SOURCE: Golden Minerals Company

Golden Minerals Company

April 14, 2010 07:00 ET

Golden Minerals Extends High Grade Mineralization at El Quevar, Argentina and Drills High Grade Silver in Zacatecas, Mexico

GOLDEN, CO--(Marketwire - April 14, 2010) -  Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to provide additional drill results for the El Quevar project in northwestern Argentina and results from an initial drilling program for the Pánuco target at our Zacatecas project in Mexico.

El Quevar Project

The Company has recently received additional results from the diamond core drilling program at the El Quevar project in Argentina. A total of approximately 41,000 meters in 201 holes have been drilled to date. The most recent drill program was focused on extending and further defining strike extensions of the high grade Yaxtché mineralized zone and on providing infill drill intercepts in the west area to support an updated resource estimation. Two drills were utilized during this most recent program.

Drilling results indicate that mineralization continues to the west at the Yaxtché zone, beneath the post mineral volcanic cover. Hole QVD-194, drilled 50 meters west of hole QVD-192, which was the previously reported farthest west drill hole, intercepted 11 meters of 1,301 grams per tonne of silver including a 1 meter intercept of 2,898 grams per tonne of silver. Hole QVD-195, drilled 50 meters farther west than hole QVD-194 intercepted 7 meters of 1,025 grams per tonne of silver including a 1 meter intercept of 5,403 grams per tonne of silver. Both QVD-194 and QVD-195 were drilled through at least 200 meters of post mineral volcanic cover. The drill holes are generally angle holes oriented perpendicular to the interpreted trend of the mineralized zone.

Results for infill intercepts in the west area of the Yaxtché zone include hole QVD-176, with a 7 meter intercept of 1,501 grams per tonne of silver and hole QVD-182, with a 5 meter intercept of 944 grams per tonne of silver.

The Yaxtché zone remains open to the east and west along strike, and up and down dip. Drill hole QVD-195 indicates that the Yaxtché mineralization continues at least 1,100 meters west of the previously defined central zone. Further, drill holes QVD-194 and QVD-195 have indicated that mineralization extends under post-mineral volcanic rocks to the west. The Yaxtché zone is one of 13 targets at the El Quevar Project.

This drill program is part of the Company's ongoing exploration program on the El Quevar project, located in Salta Province in northwestern Argentina, where the Company owns or controls mineral and surface rights to approximately 66,000 hectares including additional ground purchased during the first quarter of 2010 which could serve as a common site for processing activities should more than one of the 13 targets on the El Quevar concessions prove to be economic. 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 Company owns or controls a 100% interest in the El Quevar project area. Preparation of a feasibility study for the El Quevar project is currently underway.

Zacatecas Project -- Pánuco Target

The Company has completed approximately 5,900 meters of drilling on an initial 24 drill hole test of its Pánuco silver-gold target at the Zacatecas project, located north of the city of Zacatecas, Mexico. The Pánuco area is one of several targets identified within the Company's property holdings totaling about 14,900 hectares in the district.

The Pánuco target is distinguished by two sub-parallel, northwest trending epithermal veins that can be traced, in aggregate, for more than 4,500 meters. Surface mapping and sampling has revealed that the veins contain consistently anomalous silver and gold values with some associated lead and zinc over the length of exposure. Our surface sample results indicate silver values in the range of 30 to 600 grams per tonne and gold values in the range of trace to 2.5 grams per tonne. A study of fluid inclusions contained in quartz from the veins indicates that the temperature of formation of the exposed veins is favorable for the deposition of mineralization similar to that found in "bonanza type" vein deposits for which central Mexico is well known.

The initial drill test resulted in significant intercepts of high grade silver mineralization in epithermal veins. The drilling returned values of 1,103 grams per tonne silver contained in a 2.5 meter intercept in hole PA-07 and 225 grams per tonne of silver, contained in a 1.8 meter intercept in hole PA-21. Hole PA-24, which was the last hole drilled during the initial test, contained a 10.1 meter intercept of 0.69 grams per tonne of gold and an 8.4 meter intercept of 204 grams per tonne of silver.

These holes were drilled on a horizontal spacing of 100 meters or more in order to obtain a generalized test of the veins over a broad area. Once areas of significant interest are identified, the Company plans to drill more closely spaced holes to better define the mineralization.

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

"We are delighted that recent drilling at our El Quevar high grade silver project indicates that the Yaxtché zone continues to the west beneath the post mineral cover and are equally pleased with the excellent results from the initial drill campaign at the Pánuco target at our Zacatecas project," commented Jeffrey Clevenger, Chairman, President and CEO of Golden Minerals. "We look forward to our scheduled drilling campaigns at our La Pinta project, immediately south of Goldcorp's Peñasquito Mine, and at our Matehuapil project, where we have identified high grade gold in surface samples."

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 80% 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 exploration results and programs at the El Quevar and Pánuco Projects, results of exploration activities, the westward extension and continuity of the El Quevar Yaxtché zone deposit, the potential use of recently acquired property as a processing site for El Quevar, the similarity of the mineralization at Pánuco to "bonanza type" vein deposits for which central Mexico is known, planned exploration activities, and planned feasibility work. These statements are subject to risks and uncertainties, including results of exploration; whether exploration results will support engineering and other feasibility work on El Quevar; changes in geological interpretations, including the interpretations regarding the westward extension and continuity of the Yaxtché zone, including changes resulting from additional drilling, exploration or feasibility work; whether exploration results will be indicative of future exploration results; whether areas of significant interest that justify more drilling will be identified at Pánuco; availability of drills; unexpected variations in ore grade, types and metallurgy; whether any portion of the El Quevar deposit will be converted to reserves; whether the El Quevar feasibility study will result in a positive determination of feasibility; whether the results of additional exploration or feasibility work, including feasibility work at El Quevar on processing alternatives and projected recovery rates, will be positive; uncertainties regarding whether project feasibility will be supported; the early stage of work on the Pánuco project and uncertainty as to whether additional work will support a conclusion that the Pánuco deposit is a "bonanza type" vein deposit; 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