Golden Minerals Announces Acquisition Of Santa Maria Mine In Mexico And Drill Results From Los Azules
GOLDEN, Colo., Aug. 12, 2014 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) is pleased to announce it has signed a contract to acquire the Santa Maria mine, a privately held property near the Parral District of southern Chihuahua State, Mexico located approximately 20 kilometers from the Company's Los Azules project. Separately, the Company has released results of additional drilling at the Los Azules exploration property.
The Santa Maria mine hosts the Santa Maria silver (Ag) and gold (Au) bearing quartz vein cutting Cretaceous calcareous sedimentary rock that has produced historically on a small scale from a 2.1 meter wide epithermal vein. The vein is accessed by a three meter by three meter ramp from surface to a depth of approximately 75 meters. The Company recently completed a project to rehabilitate access to deeper levels of the mine that were previously inaccessible. Sampling from these levels has yielded encouraging results. The following table of underground channel sample results represents selected samples from over 370 total channel samples. Silver equivalents have been calculated at 60:1, silver to gold.
|
Channel |
From |
To |
Width (m) |
Au ppm |
Ag ppm |
Ag EQ ppm |
Pb % |
Zn % |
|
SM-72 |
1.0 |
1.6 |
0.6 |
1.1 |
1020 |
1088 |
0.3 |
0.7 |
|
SM-74 |
1.5 |
2.4 |
0.9 |
3.6 |
1240 |
1458 |
1.2 |
2.6 |
|
SM-74 |
3.5 |
5.0 |
1.5 |
0.2 |
352 |
366 |
0.1 |
0.8 |
|
SM-77 |
1.0 |
2.1 |
1.1 |
0.9 |
734 |
789 |
0.4 |
1.0 |
|
SM-78 |
0.6 |
1.3 |
0.7 |
0.5 |
568 |
600 |
0.9 |
1.7 |
|
SM-90 |
3.1 |
3.3 |
0.3 |
0.8 |
340 |
390 |
0.5 |
0.7 |
|
SM-100 |
- |
1.0 |
1.0 |
1.1 |
2347 |
2413 |
0.6 |
5.4 |
|
SM-100 |
1.0 |
2.0 |
1.0 |
1.0 |
3126 |
3188 |
0.9 |
3.6 |
|
SM-101 |
- |
1.0 |
1.0 |
0.5 |
427 |
457 |
0.2 |
1.0 |
|
SM-101 |
1.0 |
2.0 |
1.0 |
1.8 |
1422 |
1532 |
1.6 |
3.7 |
|
SM-102 |
0.8 |
1.2 |
0.4 |
0.9 |
383 |
440 |
0.2 |
2.3 |
|
SM-104 |
1.4 |
2.4 |
1.0 |
0.5 |
389 |
419 |
0.4 |
1.5 |
|
SM-105 |
1.6 |
2.7 |
1.1 |
0.4 |
314 |
338 |
0.2 |
0.5 |
|
SM-105 |
2.7 |
3.4 |
0.8 |
0.4 |
671 |
698 |
0.2 |
0.3 |
|
SM-107 |
0.7 |
1.9 |
1.2 |
1.4 |
1403 |
1490 |
1.0 |
1.3 |
|
SM-107 |
1.9 |
2.2 |
0.3 |
2.6 |
8096 |
8254 |
1.8 |
4.8 |
|
SM-113 |
1.1 |
1.7 |
0.6 |
2.9 |
743 |
919 |
2.1 |
7.1 |
|
SM-116 |
1.0 |
2.3 |
1.3 |
1.0 |
419 |
479 |
1.9 |
1.8 |
|
SM-116 |
2.3 |
3.3 |
1.0 |
0.7 |
527 |
570 |
1.1 |
2.7 |
Full results from the sampling programs will be posted on Golden Minerals website at www.goldenminerals.com.
The Santa Maria mine is located approximately 15 kilometers southeast of the city of Santa Barbara and about 20 kilometers southeast of Los Azules. Historic small scale mining exploited oxide portions of the vein system above the elevation of the current access drifts. Modern ramp construction to the vein was completed within the last five years.
