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Message: Gold Minerals starts drilling at Santa Maria

 

Gold Minerals starts drilling at Santa Maria

 

2017-09-07 06:52 ET - News Release

 

Ms. Karen Winkler reports

GOLDEN MINERALS ANNOUNCES START OF NEW DRILL PROGRAM AT SANTA MARIA

Golden Minerals Company has started a new drill program at its Santa Maria silver and gold project located near Santa Barbara in Chihuahua state, Mexico.

The drill program targets extensions of the vein deposit described in the previous preliminary economic assessment (PEA) and resource update reported March 30, 2017.

Drilling commenced Aug. 25, 2017. Two holes have been completed to date, SM17-01 and SM17-15, both with visible mineralized intercepts. These two holes bracket the western and eastern limits of the strike extent of the vein currently being tested. Assay results are pending and initial results are expected to be available early in the fourth quarter 2017.

Golden Minerals recently acquired the right to purchase claims that cover the eastward extension of the Santa Maria vein, as reported in August, 2017. The new claims provide a 600-metre potential extension to the strike length of the vein system and add substantial downdip expansion potential. Surface exposures of the vein on the new claims have yielded values of silver and gold over potentially minable widths of a magnitude similar to the existing resource grade.

The drill program now under way is designed to expand the current resource by drilling at least eight holes totalling 1,500 metres along 400 metres of the projected strike extension of the vein system adjacent to and east of the existing resource. Golden has begun this drill program with the goal of at least doubling the size of the existing resource.

Santa Maria mineral resource estimate dated March 30, 2017

Indicated and inferred mineral resource estimates as previously reported and dated March 30, 2017, for Santa Maria are shown in the associated table.

 

                Cut-off grade
Classification      recovered   Tonnes    Ag     Au   AgEq      Ag     Au    AgEq   Dilution
                   (g/t AgEq)          (g/t)  (g/t)  (g/t)   (moz)  (koz)   (moz)        (%)

Indicated                 175  180,000   304    1.4    404    1.73    8.1    2.31         10 
Inferred                  175  120,000   343    1.0    411    1.37    3.9    1.64         19

(1) Mineral resources are reported as diluted tonnes and grade. 
(2) Cut-off grade and silver equivalent calculated using metal prices of $17.3 
and $1,222 per troy ounce of Ag and Au, respectively, with a ratio of 70.6:1, the 
three-year trailing average as of the end of December, 2016.
(3) Cut-off applied to diluted Ag equivalent blocks grades using recoveries of 90
per cent and 80 per cent for  Ag and Au, respectively.
(4) Reported indicated mineral resources are equivalent to mineralized material 
under SEC Industry Guide 7, inferred mineral resources are not a recognized 
category under SEC Industry Guide 7.
(5) Columns may not total due to rounding.

 

Property title and ownership

Golden has the right to acquire the Santa Maria property under an option agreement that requires approximately $1.4-million more in payments over the next four years, a portion of which will be subject to a 2-per-cent net smelter return royalty on production.

About Golden Minerals Company

 

Golden Minerals is a Delaware corporation based in Golden, Colo. The company is primarily focused on acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardena processing plants.

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