GOLDEN, Colo., Jan. 25, 2013 /PRNewswire/– Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") is pleased to provide positive results from a recent drill program at El Quevar. This drilling was not included in the 8 June 2012 43-101 Resource Estimate report. El Quevar is located in the Salta Province of northwestern Argentina.
The program included 16 core holes totaling approximately 2,400 meters. The Company has received results from drill hole QVD-378 located one kilometer (km) east of the previously defined Yaxtche deposit. The new drill hole intersected eight meters (drill width) with an average grade of 779 grams per tonne silver (25 ounces per ton: 779 parts per million (ppm)) from 25 meters to 33 meters. The intercept is located along the Yaxtche mineralized trend and may represent a significant extension of the deposit. A resource was reported at Yaxtche dated 8 June 2012 containing an indicated resource of 32 million oz of silver and an inferred resource of 30 million ounces of silver in a high sulfidation, structurally controlled deposit along a 1.5 km strike length. True widths are not definitive but the drill hole crossed the mineralized zone at a high angle. QVD 378 is north of previous drilling designed to evaluate the projected strike continuation of the Yaxtche zone in this area. More drilling is needed to establish the continuity and grade, both laterally and to depth.
The Company has also received positive results from a drill hole which is a 475 meter step out along the Quevar North structure that hosts the previously-described Sharon target, located approximately 5 km north of the Yaxtche deposit. Drill hole QVD-383 cut a three meter interval (drill width) grading 374 grams per tonne silver (12 ounces per ton: 374 ppm) from 27 meters to 30 meters within a broader zone of six meters averaging 229 ppm silver from 24 meters to 30 meters. The true width is not definitive although the core appears to cut mineralized structures at a high angle, indicating that true widths are approximately 70 to 90% of observed thicknesses. This new hole demonstrates the possible continuation of mineralization found in hole QND-002, drilled in 2010 at the Sharon target. This older drill hole cut mineralization from 63 meters to 91 meters, with 28 meters averaging 1,302 ppm silver (41.8 ounces per ton) and containing higher grade intervals of six meters of 3,113 ppm silver between 63 meters and 69 meters and five meters of 2,572 ppm silver from 85 meters to 90 meters. The Company believes the mineralized zone at Quevar North to be similar in structural control to the Yaxtche zone.
Targets in the Quevar South and Quevar North areas were selected based on surface samples and geology in the search for additional silver resources. Results have been received for 13 of the 16 drill holes. Results from drill holes QVD-373 to QVD-377, QVD-379 to QVD-382, and QVD-384 to QVD-385 returned no significant values. Results from three holes are pending. Final results will be posted to the Company's website once received and verified. Golden Minerals controls approximately 55,000 hectares of mineral rights in the El Quevar district located 150 kilometers northwest of Salta, Argentina.
Jeffrey Clevenger, Chairman, President and Chief Executive Officer, noted, "We are delighted with the results of the recent reconnaissance drill program at El Quevar as it supports our long-standing thesis that El Quevar exhibits characteristics of an emerging new silver district."
Review by Qualified Person and Quality Control
The technical contents of this press release have been reviewed by Robert Blakestad, M.Sc., P. Geo., L.P.G., a Qualified Person for the purposes of Canadian National Instrument 43-101. Mr. Blakestad has over 42 years of mineral exploration experience and is a Professional Geoscientist and a 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 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 analysis is performed at an independent ISO 9001:2001 certified laboratory in Mendoza, Argentina. Pulp splits of mineralized intervals are re-assayed at certified independent referee laboratories in Chile and Canada.
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.
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 the exploration results and programs at the El Quevar project, including potential exploration activities, anticipated further drilling activities, and interpretations of drilling results of infill drilling. These statements are subject to risks and uncertainties, including results of exploration including potential additional drilling at El Quevar; changes in geological, geostatistical and other interpretations of the Yaxtche deposit and Quevar South and Quevar North targets; unfavorable interpretations of geologic information; availability of drills; unexpected variations in mineral grade, types and metallurgy; fluctuations in silver, gold, zinc, lead and other 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 El Quevar 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, 2011. For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
SOURCE Golden Minerals Company