GOLDEN, Colo., Feb. 27, 2014 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") has recently received assay results from eight drill holes totaling 1,490 meters from drilling at its Los Azules exploration project located in southern Chihuahua, Mexico.
A table of selected results follows. All drill results are available on the Golden Minerals website at www.goldenminerals.com.
Drill Width (meters)
True Width (meters)
The Los Azules property is located approximately 20 kilometers west of San Francisco de Oro in southernmost Chihuahua, Mexico and about 45 kilometers west of Hidalgo del Parral. Los Azules hosts a 2-kilometer, north-south trending and gold-bearing epithermal quartz vein system cutting Tertiary felsic volcanic rocks and a felsic hypabyssal stock. In the nearby San Francisco de Oro district, veins and replacements are hosted in the Cretaceous Parral Formation clastics and carbonates which underlie the volcanic rocks at the Los Azules project and are exposed in the northern portion of the claim block. Although the Company has not yet intersected the Parral formation, management expects it to be a favorable host for mineralization at depth. Historic mining on the vein system at Los Azules reportedly produced 500,000 tonnes of gold ore averaging 11 g/t gold (Servicio Geologico Mexicano, p. 411 of Monografia Geologico-Minero del Estado de Chihuahua). Historic mining exploited oxide portions of the vein system above the elevation of our current access drifts.
Golden Minerals holds 233 hectares of concessions in the Los Azules property through its wholly‑owned Mexican subsidiary Minera de Cordilleras, S. De R.L. de C.V under a purchase option agreement. The purchase agreement requires a series of option payments over a four-year period totaling $2.0 million, with $0.1 million required during each of the first and second years and a 5 percent net smelter return royalty, half of which may be repurchased for $1.0 million.
In the fourth quarter 2013, Golden Minerals began drilling at the Los Azules property as part of a planned 2,000-meter drill program to test down dip targets on the previously mined vein system. Drill holes were collared both underground and at surface in this program. As part of the drill program, Golden Minerals rehabilitated about 650 meters of underground drifts, and the Company continues these rehabilitation efforts to access the northern portion of the vein system which depicts better widths and higher silver grades in surface sampling.
The initial drill program (costing $0.6 million) has been completed, and based upon results to date, the Company has authorized an additional $1.1 million for drilling focused on definition of a target gold and silver resource within the first 250 vertical meters along the strike of the vein beneath the historic mined areas.
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 Chihuahua or Zacatecas, Mexico. Prepared samples are direct-shipped to an ISO 9001:2001 certified laboratory in Canada.
About Golden Minerals Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on efforts to create a new mining and processing plan for its Velardena Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico.
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 the exploration results and programs at the Los Azules project, including potential exploration activities, anticipated further drilling activities, and interpretations of drilling or underground rehabilitation or drilling results of infill drilling. These statements are subject to risks and uncertainties, including results of exploration including potential additional drilling at Los Azules; changes in geological, geostatistical and other interpretations of the information from drill programs; unfavorable interpretations of geologic information; availability of drills; unexpected variations in mineral grade, types and metallurgy; fluctuations in relevant metal prices; technical and permitting issues; increases in cost or other problems that might negatively affect the Company in conducting potential drilling and exploration activities and otherwise advancing the Los Azules project; 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, 2012.