SOURCE: Golden Minerals Company

Golden Minerals Company

December 18, 2009 07:00 ET

Golden Minerals Announces Additional El Quevar Drill Results and Initial Drill Results for Panuco Project

GOLDEN, CO--(Marketwire - December 18, 2009) - Golden Minerals Company (TSX: AUM) (PINKSHEETS: GDMN) ("Golden Minerals" or "the Company") is pleased to provide additional drill results from its 2009 drill program at the El Quevar silver project in northwestern Argentina. Results from an initial reconnaissance drill test at the Company's Panuco silver-gold project in the Zacatecas District in Mexico are also being provided.

EL QUEVAR PROJECT

The Company has recently completed a 50 hole diamond core drilling program totaling about 12,200 meters that is an extension of the program previously reported in our news release dated July 29, 2009. Four drills were utilized during the drilling program. The drill program was focused on providing infill drill intercepts in the central area and defining strike extensions of the high-grade Yaxtché mineralized zone to support an updated resource estimation and provide information for preliminary engineering studies. The recent drill program is part of the Company's ongoing exploration program at the El Quevar project. A total of approximately 38,100 meters in 191 holes have been drilled to date. Of the 171 holes for which assays have been received, 121 holes intersected greater than 100 gram per tonne silver mineralization.

Selected drill results not previously reported are shown in the table below.

DRILL HOLE NUMBER           FROM          TO        INTERVAL       Ag
                          (meters)     (meters)     (meters)  (grams/tonne)
                        ------------ ------------ ------------ ------------
Central Yaxtché Zone (infill drilling)
                        ------------ ------------ ------------ ------------
QVD-117*                          67           78         11.0          470
                        ------------ ------------ ------------ ------------
including                         72           75          3.0          890
                        ------------ ------------ ------------ ------------
QVD-125*                          65           68          3.0          428
                        ------------ ------------ ------------ ------------
QVD-130*                          34           37          3.0         1152
                        ------------ ------------ ------------ ------------
QVD-132*                          16           19          3.0          407
                        ------------ ------------ ------------ ------------
QVD-133*                         6.3         10.3          4.0          474
                        ------------ ------------ ------------ ------------
QVD-134*                          38           40          2.0          705
                        ------------ ------------ ------------ ------------
and                               89           93          4.0          913
                        ------------ ------------ ------------ ------------
including                         92           93          1.0         2375
                        ------------ ------------ ------------ ------------
QVD-136*                          18           27          9.0          595
                        ------------ ------------ ------------ ------------
including                         25           26          1.0         2553
                        ------------ ------------ ------------ ------------
QVD-144                           47           58         11.0          446
                        ------------ ------------ ------------ ------------
including                         51           53          2.0         2063
                        ------------ ------------ ------------ ------------
QVD-145                           62           68          6.0          820
                        ------------ ------------ ------------ ------------
including                         63           64          1.0         3598
                        ------------ ------------ ------------ ------------
QVD-147                           84           87          3.0          433
                        ------------ ------------ ------------ ------------
QVD-150                           18           22          4.0          446
                        ------------ ------------ ------------ ------------
including                         18           19          1.0         1365
                        ------------ ------------ ------------ ------------
QVD-151                           49           51          2.0          716
                        ------------ ------------ ------------ ------------
Western Extension
                        ------------ ------------ ------------ ------------
QVD-141*                         254          263          9.0          610
                        ------------ ------------ ------------ ------------
including                        255          256          1.0         1847
                        ------------ ------------ ------------ ------------
and                              268          276          7.0          430
                        ------------ ------------ ------------ ------------
QVD-158                          227        231.2          4.2         1032
                        ------------ ------------ ------------ ------------
including                        227          230          3.0         1317
                        ------------ ------------ ------------ ------------
QVD-163                          243          246          3.0         2571
                        ------------ ------------ ------------ ------------
including                        243          245          2.0         3696
                        ------------ ------------ ------------ ------------
QVD-167                          230          242         12.0         2916
                        ------------ ------------ ------------ ------------
including                        231          235          4.0         5604
                        ------------ ------------ ------------ ------------
including                        231          232          1.0         9659
                        ------------ ------------ ------------ ------------
including                        234          235          1.0         9649
                        ------------ ------------ ------------ ------------
including                        237          239          2.0         4504
                        ------------ ------------ ------------ ------------
and                              247          251          4.0          451
                        ------------ ------------ ------------ ------------
QVD-171                          178          195         17.0          508
                        ------------ ------------ ------------ ------------
including                        178          181          3.0         1246
                        ------------ ------------ ------------ ------------
including                        193          195          2.0         1012
                        ------------ ------------ ------------ ------------

(*) - Drill holes from previous program; results not previously reported

Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging from 75% to 90% of the reported down-hole lengths.

A drill hole location map and listing of all drill intercepts for the holes at El Quevar for which we have received and verified results are available at http://www.goldenminerals.com/.

