From the 8k:
Through June 30, 2011, Golden Mineral has completed more than 820 meters of development drifting in the Yaxtche zone at its El Quevar project. The drifting has encountered a large number of mineralized structures believed to be tension faults that were not anticipated in the current model of the El Quevar deposit, in which mineral concentrations are modeled to follow the alteration envelope. As a result, Golden Minerals has decided to delay completion of a Canadian National Instrument 43-101-Standards of Disclosure for Mineral Projects ("NI 43-101") compliant Preliminary Economic Assessment and a planned mid-year 2011 resource update to allow further work to assess the impact that these newly discovered structures may have on the mining plan and global El Quevar resource.
As part of this effort, Golden Minerals is currently examining the bulk mining potential of the Yaxtche zone at El Quevar. Preliminary engineering indicates that an open pit could be feasible on the eastern end of the Yaxtche zone
and Golden Minerals is performing an optimization analysis of the potential pit. Following completion of these analyses, Golden Minerals plans to examine the potential for bulk underground mining of the higher grade western zone. Golden Minerals may reduce its level of activity in advancing the drift until this work has been completed, as the open pit would encompass the area through which the drift would advance. Golden Minerals has targeted the fourth quarter 2011 for a resource update based on the bulk mining studies. If these efforts are successful, Golden Minerals plans to proceed with a NI 43-101 compliant Preliminary Economic Assessment in the first half of 2012.
