GOLDEN, CO, May 10, 2010 (Marketwire) -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) today announced that a drilling program is scheduled to begin this week at the San Pedro de Hercules and El Cristo targets at the Company's Zacatecas project in Mexico.
The Zacatecas project is located in a prolific silver district with potential for large precious metals systems with base metal credits. Golden Minerals controls approximately 14,900 hectares, approximately 70% of the total district. The Company currently has identified five targets within the Zacatecas project.
Results from the initial drill program at the Panuco target located in the northern part of the Zacatecas project were previously reported. Drill results indicated significant intercepts of high grade silver mineralization with gold values in epithermal veins. Drill hole PA-07 returned silver values from trace to 2,870 grams per tonne and gold values from trace to 1.44 grams per tonne, including 1,579 grams per tonne silver and 0.16 grams per tonne of gold contained in a 1.71 meter intercept. Hole PA-24, the last hole drilled during the initial test, contained silver values from trace to 1,220 grams per tonne and gold values from trace to 2.47 grams per tonne, with a 3.14 meter intercept of 386 grams per tonne of silver and 0.27 grams per tonne of gold.
Drilling on two additional targets at the Zacatecas project, San Pedro de Hercules and El Cristo, is now planned to start this week. Drilling will begin at the San Pedro de Hercules target, followed by the El Cristo target.
San Pedro de Hercules Target
The San Pedro de Hercules target is located in the southwestern part of the Zacatecas project, along the western extension of the Mala Noche Vein system and adjacent to Capstone Mining's Cozamin Mine. Sampling of surface outcrops and trenches has returned trace to 850 grams per tonne silver and trace to 0.37 grams per tonne gold, associated with values in zinc, lead and copper. Samples from veins exposed in underground workings have returned up to 800 grams per tonne silver.
The target area measures approximately 1,000 meters by 700 meters and consists of three east-west trending veins exhibiting widths up to 1.5 meters and a zone of stockwork-style mineralization hosted by Cretaceous volcanic rocks. There is evidence of minor production that appears to date back more than 100 years.
A first-stage drilling program consisting of 15 holes totaling approximately 3,250 meters is planned for the San Pedro de Hercules target.
El Cristo Target
The El Cristo target is located in the central part of the Zacatecas project. Surface sampling from outcrops and trenches has returned trace to 1.1 grams per tonne of gold and 9 to 599 grams per tonne of silver.
The northwest trending braided vein system at El Cristo is more than two kilometers in length and from 200 to 300 meters wide. The vein system is the direct northwesterly extension of the famed Vetagrande vein zone, which has produced over 700 million ounces of silver. Five veins hosted by Cretaceous volcanic rocks ranging in width from 0.15 meters to 5 meters contain silver, zinc and lead with lesser values in copper and gold. There has been no modern exploration conducted on the El Cristo target.
An initial drill test consisting of ten holes totaling approximately 2,000 meters is planned for the El Cristo target.
Review by Qualified Person, Quality Control and Reports
Results of the Company's drilling program have been reviewed, verified, and compiled under the direction of the Company's Senior Vice President of Exploration, Robert Blakestad, M.Sc., P.Geo, L.P.G., a Qualified Person for the purpose of NI 43-101. Mr. Blakestad has over 35 years of mineral exploration experience, is a Professional Geoscientist registered in Nova Scotia and a Licensed Professional Geologist in the state of Washington.
Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging from 80% to 95% of the reported down-hole lengths.
To ensure reliable sample results, Golden Minerals uses a quality assurance/quality control program that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards in each batch of samples. Core is photographed and sawn in half with one half retained in a secured facility for verification purposes. Sample preparation (crushing and pulverizing) is performed at an independent ISO 9001:2001 certified laboratory. Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories. Pulp splits of mineralized intervals are re-assayed at certified independent referee laboratories.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its pipeline of exploration projects in Latin America and in managing the San Cristobal mine in Bolivia. The Company has a portfolio of 30 exploration projects, including the feasibility stage El Quevar project in the Salta Province of northwestern Argentina, and advanced stage drilling projects in Mexico and Peru. The Company's experienced management team has proven in house ability to explore, develop and operate mining projects.
Forward-Looking Statements (TBD)
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the timing and extent of planned drill programs at Zacatecas district targets, the significance of drill intercepts and the potential in the Company's properties in the Zacatecas, district for large precious metals systems with base metal credits. These statements are subject to risks and uncertainties, including delays in planned exploration; reduction in planned exploration programs due to initial results, equipment or other problems or changes in exploration priorities; results of future exploration; whether additional exploration will be conducted at the Panuco target; whether exploration on the Company's Zacatecas properties will confirm any large precious metals systems with base metal credits or otherwise have positive results; geological interpretation of exploration results at Panuco and surface samples at the El Cristo and San Pedro de Hercules targets and changes in geological interpretations, including changes resulting from further exploration work; whether current exploration results at Panuco and surface sampling results at the El Cristo and San Pedro de Hercules targets will prove be indicative of future exploration results, uncertainties regarding whether the results of additional exploration at these or any other Company projects will be positive; fluctuations in silver and other metal prices; technical and permitting issues; title problems; and the ability and success of the Company to continue raising adequate capital and implementing its plans. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K for the year ended December 31, 2009.
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