Golden Minerals Announces Hecla Lease Extension and Santa Maria Ni 43‐101 Filing Details
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
4256777.1
GOLDEN MINERALS ANNOUNCES HECLA LEASE EXTENSION AND SANTA MARIA NI
43‐101 FILING DETAILS
Golden, Colorado ‐ /PRNewswire/– March 31, 2017 – Golden Minerals Company (NYSE MKT and TSX:
AUMN) (“Golden Minerals”, “Golden” or “the Company”) announces that Minera Hecla S.A. de C.V.
(“Hecla”) has exercised its right to extend the lease of Golden’s oxide mill in Durango State,
Mexico for an additional 18 months, through December 31, 2018. Additionally, Golden
announces its filing of the National Instrument 43‐101 (“NI 43‐101”) compliant mineral resource
estimate for the Santa Maria silver and gold project, under slightly amended terms from those
announced in February 2017.
Oxide Mill Lease
Golden leased its then ‐vacant oxide mill to Minera Hecla S.A. de C.V., a wholly ‐owned subsidiary
of Hecla Mining Company, in July 2015 for an initial period of 18 months. The lease agreement
contained several lease extension options, and in the third quarter 2016 the lease was extended
through June 2017. The 2016 extension included an agreement under which Hecla would
construct, at its cost, certain tailings expansion facilities to accommodate Hecla’s increased use
of tailings capacity. On March 24, 2017, Golden was notified of Hecla’s exercise of its option to
extend the lease term through December 31, 2018. Tailings expansion work began earlier this
year and is expected to be completed in April 2017. This lease has provided a source of revenue
to the Company during a period in which Golden has not had active mining operations at its own
properties. The lease provided approximately $4.4 million in net cash flow to the Company in
2016, and at Hecla’s anticipated average 400 tonnes per day production rate, Golden anticipates
net cash of approximately $0.4 million per month or $4.8 million annually, in 2017.
Santa Maria Mineral Resource Estimate and PEA Dated March 30, 2017
On March 31, 2017, Golden Minerals intends to file on SEDAR the NI 43‐101 compliant resource
estimate and related Preliminary Economic Assessment (“PEA”) announced in February 2017,
under slightly amended terms from those previously communicated. Due to an adjustment in
the precise location of the claim, the updated property position results in an approximate 25
percent reduction to the previously announced inferred resource estimate, from a reported
160,000 tonnes to approximately 120,000 tonnes. Indicated resources are not affected by the
adjustment and remain the same as previously communicated. The resource adjustment reduces
the net present value of the project under the PEA by less than three percent, from $6.4 million
to $6.3 million. The adjustment has not changed the Company’s belief that there is excellent
potential for expansion of the Santa Maria project, and that such expansion could lead to
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
production beyond the initial three ‐year period considered in the PEA. Work continues at Santa
Maria in support of potential expansion.
Santa Maria Mineral Resource Estimate Dated March 30, 2017
In conjunction with the PEA, the independent firm of Tetra Tech prepared an updated NI 43‐101
compliant mineral resource estimate. Indicated and inferred mineral resource estimates as of March
30, 2017 are shown as follows:
Classification
Cutoff Grade
Tonnes Ag
g/t
Au
g/t
AgEq
g/t
Ag toz Au
toz
AgEq
toz Dilution% Recovered AgEq
g/t (M) (k) (M)
Indicated 175 180,000 304 1.4 404 1.73 8.1 2.31 10%
Inferred 175 120,000 343 1.0 411 1.37 3.9 1.64 19%
Notes:
(1) Mineral resources are reported as diluted Tonnes and grade;
(2) Cutoff grade and Ag equivalent calculated using metal prices of $17.30 and $1,222 per troy ounce of Ag and Au,
respectively, with a ratio of 70.6:1, the three year trailing average as of the end of December 2016;
(3) Cutoff applied to diluted Ag equivalent blocks grades using recoveries of 90% and 80% Ag and Au, respectively;
(4) Reported indicated mineral resources are equivalent to mineralized material under SEC Industry Guide 7, inferred
mineral resource is not a recognized category under SEC Industry Guide 7; and
(5) Columns may not total due to rounding.
PEA Information
The discounted cash flows in the PEA are provided post‐tax and the PEA and updated resource is in
compliance with NI 43‐101 requirements. Tetra Tech is an independent engineering firm that served as
principal author of the PEA prepared on behalf of the Company. Geoff Elson, PG is the independent
Qualified Person from Tetra Tech who reviewed and approved the portions of this press release regarding
mineral resources. Mark Horan, P.Eng of Tetra Tech is the independent Qualified Person who has reviewed
and approved the portions of this press release regarding the results of the PEA. Dr. Deepak Malhotra of
Resource Development Inc. is the independent Qualified Person who has reviewed and approved the
metallurgical recoveries.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves. Standalone economics have not been undertaken for the indicated
resources and as such no reserves have been estimated for the Project. There is no certainty that the
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
economic results described in the PEA will be realized. Mineral resources that are not mineral reserves do
not have demonstrated economic viability.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused
on acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardena
processing plants.
Cautionary Note to U.S. Investors concerning Estimates of Mineral Resources
This press release uses the terms “mineral resources”, “indicated mineral resources” and “inferred
mineral resources” which are defined in, and required to be disclosed by NI 43‐101. We advise U.S.
investors that these terms are not recognized by the SEC. The estimation of measured resources and
indicated resources involves greater uncertainty as to their existence and economic feasibility than the
estimation of proven and probable reserves. Mineral resources are not mineral reserves, and U.S.
investors are cautioned not to assume that mineral resources will be converted into reserves. The
estimation of inferred resources involves far greater uncertainty as to their existence and economic
viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume
that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into
measured or indicated mineral resources.
Cautionary Statement regarding Mineralized Material
“Mineralized material” as used in this press release, although permissible under the SEC’s Industry Guide
7, does not indicate “reserves” by SEC standards. We cannot be certain that any deposits at the Santa
Maria project will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves”.
Investors are cautioned not to assume that all or any part of the disclosed mineralized material estimates
will ever be confirmed or converted into reserves or that mineralized material can be economically or
legally extracted.
Forward‐Looking Statements
This press release contains forward‐looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended,
and applicable Canadian securities legislation, including statements regarding anticipated revenue from
the Hecla lease and expectations regarding the tailings expansion, the Santa Maria PEA results (including
cost estimates, development timing, expected cash flow and life of mine and production expectations),
estimates of mineral resources for the Santa Maria project, and other expectations regarding the Santa
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
Maria project, including operating and exploration plans and expectations. These statements are subject
to risks and uncertainties, including: lower than expected revenue from the oxide plant lease as a result
of delays or problems at the third party’s mine or the oxide plant, the reasonability of the economic
assumptions at the basis of the PEA, changes in interpretations of geological, geostatistical, metallurgical,
mining or processing information and interpretations of the information resulting from future
exploration, analysis or mining and processing experience; new information from drilling programs or
other exploration or analysis; unexpected variations in mineral grades, types and metallurgy; fluctuations
in silver and gold metal prices; failure of mined material or veins mined to meet expectations; increases
in costs and declines in general economic conditions; and changes in political conditions, in tax, royalty,
environmental and other laws in Mexico, and financial market conditions. Golden Minerals assumes no
obligation to update this information. Additional risks relating to Golden Minerals may be found in the
periodic and current reports filed with the SEC by Golden Minerals, including the Company’s Annual
Report on Form 10‐K for the year ended December 31, 2016.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839‐5060
SOURCE: Golden Minerals Company