NI 43-101 Compliant Reports
February 2009
(SRK Consulting) August 2009 (CAM) October 2009 (CAM)
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1.4 million tonnes of 0.3 million tonnes of
indicated resource at indicated resource at an
an average grade of 195 average grade of of 430
grams per tonne and 1.1 million tonnes of grams per tonne and 1.6
0.1 million tonnes of inferred resources with million tonnes of
inferred resource at an an average grade of inferred resource at an
average grade 258 grams 415.5 grams per tonne average grade of 415
per tonne silver silver grams per tonne silver
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8.8 million silver
ounces in the indicated 4.3 million silver
resource and 0.9 ounces in the indicated
million silver ounces Total 14.4 million resource and 21.9
in the inferred contained silver ounces million silver ounces in
resource in the inferred resource the inferred resource
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Based on 141 total drill
Based on 78 drill holes Based on 81 drill holes holes
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Assumed selective Assumed selective
underground mining underground mining
supported by geologic supported by geologic
interpretation of all interpretation of all
Assumed open pit mining holes logged to date holes logged to date
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Cut-off grade: 120 grams
silver for indicated
and inferred mixed and
sulphide sources and 85
grams silver for Cut-off grade: 100 Cut-off grade: 100 grams
indicated and inferred grams silver for silver for indicated and
oxides inferred resources inferred resources
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The new CAM resource estimate assumes selective underground mining with
continuity along strike and down dip supported by geologic interpretation
of all holes logged to date in the mineralized zone, as compared to the
February 2009 SRK estimate which assumed open pit mining of surface oxide
materials.
A 141 diamond drill hole data base was used in the new CAM resource
estimate, which includes 50 additional drill holes that were not included
in the data used by CAM in its August 2009 report, with 10 additional drill
holes from the west extension of the Yaxtché central zone. A further 23
drill holes have now been completed at the El Quevar Yaxtché central and
west zones that are not included in the new CAM resource estimate but will
be included in future resource updates.
To date, the Company has completed a total of 164 diamond drill holes,
totaling about 30,000 meters at the El Quevar project, where the Company
controls mineral and surface rights to approximately 64,000 hectares. The
current focus of the drill program is in the central part of the Yaxtché
zone to confirm structure and continuity, and on infill drilling on the
west extension of the Yaxtché zone to better define the resource. The
Yaxtché zone remains open along strike and at depth. The Yaxtché zone is
one of 13 targets in the El Quevar project area. Drilling is also planned
to test additional selected targets in the project area, including the
Viejo Campo target area. There are currently three drills operating at the
El Quevar project. The Company is proceeding with feasibility work
including permitting, metallurgical work, preliminary mine and plant design
and planning for underground access to the mineralized zone.
Silver mineralization at El Quevar is hosted within a broad, generally
east-west-trending structural zone and occurs as a series of north-dipping
parallel-sheeted vein zones, breccias and mineralized faults situated
within an envelope of pervasively silicified brecciated volcanic rocks and
intrusive breccias. The silver mineralization at the Yaxtché zone is of
epithermal origin. The cross-cutting nature of the mineralization, the
assemblage of sulfide and alteration minerals, and the presence of open
spaces with euhedral minerals, all point to an origin at shallow to
moderate depths (a few hundred meters below surface) from hydrothermal
solutions.
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
The resource estimation was performed by Robert Sandefur, P. E. of
Chlumsky, Armbrust and Meyer, LLC, a Qualified Person as defined by NI
43-101, who is independent of Golden Minerals. The mineral resources in
this estimate were calculated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), Standards on Mineral Resources and
Reserves, Definitions and Guidelines, prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM Council on December 11,
2005.
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 Canada National Instrument 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.
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.
The independent NI 43-101 technical reports are available on the Company's
website.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado,
primarily engaged in the advancement of its exploration projects and in
providing mine management services. The Company has a portfolio of 35
exploration projects, primarily located in Argentina, Peru and Mexico,
including the advanced stage El Quevar project in the Salta Province of
northern Argentina. The Company's experienced management team has proven in
house ability to explore, develop and operate mining projects. Golden
Minerals operates the San Cristobal mine in Bolivia for Sumitomo
Corporation under a Management Services Agreement.
Cautionary Note to U.S. Investors concerning Estimates of Indicated and
Inferred Resources: This press release uses the terms "indicated
resources" and "inferred resources" which are defined in, and required to
be disclosed by, NI 43-101. We advise U.S. investors that these terms are
not recognized by the United States Securities and Exchange Commission (the
"SEC"). The estimation of indicated resources involves greater uncertainty
as to their existence and economic feasibility than the estimation of
proven and probable reserves. U.S. investors are cautioned not to assume
that indicated mineral resources will be converted into reserves. The
estimation of inferred resources involves far greater uncertainty as to
their existence and economic viability than the estimation of other
categories of resources. U.S. investors are cautioned not to assume that
estimates of inferred mineral resources exist, are economically minable, or
will be upgraded into measured or indicated mineral resources. Disclosure
of "contained ounces" in a resource is permitted disclosure under Canadian
regulations, however the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards as in
place tonnage and grade without reference to unit measures. Accordingly,
the information contained in this press release may not be comparable to
similar information made public by U.S. companies that are not subject NI
43-101.
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, results of exploration activities, anticipated further
updates of the El Quevar resource estimate, planned exploration activities,
and planned feasibility work. These statements are subject to risks and
uncertainties, including results of exploration and whether the results
support engineering and other feasibility work on El Quevar, changes in
geological interpretations, whether surface sampling results are indicative
of further exploration results, availability of drills, unexpected
variations in ore grade, types and metallurgy, whether the resources
reported will be converted to reserves and whether the resources reported,
including information regarding contained ounces, will be reduced as
additional exploration and feasibility work is completed, including
feasibility work on processing alternatives and projected recovery rates,
results of feasibility work and uncertainties regarding whether project
feasibility will be supported, financial market conditions, unexpected
increases in costs of materials and supplies used in exploration
activities, fluctuations in silver and other metal prices, technical and
permitting issues, and the ability and success of the Company in raising
adequate capital and implementing its plans. 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 Annual Report on Form 10-K of its predecessor for reporting
purposes, Apex Silver Mines Limited, for the year ended December 31, 2008.
Contact Information: For additional information please visit http://www.goldenminerals.com/ or contact: Golden Minerals Company Jerry W. Danni (303) 839-5060 Sr. Vice President Corporate Affairs