Golden Minerals Company (NYSEAMERICAN:AUMN) (TSE:AUMN) (FRA:7GB) told investors that it is on track to meet its annual production guidance for 2021 after its 1Q production figures showed stable output from its Mexican operations.
The miner produced 1,559 gold equivalent ounces and sold 1,054 ounces in the first quarter ended March 31, 2021, from its Rodeo mine.
Those figures put Colorado-based Golden Minerals on pace for annual production of 12,000 to 14,000 ounces of gold in 2021, the company said in a statement.
READ: Golden Minerals reveals expansion drilling at its Rodeo Gold Mine in Mexico
Mining began at Rodeo in December 2020 and processing operations started in January at a rate of around 200 tons per day.
The company also said it had finished installing a second regrind mill circuit at the oxide plant where Rodeo’s gold-silver material is processed, designed to allow increased throughput for harder material coming from Rodeo. The new circuit is expected to enable an increase in production to Rodeo’s planned run rate of around 450 tons per day, which Golden plans to reach in May 2021.
“This ramp-up schedule is approximately four to six weeks longer than originally planned due to delays in final installation adjustments and replacement of a VFD (variable frequency drive) controller,” the company told shareholders. “However, the grinding characteristics of the Rodeo mineralized material are more favorable than predicted, which should allow us to increase throughput beyond the 450 tons per day rate initially planned.”
Golden also owns the Velardeña property in Mexico, where it is hoping to restart production by late 2021 or early 2022. In addition, it owns an interest in the El Quevar silver property in Argentina, as well as advancing mining properties in Mexico, Argentina, and Nevada.
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