We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Golden Minerals Company | TSX:AUMN | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.01 | -1.45% | 0.68 | 0.67 | 0.82 | 0.69 | 0.66 | 0.67 | 9,745 | 20:59:59 |
Golden Minerals Company (“Golden Minerals”, “Golden” or the “Company”) (NYSE-A: AUMN and TSX: AUMN) announces that a Technical Report (“TR”) has been completed for each of its Rodeo open pit gold-silver mine and its Velardeña Properties, both located in Durango State, Mexico.
Each TR has been completed in accordance with Canadian National Instrument 43-101 - Standards of Disclosure of Mineral Projects (“NI 43-101”). The Resources used for each report were developed by the independent engineering firm of Tetra Tech and comply with the requirements of NI 43-101. Preliminary results of each economic analysis are shown in pre-tax U.S. Dollars. The Company also plans to file a technical report summary pursuant to Subpart 1300 of Regulation S-K for each of the Rodeo mine and the Velardeña Properties in connection with its annual report on Form 10-K.
Rodeo
The Rodeo mine is currently in operation and the Rodeo TR assumes a life of mine (“LOM”) starting point of November 1, 2021. The TR assumes prices of $1,800/ounce (“oz”) gold (“Au”) and $25.00/oz silver (“Ag”). Mineral resources were calculated having an effective date of October 31, 2021 with a cutoff grade of 1.6 grams per tonne (“g/t”) for processing and 1.0 g/t for stockpiling.
Estimated Resources
Classification
Cutoff Au (g/t)
Tonnes
Grade
Au g/t
Au (oz)
Grade
Ag g/t
Ag (oz)
Low-Grade (Stockpile)
Measured
1.0
208,500
1.24
8,350
10.03
67,200
Indicated
1.0
56,400
1.18
2,140
5.18
9,400
Measured + Indicated
1.0
264,900
1.23
10,500
9.00
76,600
Inferred
1.0
1,500
1.20
58
4.09
198
High-Grade
Measured
1.6
310,700
3.11
31,100
13.10
131,000
Indicated
1.6
43,700
3.17
4,500
10.67
15,000
Measured + Indicated
1.6
354,400
3.12
35,600
12.80
146,000
Note: Columns may not total due to rounding
Capital and Operating Costs
Required capital costs for the Rodeo mine consist of an estimated $0.4 million for closure and reclamation. No additional capital is required at the mine. No capital costs are estimated for Plant 2 for the life of the Project. Estimated operating costs are shown below.
Description
LOM Cost ($000s)
Unit Cost ($/t-milled)
Mining
$3,790
$10.79
Processing
$18,278
$52.04
G&A
$1,352
$3.85
Total
$23,421
$66.68
Economic Analysis
The LOM (life of mine) consists of 24 months of operation and assumes 12 months to perform closure and reclamation. The starting point for the LOM is November 1, 2021. The pre-tax net present value (“NPV”) of the project is $22.9 million using a discount rate of 8%. Royalties are calculated at 2% for La Cuesta and 0.5% for the Mexico precious metals royalty.
Description
Unit Cost ($/t-milled)
Total Value ($000s)
NSR1
$141.70
$49,767
Net Revenue
$141.70
$49,767
Operating Costs
Mining
$10.79
($3,790)
Processing
$52.04
($18,278)
G&A
$3.85
($1,352)
Operating Costs
$66.68
($23,421)
Operating Margin
$75.01
$26,346
Capital Costs
Mining
-
$0
Process Plant
$0
Infrastructure
-
$0
Closure
-
($447)
Capital Costs
-
($447)
La Cuesta Royalty
-
($995)
Mexico Precious Metals Royalty
-
($249)
Pre-Tax Cash Flow
-
$24,655
Pre-Tax NPV 8%
-
$22,928
1 Net smelter revenue
Sensitivity Analysis
Sensitivity analyses on metal price and operating costs were performed on the economic model results. Due to the lack of capital cost requirements, no sensitivity analysis was conducted on capital costs. Results of sensitivity analyses show that a reduction in gold price of $100/oz would result in a 10% reduction in NPV, while an increase in operating costs of 10% would result in a 9% decrease in NPV.
Velardeña
The Velardeña Technical report (TR) assumes prices of $1,744/oz gold, $23.70/oz silver, $0.97/pound (“lb”) lead (“Pb”) and $1.15/lb zinc (“Zn”). Mineral resources were calculated having an effective date of February 28, 2022, as diluted to a minimum of 0.7 meters and are reported at a $175 NSR cutoff. A federal precious metal royalty of 0.5% is assumed.
