Golden Minerals starts drilling at Rodeo

2020-07-08 06:48 ET – News Release

Mr. Warren Rehn reports


Golden Minerals Company has commenced drilling at its Rodeo gold and silver property in Durango, Mexico.

Golden Minerals plans to drill approximately 20 holes to better define the high-grade core of the Rodeo deposit. The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulphidation vein system with encouraging results, as shown in the associated table.

Hole ID             Thickness                 Au                 Ag
                          (m)              (g/t)              (g/t)

BR-01                    5.08               1.73               8.36
BR-01                     6.1                4.7              24.04
BR-02                   28.44               3.04               5.28
including                9.15               5.28                4.5
BR-03                    25.4               3.79              11.04
including               11.17               6.23              15.89
BR-05                   22.35               3.28              16.56
including                8.12               5.99              24.62
BR-06                   28.45               4.87               10.5
including               11.17               8.29              12.43
BR-06                    6.09               4.91              10.68
BR-06                    5.08               2.84              18.26
BR-10                     5.8                2.3
BR-11                    9.14               2.92               2.77
BR-14                   10.16               1.84              17.62
BR-19                    8.13               2.37              32.15
BR-21                    9.15               3.32              17.71
BR-21                    9.15               2.25              21.13
RD-15                      18               1.69                6.9
RO-11-001                31.2               5.99              11.88
RO-11-026               19.15               2.58               4.99
including                 6.6               2.52              31.37
RDO16-05                 19.2               1.93               6.51
RDO16-06                 12.4               3.01              10.86
RDO16-07                 10.1               2.58               6.83

* All results previously reported in technical report dated Jan. 
26, 2017.

The objectives of the drilling program are to provide greater detail on the gold mineralization at Rodeo and to provide sample material for metallurgical and geotechnical testing, an important step toward the future development of the Rodeo project outlined in the recent preliminary economic assessment filed on May 28, 2020.

Warren Rehn, president and chief executive officer of Golden Minerals, commented: “The proximity of the Rodeo project to our existing processing facilities at Velardena presents an excellent opportunity to generate significant revenue from Rodeo starting in early 2021. We are optimistic that the drilling will improve our confidence in the deposit and enable us to continue to move towards development.”

Rodeo is an open-pit gold project within a 1,900-hectare claim located in the state of Durango, 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 the surface. Golden conducted a 2,080-metre core drilling program in 2016 and outlined a minable open pit with a high-grade resource base as shown in the associated table.

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

Indicated                       0.83           0.4       3.3       11          46            200

(1) Cut-off grade and Au equivalent 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 constrained by a pit shell calculated 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 
U.S. 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 National Instrument 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 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 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 and Nevada.

We seek Safe Harbor.

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