Apr 15 2015
Golden Minerals Company announces preliminary results of mining activities at the Velardena Properties for the quarter ending March 31, 2015.
During the first quarter 2015, Golden Minerals generated concentrates containing approximately 94,000 payable ounces of silver and 460 payable ounces of gold, totaling 126,000 payable ounces of silver equivalents. Previous guidance indicated first quarter 2015 payable output of between 100,000 and 150,000 ounces of silver equivalents. The Company also generated approximately 270,000 payable pounds of lead and 365,000 payable pounds of zinc in the first quarter 2015.
Cash costs per payable silver ounce, net of by-product credits were approximately $23.50 in the first quarter 2015 and are trending down, in line with previously-published guidance for the quarter of between $20 and $30 per payable silver ounce, net of by-product credits. See "Non-GAAP Financial Measures" below.
Average grades of material processed during the first quarter 2015 were 178 grams per tonne (gpt) silver and 2.7 gpt gold, an improvement over December 2014 average grades of 127 gpt silver and 1.3 gpt gold. Grade improved as the proportion of mined material delivered from stopes increased while the proportion of material delivered from access drives decreased, resulting in decreased dilution. The Company expects continued grade improvement during the second quarter 2015 as the proportion of stoped material increases and the mine continues to focus on dilution control procedures.
The sulfide mill continued to ramp up during the first quarter 2015 and averaged approximately 260 tonnes per day (tpd) in March, near its full capacity of 285 tpd.
Previous full-year guidance remains unchanged, with 2015 output expected at between 0.8 and 1.0 million payable silver equivalent ounces and cash costs per payable silver ounce, net of byproduct credits, of between $12.00 and $15.00. Figures assume prices of $17 per ounce silver and $1,250 per ounce gold.