Golden Minerals Company (TSX:AUM)

[basserdan]

Golden Minerals Provides Update of First Quarter Production and Full Year Guidance for Velardena Operations

GOLDEN, CO--(Marketwire - May 04, 2012) - Golden Minerals Company NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today provided an update of first quarter 2012 production at the Velardena Operations along with updated production guidance for full year 2012.

First quarter 2012 production from the Velardena Operations was better than the preliminary results previously reported. Payable production for the quarter totaled approximately 1,700 ounces of gold and 110,000 ounces of silver, exceeding guidance by approximately 30% for gold and 22% for silver. (my bolding for emphasis)

Production guidance for the remaining three quarters of 2012 has been updated, with a slight increase in anticipated gold production and a decrease in anticipated silver production. Payable silver production for 2012 is now expected to be approximately 590,000 ounces, as compared to previous guidance of 740,000 ounces. Payable gold production guidance is now approximately 9,400 ounces, as compared to previous guidance of 9,000 ounces.

The decrease in anticipated silver production during 2012 is primarily the result of a six month delay in the planned arrival of underground mobile mining and ancillary equipment, including loaders, trucks and drills that are no longer required at the El Quevar project. Due to customs delays in Argentina, the equipment which was expected to arrive in January 2012 is now expected to arrive at the mine site in June. This delay has reduced the amount of mine development completed, which has in turn delayed access to stopes with higher grades and delayed further reductions in dilution. Gold production is forecast to remain near previous guidance as the Company expects to be able to use the new bulk flotation process being installed at the oxide plant, planned to come on line in July, to improve gold recoveries more than originally anticipated.

The following table shows updated actual gold and silver production for first quarter 2012 and updated guidance for full year 2012.

---------------------------------------------------------------------------- 
                            Q1 2012                                Full Year 
                            Actual     Q2 2012  Q3 2012  Q4 2012     2012 
 ---------------------------------------------------------------------------- 
 Production (payable metals) 
 ---------------------------------------------------------------------------- 
 Gold (oz)                      1,700    1,700    2,200    3,800        9,400 
 ---------------------------------------------------------------------------- 
 Silver (oz)                  110,000  110,000  160,000  210,000      590,000 
 ---------------------------------------------------------------------------- 
 Silver Equivalent (oz)-      195,000  195,000  270,000  400,000    1,060,000 
 ----------------------------------------------------------------------------

- Calculated using a silver to gold ratio of 50:1; does not include lead or zinc

Assuming metals prices of $30.00 per ounce of silver and $1,500.00 per ounce of gold during the remainder of 2012, the Company expects that revenue from the sale of metals net of cost of metals sold will be positive at the Velardena Operations in the fourth quarter of 2012.

The Company is continuing engineering studies of a number of alternatives for a possible phased expansion of production at the Velardena Operations, in place of the 1,300 tonne per day expansion still under review. The Company currently expects costs in the range of approximately $20 million for the 1,300 tonne per day alternative. The timing of a potential expansion is subject to the availability of funding.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardena Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.

year ended December 31, 2011.

For additional information please visit http://www.goldenminerals.com/

or contact:
Golden Minerals Company
Jerry W. Danni
Executive Vice President
[phone]

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