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Golden Minerals points to Santa Maria additions

Golden Minerals (NYSE American: AUMN) says it has discovered previously unknown mineralised veins as it works to expand the resource and update a preliminary economic assessment for the Santa Maria silver-gold project in Mexico’s Chihuahua state.
Golden Minerals points to Santa Maria additions Golden Minerals points to Santa Maria additions Golden Minerals points to Santa Maria additions Golden Minerals points to Santa Maria additions Golden Minerals points to Santa Maria additions

New vein samples assay up 1.88g/t gold and 648g/t silver

Staff reporter

It said surface samples had returned assays up to 1.88g/t gold and 648g/t silver, and samples 600m east along strike from previous drilling returned up to 0.57g/t gold, 347g/t silver and 1.2% zinc.

The company said it had also discovered the new North vein, 400m to the north-east on the adjacent Cervantes property it acquired in August, with initial sampling results including up to 3.01g/t gold, 196g/t silver, 0.4% lead and 1.08% zinc.

"We believe additional high-grade mineralisation may well be discovered at Santa Maria," president and CEO Warren Rehn said.

Golden Minerals expects to compete an updated PEA this quarter, incorporating results of a drilling programme that started last August.

A 2017 PEA estimated $1 million capex for a 200 tonne per day underground operation, producing 2 million ounces of silver and 6,800 ounces of gold over a 3.2-year mine life.

The project's current resource comprises an indicated 180,000 tonnes at 304g/t silver and 1.4g/t gold plus an inferred 120,000t at 343g/t silver and 1g/t gold.

Golden Minerals has a remaining US$1.2 million to pay under its option to acquire 100% of Santa Maria.

The Colorado-based company had $2.7 million in cash and equivalents and no debt at the end of March.

It reported a positive net operating margin of $1.1 million related to the lease of its oxide plant during the quarter.

It expected to spend about $1.5 million in the year to March 31, 2019, on exploration and property costs primarily at its Mexico assets including Santa Maria.

Shares in the company closed up more than 5% on Friday to 30.02c.

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