Golden Minerals Company (NYSE-A:AUMN, TSX:AUMN, ETR:7GB) has published NI 43-101 reports for its producing Rodeo open-pit gold-silver mine and its Velardena mine project, pegging the latter as having an 11-year mine life and a pre-tax net present value (NPV) of US$119 million.
Both projects are in Mexico. Rodeo is already producing, while Velardeña is being advanced for a potential re-start of output in 2022.
The Velardena technical report assumed prices of US$1,744 per ounce (oz) gold, US$23.70/oz silver, US$0.97 per pound of lead and US$1.15 per pound of zinc and was based on resources with an effective date of February 28 this year.
Cash flow over the life of mine came in at US$185.6 million, while the internal rate of return (IRR) was put at 114%.
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Meanwhile, at Rodeo, also in Durango state, the life-of-mine (LOM) was put at two years (24 months of operation starting from November 1, 2021) and assumed 12 months to perform closure and reclamation at the property. The pre-tax net present value (NPV) of Rodeo was pegged at US$22.9 million.
Required capital costs for the Rodeo mine consist of an estimated US$0.4 million for closure and reclamation. No additional capital is required at the mine.
The report assumed prices at Rodeo of US$1,800 per ounce (oz) gold and US$25.00/oz silver. Mineral resources were calculated having an effective date of October 31, 2021.
Golden Minerals is 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, and acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.
Contact the author at giles@proactiveinvestors.com