SOURCE: Golden Minerals Company

Golden Minerals Company

September 27, 2010 18:00 ET

Golden Minerals Provides Update on Drill Campaign at El Quevar

GOLDEN, CO--(Marketwire - September 27, 2010) -  Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today provided an update on the drill campaign at the El Quevar project. The El Quevar project, which is 100% controlled by Golden Minerals, is located in the Salta Province of northwestern Argentina.

The Company currently has three drills operating at the El Quevar project, with a fourth drill en route to the project. The drill campaign is focused on following up on the results reported from a drill hole recently completed at the Mani target, located 500 meters south of the main Yaxtché deposit, and from a hole drilled on the eastern portion of the Yaxtché deposit. Drilling is also planned for the Carmen target, located 300 meters north of the Yaxtché deposit. In addition, drilling is underway on the west side of post mineral cover at the Yaxtché deposit to test the potential western extension of the deposit. When the fourth drill arrives, additional infill drilling will resume on the main zone of the Yaxtché deposit to provide more detailed information about the mineralization, including drilling to offset certain drill holes, including the recently reported drill hole QVD-211, which intersected 146 meters of mineralization averaging 317 grams per tonne of silver. The offset drilling should help to confirm the size and shape of these intercepts.

Drill hole QVD-220 recently reported for the Mani target contained a five meter intercept of 515 grams per tonne silver and a two meter intercept of 411 grams per tonne silver. Drill hole QVD-217, located on the eastern portion of the Yaxtché deposit, where limited drilling has occurred to date, reported a two meter intercept of 970 grams per tonne silver and a two meter intercept of 489 grams per tonne silver. As previously reported, this intercept suggests that the main Yaxtché deposit may extend further east than previously believed. Preliminary results from drill hole QVD-221, which is the first hole of a planned ten hole drill program on the west side of the post mineral cover at the Yaxtché deposit, encountered a zone of strong silicification containing lead mineralization but no silver mineralization, similar to the style of mineralization found in holes peripheral to the main zone of mineralization at the Yaxtché deposit. Previous drilling at the Carmen target included drill hole QVD-139, an angle hole which intersected four meters averaging 200 grams per tonne of silver and 1.98 grams per tonne of gold.

The Yaxtché deposit is one of 11 targets currently identified at the El Quevar project. In addition to further drill testing of the targets described above, drilling is planned for the Quevar Norte targets, where an initial six hole drill program was previously completed on three targets, with three of the six holes intersecting silver mineralization of greater than 100 grams per tonne, including Hole QND-002, which averaged 1,289 grams per tonne over an intercept of 28 meters at the Sharon target. The Quevar Norte targets are located approximately three kilometers north of the Yaxtché deposit.

As previously reported, the Company has deferred completion of the final feasibility study until additional drilling has been completed to further define the extent of the deposit.

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

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 estimated to be from 90% 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 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.

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 Mexico and South America. The Company has a portfolio of more than 25 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 and applicable Canadian securities laws, including statements regarding indicated and inferred resource estimates at the El Quevar project; the exploration results and programs at the El Quevar project, including planned additional resource expansion drilling; results of exploration activities; planned exploration activities; potential extension of the Yaxtché deposit and potential for a higher production rate than initially contemplated; deferral of completion of the El Quevar feasibility study; planned feasibility work. These statements are subject to risks and uncertainties, including results of exploration, including the additional planned drilling at El Quevar, and whether the results support feasibility work on El Quevar; changes in geological, geostatistical and other interpretations of the Yaxtché deposit including the interpretations regarding the possible eastward and westward extensions, continuity and strike length of the Yaxtché deposit, which may include changes resulting from additional drilling, exploration and feasibility work; availability of drills; unexpected variations in ore grade, types and metallurgy; whether the feasibility of the project will be reduced as additional exploration and feasibility work is completed, including feasibility work on processing alternatives, projected recovery rates and costs including capital costs, operating costs and taxes; results of El Quevar feasibility work and uncertainties regarding whether El Quevar project feasibility will be supported; unexpected increases in costs of materials, supplies and personnel used in exploration activities; fluctuations in silver and other metal prices; technical and permitting issues; changes in applicable law that might increase the cost or otherwise negatively affect the Company in advancing the El Quevar project; financial market conditions; 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 Company's Annual Report on Form 10-K for the year ended December 31, 2009.

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Contact Information

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