GOLDEN, CO--(Marketwire - August 10, 2009) - Golden Minerals Company ("Golden Minerals" or the "Company") (TSX: AUM) (PINKSHEETS: GDMN) today announced results for the second quarter 2009.


Golden Minerals Company is primarily engaged in the advancement of its exploration projects and in providing mine management services for the San Cristobal silver and zinc mine in Bolivia for Sumitomo Corporation. The Company has a large portfolio of exploration projects, primarily located in Argentina, Peru and Mexico and is focusing on its advanced stage El Quevar Project in northern Argentina. The Company's common stock commenced trading on the Toronto Stock Exchange on July 16, 2009 under the ticker symbol "AUM."

For the second quarter 2009, the Company recorded a total net loss of $6.5 million, which included among other items, $1.8 million in revenue net of associated costs for management services, a loss of $1.3 million on the mark down of its auction rate security (ARS) investments, $3.0 million of administrative expense, $3.0 million of exploration expense, and $0.6 million of reorganization cost.

Golden Minerals is the successor to Apex Silver Mines Limited ("ASML") for purposes of reporting under the U.S. federal securities laws, upon emergence from Chapter 11 bankruptcy on March 24, 2009. All of the Chapter 11 claims have now been substantially resolved. ASML is in liquidation in the Cayman Islands that will include cancellation of ASML ordinary shares.

Exploration Update

During the second quarter, the Company continued its drilling program on the El Quevar silver project in northwestern Argentina. The Company recently completed a 63 hole core drilling program totaling about 8,000 meters. The drill program focused on providing infill drill intercepts in the central area and defining strike extensions of the high-grade Yaxtche mineralized zone to support an updated resource estimation and provide information for preliminary engineering studies. These holes were primarily designed to provide additional intercepts within the original drill pattern, which was spaced about 50 meters apart. This new drilling will provide intercepts spaced 25 to 30 meters apart and provide more information about the continuity and grade of the known mineralization. This drill program also tested extensions to the east and west of the main mineralized zone. Results confirm that the zone extends at least 450 meters further west and 350 meters further east of the previously defined 750 meter long central zone, and is still open in both directions.

Of the last 37 holes drilled in the central part of the Yaxtche zone at El Quevar as of July 29, 2009, 27 hit significant silver mineralization of better than 100 grams per tonne, with assays pending on six holes. Eight of the last 37 holes in the central part of the zone intersected greater than 1.0 kilogram per tonne of silver, with grades up to 8.6 kilograms per tonne, including a 22 meter intercept of 932 grams per tonne of silver. A total of 26,000 meters in 141 holes have been drilled at El Quevar to date.

The field work at El Quevar has also identified several more target areas believed to have potential for the discovery of additional silver mineralization. The Company plans to drill test the areas believed to be more promising in the coming months. The Company plans to update the mineral resource at El Quevar in the third quarter of 2009 and has initiated engineering studies in support of a preliminary economic assessment for the project.

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 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 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.

In addition to El Quevar, the Company continues to advance field evaluations of certain other interesting prospects in preparation for possible drill testing later in the year. Among these prospects are the high-grade vein targets in the Zacatecas district of central Mexico, where the Company has identified four areas, through drilling and surface sampling, that contain significant silver and base metal values in quartz veins and as disseminations in sedimentary rocks. In Peru, the Company has developed another potential high-grade vein target at the Palca project in southern Peru, where at least four veins exhibit silver values greater than 100 grams per tonne with associated lead, zinc and gold values, identified through surface sampling and mapping.

Liquidity and Capital Resources

At June 30, 2009 Golden Minerals' aggregate cash and short and long-term investments totaled $20.5 million, which included $15.7 million in cash and cash equivalents and ARS investments recorded at a fair value of $4.6 million. During the second quarter, the Company received $600,000 on the sale of an office building in La Paz, Bolivia. The Company expects to receive the final $50,000 of the sale price in the third quarter. In July, the Company sold for approximately $2.5 million ARS investments with a face value of $41.5 million and a carrying value of approximately $3.8 million at March 31, 2009. The Company continues to hold ARS with a face value of $10.5 million and net book value of $2.1 million as of June 30, 2009, which earn interest at a rate of 2.5% over LIBOR. The Company is also negotiating with potential buyers the sale of exploration properties in Bolivia and Mexico, that are outside of Golden Minerals' specific area of interest, that have carrying values of $2.5 million and $0.6 million, respectively.

The Company anticipates that cash on hand, together with interest and other cash receipts and management services revenues will provide enough cash to continue the exploration program and to pay general and administrative expenses for at least the next twelve months. In the longer term, continuing operations are dependent upon the Company's ability to raise sufficient capital and to generate future profitable operations. For example, the Company anticipates that an additional $10 to $15 million would be required in 2010 to complete a feasibility study and begin development work at the El Quevar property in Argentina.

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 El Quevar and, planned commencement of a preliminary economic assessment for El Quevar, planned exploration on other properties, the expected dimensions of the zone of mineralization at the El Quevar project, the expectation that cash on hand and anticipated revenues and cash receipts will be sufficient to fund general and administrative costs and exploration expenses for the next 12 months; anticipated spending on reorganization, general and administrative and exploration costs and expected management services fees and other cash receipts and, the expectation that we will not be required to make further cash payments to the former holders of ASML's subordinated notes. These statements are subject to risks and uncertainties, including financial market conditions, whether operations will continue at the San Cristobal mine and under the Management Services Agreement, increases in costs of materials and supplies used in mining and exploration activities, future results of exploration and the preliminary economic assessment and other work at El Quevar, variations in ore grade and types, fluctuations in silver and zinc prices, technical and permitting issues, and the ability and success of the Company in raising adequate capital and implementing its plans to pursue growth opportunities. 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 or contact: Golden Minerals Company Jerry W. Danni (303) 839-5060 Sr. Vice President Corporate Affairs