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.
Forward-Looking Statements
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 the terms of the exploration and
exploitation agreement including required future payments,
Prospero's estimates indicated and inferred resources, the
Company's planned exploration of 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 2016, 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 and estimates of capital and working capital costs
thereof. 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; reliability of metallurgical testing results and changes
in interpretation based on processing results; 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 further tests demonstrate that the Santa Rosa vein is suitable for concentration
by flotation; whether capital and working capital costs associated
with mining the Santa Rosa vein
are higher than currently anticipated; 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, 2014.
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