Name of the Project
Velardeña silver/gold/lead/zinc project.

Location
The project is located in Durango state, in Mexico.

Project Owner/s
Golden Minerals.

Project Description
A preliminary economic assessment on the project has marked the Velardeña project as an attractive scenario for a restart.

The Velardeña mine plan includes 1.14-million tonnes of sulphide material, with a mine life of about ten years at 310 t/d.

The project contains total measured and indicated resources of 1.35-million tonnes grading 317 g/t silver, 4.92 g/t gold, 1.54% lead and 1.78% zinc. Inferred resources are estimated at 1.77-million tonnes grading 354 g/t silver, 4.73 g/t gold, 1.72% lead and 1.86% zinc.

Production is estimated at 12.33-million oz of silver with a grade of 337 g/t, 188 250 oz of gold with a grade of 5.15 g/t gold, 33.10-million pounds of lead with a grade of 1.32% lead and 40.89-million pounds of zinc with a grade of 1.63% zinc. The project will include the bio-oxidation treatment of gold concentrates.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of $85.9-million and an internal rate of return of 138.6%, with a payback of one year.

Capital Expenditure
Total preproduction capital costs are estimated at $10.27-million, including a 10% contingency.

Planned Start/End Date
Preproduction development is estimated at one year.

Latest Developments
In the coming months, Golden Minerals plans to continue optimising the mine plan and pro­cessing details. This is in preparation for future test-mining and processing in advance of estab­lishing a definite schedule for restarting com­mercial production at the Velardeña mines and the installation of the bio-oxidation circuit.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Golden Minerals, tel +130 3839 5060 or email information@goldenminerals.com.