The El Quevar project is located in Salta Province in northwestern Argentina, where the Company controls mineral and surface rights to approximately 64,200 hectares. Golden Minerals' exploration activities and the majority of drilling to date have been concentrated on the Yaxtché structure, an east-west trending, northerly dipping zone of mineralization hosted in volcanic and intrusive rocks of Tertiary age. The Yaxtché zone is located on mining claims that are part of a joint venture with Hochschild Mining. Golden Minerals has earned a 65% interest in the joint venture and can increase this interest to 80% by completing a feasibility study by year-end 2010 and commencing production by year-end 2012.

The current infill program achieved nominal spacing of approximately 25 to 30 meters for intercepts in the main zone and 50 to 100 meters on the east and west extensions. The drill holes are generally angle holes oriented perpendicular to the interpreted trend of the mineralized zone. Prior to the current drilling program, the Yaxtché mineralized zone had been defined along about 725 meters of strike length, and to a depth of 150 to 250 meters down-dip. The current drilling has confirmed that the Yaxtché mineralization continues at least 950 meters west of the previously defined central zone. Drill holes QVD-079 and -080, reported previously, have confirmed that the Yaxtché zone also extends at least 600 meters east of the central zone. The total strike length of the Yaxtché zone is now more than 2.2 kilometers, remaining open laterally and at depth.

The Company has also identified, but not yet tested, additional target areas on the El Quevar project area. An initial nine hole drilling program totaling approximately 630 meters was conducted on the Viejo Campo target, located about six kilometers to the north of the Yaxtché zone. Silver intersections from the drilling program included 7.8 meters with 200 grams per tonne and 1.9 meters with 395 grams per tonne. An additional program of drilling designed to test the structures at greater depth is planned for early 2010.

PANUCO PROJECT, ZACATECAS, MEXICO

In addition to work at the El Quevar project, the Company continues to advance several other projects located in Mexico, Peru and Chile. We have completed a 10 hole drill test of our Panuco silver-gold target, located north of the city of Zacatecas, Mexico, with encouraging initial results. The Panuco area is one of several targets identified within our 14,900 hectare property holdings in the area.

The Panuco target area is comprised of two main veins hosted in sedimentary rocks that outcrop for an aggregate of about five kilometers in a northwesterly direction. Vein widths range from one to three meters. Several small pits indicate mining of high-grade silver from oxidized surface rocks during Colonial times. There has been no modern exploration at Panuco. The Company has mapped the area in detail and collected approximately 400 samples from the veins and wall rocks. The sample results indicated silver values in the range of 30 to 500 grams per tonne with gold values in the trace to 2.5 grams per tonne range.

The initial ten holes, totaling about 2,300 meters, were drilled on horizontal spacing of 100 meters or more in order to obtain a generalized test of the veins over a broad area. Four holes have been drilled on the Tres Cruces vein and six on the Panuco vein. Once areas of significant interest are identified, the Company plans to drill more closely spaced holes to better define the mineralization. Six out of the ten holes drilled had silver and gold mineralization, with silver values in the mineralized intercepts ranging from 0.84 meters at 63 grams per tonne to 1.7 meters at 1,588 grams per tonne. Gold values in the mineralized holes ranged from 0.16 to 1.27 grams per tonne. All drill intercepts for the holes at Panuco for which we have verified results will be available at http://www.goldenminerals.com/.

Review by Qualified Person, Quality Control and Reports

Results of the Company's drilling programs reported in this press release have been reviewed, verified, and compiled under the direction of the Company's Senior Vice President of Exploration, Robert Blakestad, M.Sc., P.Geo, L.P.G.; a Qualified Person for the purpose of National Instrument 43-101. Mr. Blakestad has over 35 years of mineral exploration experience, is a Professional Geoscientist registered in Nova Scotia and a Licensed Professional Geologist in the state of Washington.

To ensure reliable sample results, Golden Minerals has a QA/QC program in place that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards in each batch of samples. Core is photographed and sawn in half with one half retained in a secured facility for verification purposes.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its exploration projects and in providing mine management services. The Company has a portfolio of 35 exploration projects, primarily located in Argentina, Peru and Mexico, including the advanced stage El Quevar project in the Salta Province of northwestern Argentina. The Company's experienced management team has proven in house ability to explore, develop and operate mining projects. Golden Minerals operates the San Cristóbal mine in Bolivia for Sumitomo Corporation under a Management Services Agreement.

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, including statements regarding the exploration results and programs at the El Quevar and Panuco projects, results and interpretation of results of exploration activities, planned commencement of a pre-feasibility study at El Quevar, the possibility of earning an additional interest in El Quevar and planned exploration activities. These statements are subject to risks and uncertainties, including financial market conditions, increases in costs of materials and supplies used in mining and exploration activities, future results of exploration at El Quevar and Panuco, variations in ore grade and types, fluctuations in the prices of silver, gold and other metals, technical and permitting issues, and the ability and success of the Company in raising adequate capital. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K of its predecessor for reporting purposes, Apex Silver Mines Limited, for the year ended December 31, 2008.

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

Contact Information

  • Golden Minerals Company
    Jerry W. Danni
    (303) 839-5060
    Sr. Vice President Corporate Affairs