The Company anticipates approximately $7.0 million in capital expenditures at Velardena in 2013, with approximately half of that amount spent on mine development including the San Mateo ramp. With the current and advancing development of the San Mateo ramp, the Company is now able to position diamond drills to penetrate the Santa Juana area beneath current mining. Drilling is also ongoing in the Chicago mining unit in an attempt to define oxide tonnes for the oxide plant leaching circuit. In addition, the Company continues work to optimize mine plans and plant performance.
The Company believes that the process test work and underground drill program described above should provide the basis for better planning and evaluation of expansion options later in the year.
Recent drilling at El Quevar (see the Company's
January 25, 2013
press release) supports the Company's view that El Quevar may be an evolving new silver district. Drilling identified silver mineralization approximately one kilometer east and on strike with the Yaxtche resource, and identified a possible extension of the Norte zone, 500 meters east of previous drilling. The Norte zone is parallel in strike to Yaxtche and is five kilometers to the north. In order to advance El Quevar, the Company will solicit a partner to move the project forward with additional drilling in these areas, drilling in other potential areas and evaluations.
The Company will focus on attaining positive cash flow from the Velardena Operations, and expects the Velardena Operations to become gross margin positive in the third quarter 2013, assuming current gold and silver prices.
The Company's cash position is currently sufficient for the Company to carry out its 2013 operating plan, with a projected cash balance at the end of 2013 of approximately
About Golden Minerals
Golden Minerals Company is a
corporation based in
, primarily engaged in silver and gold mining at its Velardena Operations in
and advancement of the evaluation stage El Quevar project in
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 and applicable Velardena Operations Canadian securities legislation, including statements regarding anticipated production from the Velardena Operations in 2013 including the steady ramp-up in such production and expected increases in silver production and decreases In gold production and the reasons therefore; achieving positive gross margin at the Velardena Operations in the third quarter 2013; anticipated timing of completion of the
ramp and anticipated benefits of completing the ramp including increased, more efficient and lower cost ore haulage; evaluation of the
mine as productive; estimates of 2013 capital and mine development costs; planned testing and other efforts to increase gold production; efforts to optimize the mine plan and processing plants; the planned definition of a long-term operating and expansion plan including planned testing and evaluation of the Knelson concentrator, Albion oxidation process and autoclave and results of initial testing; expected lower costs for an Albion process than an autoclave; planned drilling at
; expectation that process test work and underground drill program should provide the basis for better planning and evaluation of expansion options later in the year; the belief that the El Quevar project area may be a new silver district; belief that drilling may have identified extensions of the Yaxtche deposit and the Norte zone; the planned solicitation of a partner to advance the El Quevar project; focus on achieving cash positive operations at the Velardena Operations; belief that the Company has sufficient cash to carry out its 2013 operating plan; and anticipated cash balance at year-end 2013;
These statements are subject to risks and uncertainties, including unexpected events at the Velardena Operations, including further delays or problems in mine development, completion of the
ramp and mine plan and plant optimization; operational changes or problems; variations in ore grade and relative amounts, grades and metallurgical characteristics of oxide and sulfide ores; availability of sufficient quantities of oxide ores; delays or failure in receiving required government approvals or permits; technical, permitting, mining, metallurgical or processing issues; changes in interpretation of geological or metallurgical information at the Velardena Operations and the El Quevar project; failure to achieve anticipated production and head grades, recoveries and concentrate production and quality at the Velardena Operations; delays in or failure to realize anticipated benefits of mine plan and plant optimization efforts; failure to realize anticipated 2013 production and silver production increases; failure to realize anticipated production or increases in production from the anticipated increase in mine development and the completion of the
ramp; higher than anticipated operating and capital costs at the Velardena Operations, and delay in or failure to achieve positive gross operating margin when anticipated or to have sufficient cash to carry out 2013 operating plans; future test results that do not support the use of the Knelson concentrator, Albion oxidation process or autoclave, and that do not provide a basis for future operating and expansion plans; disappointing future results of drilling at the
mining units; loss of and inability to adequately replace skilled mining and management personnel; possible disputes with customers or joint venture partners; failure of undeveloped ore or veins to meet expectations; interpretations and changes in interpretations of geologic information; strikes or other labor problems; increased costs or decreased metals prices; volatility or other changes in the U.S. and Canadian securities markets; availability and cost of materials, supplies and electrical power required for mining operations and exploration; fluctuations in silver, gold, zinc and lead prices, costs and general economic conditions; changes in political conditions, tax, environmental and other laws; and diminution of physical safety of employees in
, and other conditions in the countries in which the Company operates. 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 for the year ended
December 31, 2011
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 Company's Annual Report on Form 10-K for the year ended
For additional information please visit
Golden Minerals Company
Director of Investor Relations(303) 839-5060
SOURCE Golden Minerals Company