NI 43-101 Compliant Reports
October 2009 (CAM) January 2010 (CAM)
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Ag Ag
Tonnes Grade Ounces Tonnes Grade Ounces
Category (million) (g/t) (million)(million) (g/t) (million)
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Indicated 0.3 430 4.3 0.9 412 11.5
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Inferred 1.6 415 21.9 2.2 447 31.9
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From a 195 diamond drill hole data base totaling approximately 38,500
meters, CAM used data from 156 drill holes from the Yaxtché zone in the new
resource estimate. This includes 40 drill holes that were not included in
the data used in CAM's October 2009 report.
The Company controls mineral and surface rights to approximately 64,000
hectares at the El Quevar project. Drilling has been focused on the Yaxtché
zone, which remains open along strike and at depth. The Company expects to
include in future resource updates 14 Yaxtché central and west zone drill
holes from the current 195 drill hole data base that are not included in
the new CAM resource estimate. The farthest west hole drilled to date on
the Yaxtché zone (QVD-192), which is not included in the new estimate,
abuts a post mineral volcanic to the west and averaged 470 grams silver per
tonne over 23 meters and included six meters averaging 875 grams silver per
tonne.
The Yaxtché zone is one of 13 targets in the El Quevar project area.
Drilling is planned to test additional selected targets in the project area
during 2010, including the Viejo Campo and Quevar Norte target areas. The
Company is proceeding with feasibility work including permitting,
metallurgical work, preliminary mine and plant design and planning for
underground access to the mineralized zone.
Silver mineralization at El Quevar is hosted within a broad, generally
east-west-trending structural zone and occurs as a series of north-dipping
parallel-sheeted vein zones, breccias and mineralized faults situated
within an envelope of pervasively silicified brecciated volcanic rocks and
intrusive breccias. The silver mineralization at the Yaxtché zone is of
epithermal origin. The cross-cutting nature of the mineralization, the
assemblage of sulfide and alteration minerals, and the presence of open
spaces with euhedral minerals, all point to an origin at shallow to
moderate depths (a few hundred meters below surface) from hydrothermal
solutions.
A drill hole location map and listing of all drill intercepts for the holes
at El Quevar for which the Company has received and verified results are
available at http://www.goldenminerals.com/.
Review by Qualified Person, Quality Control and Reports
The resource estimation was performed by Robert Sandefur, P. E. of
Chlumsky, Armbrust and Meyer, LLC, 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.
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.
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 in Mendoza, Argentina.
Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories
in Santiago, Chile or Vancouver, B.C. Pulp splits of mineralized intervals
are re-assayed at certified independent referee laboratories in Chile and
Canada.
The independent NI 43-101 technical reports are available on the Company's
website, http://www.goldenminerals.com/.
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 and the Zacatecas project in Mexico. The Company's
experienced management team has proven in house ability to explore, develop
and operate mining projects. Golden Minerals operates the San Cristobal
mine in Bolivia for Sumitomo Corporation under a Management Services
Agreement.
Cautionary Note to U.S. Investors concerning Estimates of Indicated and
Inferred Resources: This press release uses the terms "indicated
resources" and "inferred resources" which are defined in, and required to
be disclosed by, NI 43-101. We advise U.S. investors that these terms are
not recognized by the United States Securities and Exchange Commission (the
"SEC"). The estimation of indicated resources involves greater uncertainty
as to their existence and economic feasibility than the estimation of
proven and probable reserves. U.S. investors are cautioned not to assume
that indicated mineral resources will be converted into reserves. The
estimation of inferred resources involves far greater uncertainty as to
their existence and economic viability than the estimation of other
categories of resources. U.S. investors are cautioned not to assume that
estimates of inferred mineral resources exist, are economically minable, or
will be upgraded into measured or indicated mineral resources. Disclosure
of "contained ounces" in a resource is permitted disclosure under Canadian
regulations, however the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards as in
place tonnage and grade without reference to unit measures. Accordingly,
the information contained in this press release may not be comparable to
similar information made public by U.S. companies that are not subject NI
43-101.
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 Project, results of exploration activities, anticipated further
updates of the El Quevar resource estimate, planned exploration activities,
and planned feasibility work. These statements are subject to risks and
uncertainties, including results of exploration and whether the results
support engineering and other feasibility work on El Quevar, changes in
geological interpretations, whether surface sampling results are indicative
of further exploration results, availability of drills, unexpected
variations in ore grade, types and metallurgy, whether the resources
reported will be converted to reserves and whether the resources reported,
including information regarding contained ounces, will be reduced as
additional exploration and feasibility work is completed, including
feasibility work on processing alternatives and projected recovery rates,
results of feasibility work and uncertainties regarding whether project
feasibility will be supported, financial market conditions, unexpected
increases in costs of materials and supplies used in exploration
activities, fluctuations in silver and other metal prices, technical and
permitting issues, and the ability and success of the Company in 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 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