GOLDEN, Colo., March 2, 2016 /CNW/ -- 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.
Audit Opinion
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.
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 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
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company