Golden Minerals Company (NYSE-A:AUMN, TSX:AUMN, ETR:7GB) reported exceptionally high-grade results for an initial Mineral Resource estimate and Technical Report prepared for its Yoquivo silver-gold project in northwest Chihuahua state, Mexico.
The Golden, Colorado-based gold and silver producer owns seven concessions that comprise the Yoquivo property, totaling 1,974.8 hectares in Mexico. The concessions owned by Golden are subject to net smelter return royalties of 2% to 3% on production, capped at $2.8 million in aggregate.
In a statement, Golden CEO Warren M Rehn said: “We are very pleased to announce the first mineral resource ever reported for the Yoquivo district. At 570 grams per ton (g/t) silver equivalent, this is an exceptionally high-grade initial Mineral Resource estimate.”
READ: Golden Minerals reports continued exploration success at Yoquivo gold-silver project in Mexico
“We believe there is excellent potential for Yoquivo to ultimately develop into a producing property. The resource was not initially classified beyond Inferred. We believe that a significant portion will be updated to Measured & Indicated in the next resource update.”
Rehn noted that the initial resource estimate covers just a small portion of the strike length of the veins included in the estimate and a fraction of the total number of veins at Yoquivo.
“At least some of which have potential economic intervals already drilled but with insufficient drilling to include in the estimate,” added Rehn.
The estimate was prepared by the independent engineering firm Mine Technical Services (MTS), with an effective date of February 24, 2023.
Investors can see the Yoquivo Inferred Mineral Resource statement in table form here.
Metallurgical test work
According to the company, two composite samples for preliminary test work were collected from coarse rejects of Yoquivo core samples. These composites were designed to represent low-grade and medium-grade mineralized material at Yoquivo. The firm’s personnel designed and conducted metallurgical tests at the Velardeña metallurgical lab.
The samples responded very well to flotation. “Gold recoveries were between 84% and 95% and silver recoveries were between 82% and 89%,” said the company.
Recoveries of 85% for gold and silver were recommended for use in assessing reasonable prospects of eventual economic extraction when performing the Mineral Resource estimate, it added.
Golden Minerals is focused on producing gold and silver from its Rodeo Mine, advancing its Velardeña and Yoquivo properties in Mexico and, through partner-funded exploration, its El Quevar silver property in Argentina. It is involved in acquiring mining properties in Mexico, Nevada and Argentina.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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