SOURCE: Golden Minerals Company

Golden Minerals Company

January 19, 2010 07:00 ET

Golden Minerals Announces an Increase in the El Quevar Resource

GOLDEN, CO--(Marketwire - January 19, 2010) - Golden Minerals Company (TSX: AUM) (PINKSHEETS: GDMN) ("Golden Minerals" or "the Company") is pleased to provide a new resource estimate for the Yaxtché zone of its 100% controlled El Quevar project located in the Salta Province of northwestern Argentina. The new resource estimate is based on a Canadian National Instrument 43-101 ("NI 43-101") compliant technical report prepared by Chlumsky, Armbrust and Meyer, LLC ("CAM") dated January 14, 2010. The new CAM NI 43-101 compliant report demonstrates a resource estimate of approximately 0.9 million tonnes of indicated resource at an average grade of 412 grams of silver per tonne and 2.2 million tonnes of inferred resource at an average grade of 447 grams of silver per tonne, resulting in approximately 11.5 million total contained ounces of silver in the indicated resource category and 31.9 million total contained ounces of silver in the inferred resource category, at a cutoff of 100 grams silver per tonne. This represents a 66% increase in contained ounces and a 63% increase in resource tonnage from CAM's October 2009 estimate.

Presented in the table below is a comparison of the current resource estimate with the previous resource estimate provided in October 2009:

                               NI 43-101 Compliant Reports

                    October 2009 (CAM)         January 2010 (CAM)
                =========================  =========================
                                       Ag                         Ag
                 Tonnes    Grade   Ounces   Tonnes    Grade   Ounces
Category       (million)   (g/t) (million)(million)   (g/t) (million)
                =======  ======== =======  =======  ======== =======
Indicated           0.3       430     4.3      0.9       412    11.5
                =======  ======== =======  =======  ======== =======
Inferred            1.6       415    21.9      2.2       447    31.9
                =======  ======== =======  =======  ======== =======

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

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,

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.

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Contact Information

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