SOURCE: Golden Minerals Company

Golden Minerals Company

April 29, 2010 08:00 ET

Golden Minerals Initiates Feasibility Study at El Quevar

GOLDEN, CO--(Marketwire - April 29, 2010) - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce the initiation of a feasibility study for the El Quevar project, located in Salta Province in northwestern, Argentina.

Portal site excavation and pad preparation have been completed for the underground decline. Mining equipment has been ordered, including a single boom jumbo drill and five yard scooptram, with deliveries expected in May. Driving of the 4 meter by 4.5 meter decline is expected to start by the end of May. The decline and underground drifting will provide information that will be used to verify the mine model, confirm the mine plan, and provide bulk samples for additional metallurgical testing.

The Company has engaged the services of Micon International Limited (Micon) to conduct the feasibility study for the El Quevar project. Micon is recognized as an international leader in preparing feasibility studies and developing technical reports for mineral development projects. In addition to the feasibility study, Micon will also be providing an updated resource estimate for the project. 

Metallurgical studies in support of the feasibility study are ongoing. An Environmental Impact Assessment is also underway, with environmental baseline studies nearing completion by Vector Engineering. Vector Engineering is a civil, geotechnical and environmental engineering firm specializing in design, construction engineering and environmental management for mining projects worldwide.

The Company expects to provide an updated resource estimate for the El Quevar project during the third quarter of this year. The feasibility study is scheduled to be completed by the end of 2010.

Golden Minerals' exploration activities and the majority of drilling to date have been concentrated on the Yaxtché target, which is one of 13 targets on the approximately 66,000 hectare El Quevar concessions. The Company owns or controls a 100% interest in the El Quevar project area. The Yaxtché target is an east-west trending, northerly dipping zone of mineralization hosted in volcanic and intrusive rocks of Tertiary age. More than 41,000 meters in 201 holes have been drilled to date. Recent drilling has demonstrated that the Yaxtché structure extends beneath a post mineral cover for a total strike length in excess of 2.3 kilometers. The structure remains open along strike and both up and down dip. In-fill drilling on the west extension of the Yaxtché structure is currently underway. 

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 anticipated delivery dates of mining equipment at El Quevar, anticipated commencement dates of underground drift construction at El Quevar, planned use of information developed from the decline and underground drifting, preparation of a feasibility study and updated resource estimate for El Quevar by Micon, timing of completion of the feasibility study and updated resource estimate, existence of 13 targets on the El Quevar property, exploration results and programs at El Quevar, the westward extension, continuity and strike length of the El Quevar Yaxtché structure, 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, continuity and strike length of the Yaxtché structure, including changes resulting from additional drilling, exploration or feasibility work; whether exploration results will be indicative of future exploration results; delays in El Quevar equipment deliveries, commencement of underground drift construction, feasibility study completion and resource estimate update or development of information that does not support a feasibility study or resource update; uncertainties regarding 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; 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 for the year ended December 31, 2009.

Contact Information

  • For additional information please visit http://www.goldenminerals.com/ or contact:
    Golden Minerals Company
    Jerry W. Danni
    (303) 839-5060
    Sr. Vice President, Corporate Affairs