SOURCE: Golden Minerals Company

Golden Minerals Company

May 06, 2010 07:00 ET

Golden Minerals Announces High Grade Drill Results and Establishes District Potential of El Quevar Project

GOLDEN, CO--(Marketwire - May 6, 2010) - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce significant drill intercepts outside the Yaxtché deposit at the El Quevar project in northwestern Argentina.

A first stage drilling program has been completed on three of the Quevar Norte area targets, located approximately three kilometers north of the Yaxtché deposit. Three of the six holes drilled intersected silver mineralization of greater than 100 grams per tonne, with one of the holes intersecting significant mineralization. Hole QND-002 averaged 1,289 grams per tonne of silver over an intercept of 28 meters, including 5,765 grams per tonne over a 3 meter intercept, and an additional 2,990 grams per tonne of silver over a 4 meter intercept. Four of the holes were drilled on the Sharon target and one hole was drilled on the Claudia target at Quevar Norte. A sixth hole tested the periphery of the Tetera breccia and intercepted 2 meters averaging 62 grams per tonne of silver. Trench samples on the Sharon target returned up to 27,000 grams per tonne of silver over one meter. 

The mineralization and alteration of the structures at the Quevar Norte area are similar to the Yaxtché deposit. The Quevar Norte drilling program was designed to test mapped structures and areas of anomalous silver and trace elements in outcrops. The drill holes at the Sharon target were spaced approximately 100 meters apart.

Most of the exploration activities to date have been concentrated at the Yaxtché deposit, where a feasibility study is currently underway. The Quevar Norte targets and Yaxtché deposit are four of the 13 targets currently identified at the El Quevar project, which consists of approximately 66,000 hectares, 100% controlled by Golden Minerals.

"We are extremely pleased that the recent drilling at Quevar Norte demonstrates the district potential of El Quevar," commented Jeffrey Clevenger, Chairman, President and CEO of Golden Minerals. "We plan to test other targets, along with ongoing in-fill drilling at the Yaxtché deposit, as we continue to grow the El Quevar project resource."

All drill assays and intercepts for the holes at the Quevar Norte target for which the Company has received and verified results will be available at http://www.goldenminerals.com/.

Review by Qualified Person, Quality Control and Reports

Results of the Company's drilling program 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 NI 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.

Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging from 50% to 95% of the reported down-hole lengths.

To ensure reliable sample results, Golden Minerals uses a quality assurance/quality control program 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. Sample preparation (crushing and pulverizing) is performed at an independent ISO 9001:2001 certified laboratory. Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories. Pulp splits of mineralized intervals are re-assayed at certified independent referee laboratories.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its pipeline of exploration projects in Latin America and in managing the San Cristobal mine in Bolivia. The Company has a portfolio of 30 exploration projects, including the feasibility stage El Quevar project in the Salta Province of northwestern Argentina, and advanced stage drilling projects in Mexico and Peru. The Company's experienced management team has proven in-house ability to explore, develop and operate mining projects.

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 significance of drill intercepts, the district potential of the El Quevar project, the Yaxtché deposit feasibility study and planned additional drilling. These statements are subject to risks and uncertainties, including results of future exploration; whether continued exploration results will support engineering and other feasibility work on El Quevar; changes in geological interpretations, including changes resulting from further exploration work; whether exploration results will be indicative of future exploration results and support a determination that the El Quevar project comprises a district; uncertainties regarding whether the results of additional exploration at the Company's projects or feasibility work at El Quevar will be positive; fluctuations in silver and other metal prices; technical and permitting issues; title problems; and the ability and success of the Company to continue raising adequate capital and implementing its plans. 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 for the year ended December 31, 2009.

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