Golden Minerals Provides an Update on the Development Drift at El Quevar and Reports Additional High Grade Drill Intercepts
GOLDEN, CO -- (Marketwire) -- 04/06/11 -- Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM) ('Golden Minerals' or 'the Company') today provided an update on the progress of underground development drifting at the El Quevar project and also announced additional high grade intercepts at holes drilled on the El Quevar Yaxtché deposit. The El Quevar project is located in the Salta Province in northwestern Argentina.
The Company has completed approximately 430 meters of development drifting at El Quevar at the 4,774 meter elevation, and has advanced approximately 200 meters along strike in the central Yaxtché zone. The drifting has encountered over 40 mineralized structures believed to be tension faults. These structures trend to the north and east, averaging N60E, and are steeply dipping to the northwest. The Company is conducting uniform channel sampling of these structures. Although they are narrow, generally less than a quarter of a meter in width, indications from x-ray fluorescence (XRF) technology show that the structures tend to be of substantial grade, typically in excess of one kilogram per tonne silver. These structures were not anticipated in the current modeling of the El Quevar deposit, in which mineral concentrations are modeled to follow the alteration envelope, generally trending N60W. The Company has decided to delay completion of the previously announced Preliminary Economic Assessment (PEA) to allow further work to assess the impact that these structures may have on the mining plan and global El Quevar resource. Delivery of a purchased underground diamond drill, anticipated in late April, will permit the drilling of a fan pattern of holes to better understand the interaction of these structures with the other mineralization at El Quevar. Continuation of the development drift should also contribute to the understanding of these newly discovered structures, and provide further information regarding confirmation of the mine model.
Surface drilling at El Quevar continues to be focused on the Yaxtché deposit. Recent drill holes for which results have been received include QVD-251, located on the far western end of the Yaxtché deposit (through the post-mineral cover), which intersected six meters averaging 629 grams per tonne silver. Drill hole QVD-259, drilled as an infill hole in the central part of the West Yaxtché, returned three meters of 558 grams per tonne silver. Drill hole QVD- 262, another infill hole located about 250 meters west of QVD-259, returned a five meter intercept of 592 grams per tonne silver that included a two meter intercept averaging 1,314 grams per tonne silver, a 12 meter intercept of 437 grams per tonne of silver that included a two meter intercept of 1,571 grams per tonne silver, and a four meter intercept that averaged 460 grams per tonne silver. Drill hole QVD-263, located about 150 meters southeast of QVD-262, intersected 14 meters averaging 551 grams per tonne silver, including a three meter intercept of 1,301 grams per tonne silver.
The Company has completed more than 200 diamond drill holes to define the entire two kilometer long Yaxtché mineralized zone. Of these holes, approximately 90 percent are within the alteration zone where mineralization has been identified. Of the holes within the alteration zone, 75 percent have encountered silver mineralization greater than 100 grams per tonne silver over a minimum one meter intercept.
The Company has also received results for an additional drill hole recently completed on the western trace of the ManiSub target, which is located approximately 500 meters southwest of the Yaxtché deposit. Drill hole QVD-237 contained an 18 meter intercept that averaged 192 grams per tonne silver, which included a two meter intercept of 583 grams per tonne silver. Previously reported drill hole QVD-220, located on the ManiSub approximately 1,200 meters east of QVD-237, returned two meters averaging 411 grams per tonne silver and an additional intercept of six meters of 463 grams per tonne silver. Additional drilling is now planned for the ManiSub along the approximately 1,200 meter strike length between drill holes QVD-220 and QVD-237. The Company may also conduct additional drilling during 2011 at the Carmen target, located approximately 500 meters north of the Yaxtché deposit. To date 24 drill holes have been completed at the Carmen target. Highlights include drill hole QVD-228 which averaged 524 grams per tonne silver and 0.29 grams per tonne gold over two meters, along with 405 grams per tonne silver and 2.2 grams per tonne gold over an additional two meters, and drill hole QVD-231 which averaged 504 grams per tonne silver over six meters.
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 http://www.goldenminerals.com/.
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 75% 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 large portfolio of 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, including statements regarding the exploration results and programs at the El Quevar project, the interpretation of mineralized structures encountered in the development drift, planned and potential exploration activities, delay of the Preliminary Economic Assessment of El Quevar, anticipated delivery of a purchased underground diamond drill in late April and planned fan pattern drilling. These statements are subject to risks and uncertainties, including uncertainties regarding the timing and results of the El Quevar Preliminary Economic Assessment, results of exploration, including the additional planned surface and underground drilling at El Quevar; changes in geological, geostatistical and other interpretations of the Yaxtché deposit including the interpretation of mineralized structures encountered in the development drift, and the extension, continuity and strike length of the Yaxtché deposit, which may include changes resulting from additional drilling, fan drilling, exploration and incorporation of additional information developed during extension of the development drift; availability of drills; unexpected variations in ore grade, types and metallurgy; uncertainties regarding whether the El Quevar resource and mine models will be confirmed and what kind of variations from the current model may be developed; technical or other difficulties that could be encountered in advancement of the development drift, 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 development drift, conducting planned drilling and exploration activities and otherwise advancing 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, 2010.
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