Golden Minerals Announces High Grade Resource Estimate for Velardena Property in Durango, Mexico
Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce the results of a Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Velardeña Operations in Mexico which was received yesterday, May 17th. The resource estimate has been prepared under the direct supervision of Robert Sanderfur, PE, of the firm of Chlumsky, Armbrust and Meyer (CAM).
The new resource estimate demonstrates significantly higher grades (approximately 50% on a gold/silver equivalent basis) than previous estimates.
The CAM measured, indicated and inferred resource estimate, which does not include the San Diego property, is shown in the following table:
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Classification Tonnes Gold Silver Gold Silver Silver
(M) (g/t) (g/t) Ounces Ounces Equivalent
(M) (M) Ounces (M)
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Measured & 2.3 3.46 195 0.3 14.6 27.6
Indicated
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Inferred 3.1 3.33 159 0.3 15.8 32.3
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The CAM resource used a gold price of $1255.12 per troy ounce and a silver price of $23.28 per troy ounce, and a cutoff grade of a net smelter return (NSR) of $120.00 per troy ounce.
The measured and indicated resource at Velardeña is 2.3 million tonnes at grades of 3.46 grams per tonne of gold and 195 grams per tonne of silver which at a 50:1 gold to silver equivalent ratio totals 27.6 million ounces. Previous estimates had greater tonnes at significantly lower grades and slightly higher total ounces.
The measured and indicated resource remains relatively the same after two years of mining which indicates that the Company has been able to develop new measured and indicated resources to replace those mined. The Company and CAM believe that this rate of replacement is likely to continue in the future, and that this deposit is similar to other epithermal vein systems where it is not cost effective or practical to drill the entire resource base.
Jeffrey G Clevenger, President and CEO, commented, "Golden Minerals is fortunate to have a near term cash generating project in this current down turn for the junior sector. Higher grades identified with our new resource estimate at Velardeña will only facilitate our goals of becoming financially self sufficient."
The new estimate of inferred is reduced from previous estimates as a result of a conservative strict geostatistical approach for classifying the inferred category. The new CAM inferred resource estimate for contained ounces of gold and silver is 0.3 million and 15.8 million ounces respectively, compared to 1.4 million and 63.8 million respectively in the previous estimate.
CAM also provided the following conceptual estimate of the exploration potential of additional mineralized zones, most of which were included in the previous estimate of inferred resources.
The range of potential is as shown below:
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Range Tonnes (M) Gold (g/t) Silver (g/t)
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High 27.9 3.4 210
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Low 10.5 2.3 140
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The exploration potential was calculated on the basis of similar parameters to that of the previous estimate for inferred resources. Potential must be stated as a range and there is much greater uncertainty in tonnage than grade. Uncertainty in grade is in the order of + or - 20%.
The potential quantity and grade shown in the table above is conceptual in nature. Insufficient exploration has been completed at this stage to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Robert Sandefur, PE, the CAM geostatistician responsible for the new resource estimate, and qualified person, commented that "The CAM calculation of the range of potential appears to be similar to previous estimates of inferred resource and there is greater upside potential to the high number than downside potential to the low number."
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 Velardeña Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina. For additional information please visit http://www.goldenminerals.com
Review by Qualified Person, Quality Control and Reports
The mineral resource estimate was prepared by the consulting firm of Chlumsky, Armbrust & Meyer, under the supervision of Robert Sandefur, Professional Engineer, and a Qualified Person as defined by NI 43-101, who is independent of Golden Minerals. The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, Definitions and Guidelines, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on December 11, 2005.
A NI 43-101 Technical Report supporting disclosure of this mineral resource will be filed by Golden Minerals on SEDAR within 45 days of this press release.
Contact:
Golden Minerals Company
Jerry W. Danni
Executive Vice President
(303) 839-5060
http://finance.yahoo.com/news/golden-minerals-announces-high-grade-134800000.html
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