Estimated Resources
Classification
Mineral Type
NSR Cutoff
Tonnes
Grade Ag g/t
Grade Au g/t
Grade Pb%
Grade Zn%
Ag oz
Au oz
Pb lb
Zn lb
Measured
Oxide
175
128,800
268
5.69
1.74
1.53
1,108,000
23,500
4,936,000
4,333,400
Indicated
Oxide
175
280,300
262
5.06
1.73
1.45
2,361,200
45,600
10,681,500
8,936,600
Measured + Indicated
Oxide
175
409,100
264
5.26
1.73
1.47
3,469,200
69,100
15,617,500
13,270,000
Inferred
Oxide
175
351,400
417
4.95
2.55
1.45
4,714,600
56,000
19,729,500
11,248,200
Measured
Sulfide
175
256,200
357
5.52
1.56
1.91
2,942,800
45,500
8,819,300
10,769,700
Indicated
Sulfide
175
603,500
341
4.79
1.46
1.91
6,619,400
92,900
19,475,600
25,408,900
Measured + Indicated
Sulfide
175
859,700
346
5.01
1.49
1.91
9,562,200
138,400
28,294,900
36,178,600
Inferred
Sulfide
175
1,357,700
348
4.76
1.52
1.97
15,179,000
207,800
45,534,200
58,952,900
Measured
All
175
385,000
327
5.58
1.62
1.78
4,050,800
69,000
13,755,300
15,103,100
Indicated
All
175
883,800
316
4.88
1.55
1.76
8,980,600
138,500
30,157,100
34,345,500
Measured + Indicated
All
175
1,268,800
319
5.09
1.57
1.77
13,031,400
207,500
43,912,400
49,448,600
Inferred
All
175
1,709,200
362
4.8
1.73
1.86
19,893,600
263,800
65,263,700
70,201,100
Notes:
(1)
Resources are reported as diluted Tonnes and grade to 0.7 metres fixed width
(2)
Metal prices for NSR cutoff are: US$23.70/troy ounce Ag, US$1,744/troy ounce Au, US$0.97/lb Pb, and US$1.15/lb Zn
(3)
Columns may not total due to rounding
Economic Analysis
Economic model results are summarized below. The model includes Measured, Indicated, and Inferred resources. Reclamation costs are assumed to be canceled by salvage value and are therefore not included. The LOM is 11 years, with a pre-tax NPV of $119 million using a discount rate of 8%.
Item
Total ($000s)
Pb Concentrate
Zn Concentrate
Doré
Gross Payable
$556,905
$311,680
$59,772
$185,453
TCs, RCs and penalties
($35,939)
($19,791)
($14,663)
($1,485)
Freight & Insurance
($14,512)
($5,885)
($5,195)
($3,432)
NSR
$506,454
$286,004
$39,914
$180,536
Operating Costs
Mining Costs - Stoping
($131,261)
Mining Costs - Development
($33,653)
Milling costs
($105,234)
Contingency and Other
($27,015)
Federal Mining Royalty
($2,532)
($299,695)
$/t-milled
($242.23)
Operating Margin
$206,759
Capital Costs
Full LOM
Pre-Production
LOM
Pre-Production Development
($788)
($788)
$0
Process Plant
($17,248)
($14,498)
($2,750)
Contingency and Other
($3,130)
($1,755)
($1,375)
Cash Flow
$185,594
Pre-Tax NPV8%
$118,933
IRR
114%
Payback (years)
1
Sensitivity Analysis
Results of the sensitivity analyses show the project is most sensitive to operating costs and gold price. A 10% increase in operating costs results in a 16% reduction in project NPV. Due to the sensitivity to operating costs, efforts to control or reduce the operating costs are material to the economic success of the project.
Cautionary Note Regarding Inferred Resources
The discounted cash flows shown above are prepared in compliance with NI 43-101. There is no certainty that the economic results described above will be realized. The Company proceeded to production at the Rodeo project without completion of customary feasibility studies demonstrating the economic viability of the Rodeo project, and may elect to do likewise at the Velardeña Properties. A mine production decision that is made without a feasibility study carries additional potential risks which include, but are not limited to, (i) increased uncertainty as to projected initial and sustaining capital costs and operating costs, rates of production and average grades, and (ii) the inclusion of Inferred Mineral Resources, as defined by NI 43-101 that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be converted to a Mineral Reserve, as defined by NI 43-101. Mine design and mining schedules, metallurgical flow sheets and process plant designs may require additional detailed work and economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production.
No mineral reserves have been estimated for either the Rodeo mine or the Velardeña Properties. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The economic model for each of the Rodeo project and the Velardeña Properties is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable the inferred mineral resources to be classified as mineral reserves, and there is no certainty that the preliminary economic model for the Rodeo project, the Velardeña Properties, or both, will be realized.
About Golden Minerals
Golden Minerals is a growing gold and silver producer based in Golden, Colorado. The Company is primarily focused on producing gold and silver from its Rodeo Mine and advancing its Velardeña Properties in Mexico and, through partner funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation, including statements regarding estimated resources and projected economic analyses associated with the Rodeo mine and the Velardeña Properties. These statements are subject to risks and uncertainties, including changes in interpretations of geological, geostatistical, metallurgical, mining or processing information, and interpretations of the information resulting from exploration, analysis or mining and processing experience. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the SEC by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Qualified Person:
The following Qualified Persons from Tetra Tech will co‐author the technical report that will be filed on SEDAR within 45 days of this news release: Dr. Guillermo Dante Ramírez Rodríguez, Mr. Randolph P. Schneider, and Ms. Kira Lyn Johnson. Each of these Qualified Persons has reviewed and approved the information presented in this news release that was derived from the sections of the PEA study for which they were responsible. Each of the named Qualified Persons is independent of Golden Minerals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220322005495/en/
For additional information please visit http://www.goldenminerals.com/ or contact: Golden Minerals Company Karen Winkler, Director of Investor Relations (303) 839-5060
1 Year Golden Minerals Chart |
1 Month Golden Minerals Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions