Golden Minerals Reports Production Increases of 28% for Silver and 27% for Gold
GOLDEN, Colo., Oct. 11, 2012 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN); (TSX: AUM) ("Golden Minerals" or "the Company") today provided production results from the Velardena Operations for the quarter ending September 30, 2012.
Payable production for the third quarter was approximately 120,000 ounces of silver and 1,900 ounces of gold, 28% higher for silver and 27% for gold, as compared to the second quarter, and 18% and 19% higher for silver and gold, respectively, as compared to the average quarterly payable production for the first half of 2012. For the first three quarters payable production was approximately 325,000 ounces of silver and 5,100 ounces of gold. Additionally, Velardena produced approximately 290,000 pounds of payable lead and 320,000 pounds of payable zinc in the third quarter and 700,000 pounds of lead and 930,000 pounds of zinc for the the first three quarters of 2012.
Jeffrey Clevenger, President and Chief Executive Officer, commented, "Our target for operationally positive cash flow beginning next year is on track with all of the equipment on site to achieve our mining ramp-up goals. Third quarter production is indicative of the progress being made by the team at Velardena."
Mine development and ramp-up to the 850 tonne per day combined oxide and sulfide plant throughput is proceeding as planned, with a steady state run-rate of 850 tonnes per day anticipated in the third quarter of 2013. Engineering studies are also underway for the phased expansion to 1,150 ore tonnes per day.
About Golden Minerals
Golden Minerals Company is a Delaware corporation based in Golden, Colorado, primarily engaged in silver and gold mining at its Velardena Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.
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 of the timing of anticipated mine development and production ramp-up at the Velardena Operations and the achievement of operational positive cash flow, the sufficiency of mobile mining and other equipment on site for mine development and production ramp-up activities, and the planned expansion of Velardena Operations production; and the requirement for external funding for an expansion. These statements are subject to risks and uncertainties, including unexpected events at the Velardena Operations, including further delays or problems in mine development and plant optimization; operational changes or problems; variations in ore grade and relative amounts, grades and metallurgical characteristics of oxide and sulfide ores; delays or failure in receiving required board or government approvals or permits; technical, permitting, mining, metallurgical or processing issues; failure to achieve anticipated production and improvements in head grades, recoveries and concentrate production and quality at the Velardena Operations; delays in or failure to realize anticipated benefits of plant optimization efforts; need for and timing and availability of external funding on acceptable terms to construct expanded production facilities; unfavorable interpretations and changes in interpretation of geologic information; failure to realize anticipated gold production increases from the addition of the bulk flotation process being installed at the oxide plant; failure to realize anticipated production increases from the anticipated increase in mine development; loss of and inability to adequately replace skilled mining and management personnel; disputes with customers or joint venture partners; failure of undeveloped ore or veins to meet expectations; volatility or other changes in the U.S. and Canadian securities markets; availability and cost of materials, supplies and electrical power required for mining operations and exploration; fluctuations in silver, gold, zinc and lead prices, costs and general economic conditions; changes in political conditions, tax, environmental and other laws; and diminution of physical safety of employees in Mexico and other conditions in the countries in which the Company operates. 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, 2011.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Jerry W. Danni
Executive Vice President
SOURCE Golden Minerals Company