Benzinga | Aug 11, 2020 07:11AM EDT

Golden Minerals Reports Drilling Of 23.4m Grading 5.96 g/t Au At Rodeo Gold Project In Durango, Mexico

Golden Minerals Company ("Golden Minerals", "Golden" or the "Company") (TSX:AUMN) today announced it has received positive assay results from the first nine diamond drill holes of its in-fill resource definition drill program at the Rodeo gold-silver project located in Durango State, Mexico.

Rodeo Drill Hole Locations Rodeo Drill Hole Locations



Each of the first nine diamond drill holes intersected wide zones of near-surface gold mineralization. Drill hole depths averaged 50 meters and were drilled at a 60-degree angle to the southeast. Mineralized material consists of highly silicified epithermal veins and breccias hosted in felsic volcanic rocks. Significant results are summarized in the table below, and complete results are available on the Company website. [link]

Drill Hole ID From (m) To (m) Interval (meters) Au (g/t) Ag (g/t)RDO_20_001_M* 0 45 45 1.85 10.7including 7.31 36.8 29.44 2.59 13.4including 19.15 32.4 13.23 4.04 19.9RDO_20_002 0 35 35 2.18 7.3including 9.6 19.5 9.9 4.21 5including 24.61 35 10.39 2.44 17.2RDO_20_003_M* 0 40 40 3.23 10.8including 9.15 22.1 12.95 6.86 15.8including 28.1 39 10.85 2.62 14.9RDO_20_004 0 50 50 1.27 8.2including 12 21.2 9.18 3.33 2.7RDO_20_005_M* 0 40 40 3.78 17.8including 3.9 27.3 23.4 5.96 19.8RDO_20_006 0 30 30 3.06 9.1including 3 18.5 15.5 5.21 10.4including 3 11.1 8.11 7.55 11.1RDO_20_007 0 50 50 0.76 3including 18.7 25.9 7.2 3.36 6.9RDO_20_008 0 40 40 2.95 10.4including 7.9 28.4 20.5 5.13 15.2including 15.4 25 9.6 7.23 23.6RDO_20_009 0 45 45 1.51 5.6including 7.75 28 20.25 2.67 5.5including 14.75 28 13.25 3.32 7.1

Note: Intervals in the table represent drilled length. It is expected that true thickness is approximately 80% of drilled length as drill holes were drilled perpendicular to the gold mineralization that dips at approximately 25 degrees to the northeast.

* Drill holes 001M, 003M and 005M were drilled with PQ drill-core to collect samples for metallurgical test work. Remaining drill holes were drilled with HQ drill-core.

The objectives of the drill program are to provide greater detail on the gold mineralization at Rodeo by infill drilling and to provide additional material for metallurgical and geotechnical test work. Confirmation of continuity of the gold grades in the heart of the deposit is an important step towards the future development of the Rodeo project outlined in the recent Preliminary Economic Assessment published on May 28, 2020 (link).

Warren Rehn, President and Chief Executive Officer of Golden Minerals, commented, "We are pleased with the initial drill results as they confirm the previously reported grades and modeled continuity of the deposit. We are particularly excited about drill hole 002, as this appears to indicate that there is good opportunity to expand the high-grade mineralization to the southwest, further supporting the potential development of the project."

Rodeo Drill Hole Locations is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/99bf9361-6a96-4d1b-b051-a79c5d023e8b

About Rodeo

Rodeo is an 1,866-hectare gold project located in Durango State, Mexico approximately 80 kilometers west of the Company's Velarde?a Properties and processing mills. Golden acquired the Rodeo property subject to a royalty interest due to La Cuesta International in the second quarter 2015, prior to which exploration by other companies identified a gold-bearing system exposed at surface. Golden conducted a 2,080-meter core drilling program in 2016 and outlined a potentially open pit minable, high-grade resource as reported in a NI 43-101 Technical Report dated January 26, 2017:

Classification Cut-off Tonnes (Mt) Au g/t Ag g/t Au (Koz) Ag (Koz)Indicated 0.83 0.4 3.3 11 46 200

Notes:

(1) Cut-off grade and Au equivalent calculated using metal prices of $1,220 and $17 per troy ounce of Au and Ag, recoveries of 77% and 90% Au and Ag;

(2) Mineral resources have been pit-shell constrained using the Lerch Grossman algorithm with cost inputs per tonne of $7.50 mining, $10 trucking and $20 processing. A breakeven cut-off including trucking and processing costs per block was applied to a block model within the optimized shell;

(3) Metal prices do not exceed three-year trailing average as of the end of December 2016, per SEC guidance; and

(4) Reported indicated mineral resources are equivalent to mineralized material under SEC Industry Guide 7.