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(This is an abridged release. For the full version click here)
GOLDEN, CO., September 5, 2018 (GLOBE NEWSWIRE) - Golden Minerals Company ("Golden Minerals", "Golden" or "the Company") (NYSE American and TSX: AUMN) has announced positive results from the Preliminary Economic Assessment ("PEA") for its 100%‐controlled El Quevar silver project located in Salta Province, Argentina.
"We are very pleased with the results of this PEA, as the report confirms the potential for a profitable mining operation at El Quevar's Yaxtché deposit, with annual production of around 5 million oz. silver. We also see substantial opportunity to expand the size of the known resource and therefore improve the overall mine life economics. While the PEA considers only the Yaxtché deposit as outlined in the February 2018 resource estimate, the Yaxtché deposit is still open for potential expansion on strike at both ends, and Golden Minerals has identified numerous prospective targets that lie outside the current resource area but within the larger 57,000‐hectare property. We believe we have an excellent opportunity to further enhance the scale and economic significance of the El Quevar project through additional exploration," notes Warren M. Rehn, President and Chief Executive Officer of Golden Minerals Company.
Amec Foster Wheeler E&C Services, Inc., a Wood company ("Wood"), an independent engineering company, has prepared the technical report for Golden Minerals Company on the results of the PEA compiled in accordance with Canadian National Instrument 43‐101 "Standards of Disclosure for Mineral Projects" ("NI 43‐101"). The economic model was assembled by Samuel Engineering, based on capital and operating cost estimates from John E. Thompson LLC and Samuel Engineering. The full technical report will be filed on SEDAR within 45 days of this press release.
After‐tax net present value ("NPV"): (US)$45 million at a 5% discount rate
After‐tax internal rate of return ("IRR"): 17.0%
After‐tax payback period: 3.4 years
Total pre‐production capital cost: $97 million, including $16 million contingency
Pre‐production development time: 2 years
Life of mine ("LOM") 6 years, based on the subset of the Mineral Resource estimate in the PEA mine plan
LOM free cash flow $80 million
LOM payable silver production 29 million oz.
LOM average silver grade 409 grams per tonne ("g/t")
Post start‐up cash cost $9.10 per payable ounce of silver 1
Post start‐up all‐in sustaining costs ("AISC") $9.45 per payable silver oz.
1 1 Cash cost and AISC are defined in "Non‐GAAP Financial Measures" below. Note: PEA parameters assume a silver price of $16.66/oz and a discount rate of 5%.
All figures throughout this release are expressed in US Dollars unless otherwise noted. Key parameters of the PEA are shown in the following sections. 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 economic results described in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.