Golden Minerals holds the 18 hectares of concessions in the Santa Maria property through its wholly‑owned Mexican subsidiary Minera de Cordilleras, S. De R.L. de C.V under a purchase option agreement. The agreement calls for payments of US$ 1.6 million over 1.5 years to complete the purchase. An initial option payment of $35,000 has been made.
The Company plans to initiate a drill program during the third quarter to further test the depth extension of the Santa Maria vein including approximately 2000 meters at a cost of about $300,000.
Jeffrey G. Clevenger, Chairman, President and Chief Executive Officer of Golden Minerals, said, "Our Mexican exploration team has performed extremely well by discovering opportunities for the Company near the Parral District in Southern Chihuahua State. Drilling results from Los Azules and face sampling at Santa Maria give us encouragement as to the Company being able to establish a new production base in the District, using primarily excess equipment from the Velardena Properties."
Los Azules
The Company has completed an additional 5400 meters of drilling at Los Azules for a project total of about 6900 meters in 29 holes and reports the following additional significant drill intercepts:
|
Drill Hole |
From |
To |
Drill Width (m) |
Au ppm |
Ag ppm |
Au EQ ppm* |
|
AZ14-02A |
111.2 |
111.9 |
0.7 |
4.4 |
7 |
4.5 |
|
AZ14-03 |
117.0 |
117.5 |
1.3 |
25.3 |
32 |
25.9 |
|
AZ14-04 |
139.6 |
140.3 |
4.2 |
2.3 |
80 |
3.7 |
|
AZ14-04 |
386.6 |
387.3 |
3.2 |
3.4 |
12 |
3.6 |
|
AZ14-14 |
221.1 |
221.3 |
1.3 |
6.4 |
15 |
6.7 |
|
AZ14-14 |
307.1 |
309.5 |
2.4 |
0.6 |
733 |
12.8 |
|
AZ14-14A |
194.4 |
195.6 |
1.2 |
1.1 |
238 |
5.1 |
|
AZ14-14A |
305.5 |
306.2 |
0.9 |
7.3 |
378 |
13.6 |
|
AZ14-23 |
135.8 |
136.4 |
0.6 |
2.9 |
30 |
3.4 |
|
AZ14-27 |
54.0 |
54.8 |
0.8 |
6.0 |
13 |
6.2 |
|
* calculated at 60:1 Ag:Au | ||||||
Complete drill results will be posted on Golden Minerals website at www.goldenminerals.com.
Review by Qualified Person and Quality Control
The technical contents of this press release have been reviewed by Warren M. Rehn, M.Sc., a Qualified Person for the purposes of Canadian National Instrument 43-101. Mr. Rehn has over 33 years of mineral exploration experience and is a QP member of the Society for Mining Metallurgy and Exploration.
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 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 Zacatecas, Mexico. Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories in the US or Canada.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on restarting operations at its Velardena Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico.
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 legislation, including statements regarding channel sample results and interpretations of channel sample results at Santa Maria mine, anticipated drilling at the Maria Mine, drill results at the Los Azules project, potential establishment of a new production base near the Parral District, and potential use of excess equipment from the Velardena Properties. These statements are subject to risks and uncertainties, including results of drilling at Santa Maria; changes in geological, geostatistical and other interpretations of the information from channel sample and drill programs; whether sufficient material with favorable grades and metallurgy can be identified at Santa Maria or Los Azules to support economic mining; whether economic processing alternatives for Santa Maria or Los Azules material can be identified and procured; unfavorable interpretations of geologic information; unfavorable results of metallurgical testing;, unexpected variations in mineral grade, types and metallurgy; fluctuations in relevant metal prices; technical and permitting issues or delays in mining and exploration; increases in cost or other problems that might negatively affect the Company in conducting potential drilling and exploration activities and otherwise advancing the Santa Maria and Los Azules properties; and financial market conditions. 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, 2013.
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060
[email protected]
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SOURCE Golden Minerals Company
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