Golden Minerals drills 30.3 m of 3.1 g/t Au at Rodeo

2020-10-01 06:59 ET - News Release

Mr. Warren Rehn reports

GOLDEN MINERALS DRILLS 30.3M GRADING 3.1 G/T AU AT THE RODEO GOLD PROJECT

Golden Minerals Company has received final assays from its resource definition drill program at the Rodeo gold-silver project located in Durango state, Mexico.

Assay results from the final 14 holes of the 35 holes drilled in the 1,400-metre drill program show continued wide zones of high-grade near-surface gold mineralization. Drill hole depths averaged 40 metres. Orientations of drill holes are shown in the associated table. Mineralized material consists of highly silicified epithermal veins and breccias hosted in felsic volcanic rocks. Significant results are summarized in the table below, with complete results available on the company website.

Hole ID         Hole length     From      To    Interval    Est. true thickness      Gold   Silver
                        (m)      (m)     (m)         (m)                    (m)     (g/t)    (g/t)

RDO-20-021               60     21.0    37.6        16.6                   15.8      2.05     16.4
including                       21.0    30.0         9.0                    8.6      3.25     24.3
RDO-20-022               40     14.0    31.0        17.0                   15.3      1.09      4.3
RDO-20-023               40      0.0    30.0        30.0                   25.5      2.49      5.8
including                        7.1    14.9         7.8                    6.6      5.95      7.5
RDO-20-024               40      3.3    32.0        28.7                   25.8      1.22      4.8
including                        9.9    16.9         7.0                    6.3      2.99      3.5
RDO-20-025               35      5.8    24.2        18.4                   15.6      0.78      2.8
RDO-20-026               45      2.5    20.1        17.6                   15.0      0.74      3.4
RDO-20-027               40      2.3    10.9         8.6                    7.7      0.98      2.6
RDO-20-028               40      0.0    40.0        40.0                   34.0      1.63      6.4
including                       10.2    30.1        19.9                   16.9      2.93     10.0
including                       18.0    28.2        10.2                    8.7      4.12     15.4
RDO-20-029               55      0.0    55.0        55.0                   49.5      1.77     22.2
including                        5.5    21.0        15.5                   14.0      2.37     11.2
including                       32.8    51.0        18.2                   16.4      2.42     48.4
RDO-20-030               40      4.5    15.8        11.3                    9.6      0.97      2.0
RDO-20-031               40      0.0    30.3        30.3                   25.8      3.10      9.6
including                        9.8    21.1        11.3                    9.6      6.34     15.3
RDO-20-032               35      0.0    35.0        35.0                   24.5      1.32      4.6
including                        1.5    18.5        17.0                   11.9      1.83      4.7
RDO-20-033               40      0.0    40.0        40.0                   28.0      1.96      8.3
including                       11.7    25.7        14.0                    9.8      4.20     16.9
RDO-20-034               35     10.0    35.0        25.0                   17.5      1.36      5.2
including                       12.4    21.0         8.6                    6.0      2.03      6.3
including                       27.9    35.0         7.1                    5.0      1.57      5.9

The drill program was designed to provide greater detail on the controls of gold mineralization at Rodeo and to provide additional material for metallurgical and geotechnical testwork. Confirmation of continuity of the gold grades in the core of the deposit is an important step toward the future development of the Rodeo project as outlined in the recent preliminary economic assessment published on May 28, 2020.

Golden Minerals has submitted eight samples to Resource Development Inc. in Wheat Ridge, Colo., for metallurgical testwork to measure the gold and silver recoveries at a range of gold grades to fully understand the gold recovery throughout the deposit.

Warren Rehn, president and chief executive officer of Golden Minerals, commented: "We are pleased with the continued positive results from the drilling at Rodeo. The drill program has provided us with significant additional information on the details of the high-grade gold zone, expanding the extent of potentially minable material in many areas of the planned open pit."

About Rodeo

Rodeo is a 1,866-hectare gold project located in Durango state, Mexico, approximately 80 kilometres west of the company's Velardena properties and processing mills. Golden acquired the Rodeo property subject to a royalty interest due to La Cuesta International in the second quarter 2015, prior to which exploration by other companies identified a gold-bearing system exposed at surface. Golden conducted a 2,080-metre core drilling program in 2016 and outlined a potentially open-pit minable, high-grade resource as reported in a National Instrument 43-101 technical report dated Jan. 26, 2017.

Classification      Cut-off      Tonnes          Au          Ag          Au          Ag
                                   (mt)       (g/t)       (g/t)       (koz)       (koz)

Indicated              0.83         0.4         3.3          11          46         200
                                                          
Notes
(1) Cut-off grade and Au equivalent were calculated using metal prices of $1,220 and 
$17 per troy ounce of Au and Ag, recoveries of 77 per cent and 90 per cent Au and Ag.
(2) Mineral resources have been pit shell constrained using the Lerch Grossman 
algorithm with cost inputs per tonne of $7.50 mining, $10 trucking and $20 
processing. A break-even cut-off including trucking and processing costs per block 
was applied to a block model within the optimized shell.
(3) Metal prices do not exceed three-year trailing average as of the end of December, 
2016, per Securities and Exchange Commission guidance. 
(4) Reported indicated mineral resources are equivalent to mineralized material under 
SEC Industry Guide 7.

Review by qualified person and quality control

The technical contents of this press release have been reviewed by Matthew Booth, a qualified person for the purposes of NI 43-101. Mr. Booth has over 17 years of mineral exploration experience and is a qualified person member of the American Institute of Professional Geologists (CPG 12044).

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 International Organization for Standardization 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 Company

Golden Minerals is a Delaware corporation based in Golden, Colo. The company is primarily focused on advancing its Rodeo and Velardena properties in Mexico and, through partner-financed exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing mining properties in Mexico, Argentina and Nevada.

We seek Safe Harbor.

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