Golden Minerals Co. on Jan. 26 released initial National Instruments 43-101-compliant resource estimates for the gold-silver deposit at its Rodeo property in Mexico, based on two processing scenarios.
The first option comprises a mill-grade resource that could be processed at the company's existing oxide mill at its Velardena property, located 80 kilometers away.
Under the first scenario, Rodeo is estimated to host indicated resources containing 46,000 ounces of gold and 200,000 ounces of silver within 400,000 tonnes at 3.3 g/t of gold and 11 g/t of silver.
The second option is a heap leach case that could be a stand-alone operation.
Using heap leaching, indicated resources contain 94,000 ounces of gold and 1.4 million ounces of silver within 3.6 million tonnes at 0.8 g/t of gold and 12 g/t of silver, with inferred resources containing 47,000 ounces of gold and 1.3 million ounces of silver within 3.6 million tonnes at 0.4 g/t of gold and 11 g/t of silver.
The first estimate uses a cutoff grade of 0.83 g/t of gold equivalent, while the second uses a cutoff of 0.17 g/t of gold equivalent.
Golden Minerals noted that using the Velardena mill would likely provide a shorter time to production with lower capital costs, while the heap leach operation would depend on leachability and costs.
"The mill grade resource of about 50,000 gold equivalent ounces has the potential to provide us with more than two years of feed for our Velardena oxide plant," Golden Minerals President and CEO Warren Rehn said. "This could be an important replacement to the company's current cash flow from the mill starting in 2019 after the Hecla lease expires, assuming positive economic results from our ongoing studies of the Rodeo deposit."
The company also reported that it intends to change its Toronto Stock Exchange ticker to AUMN from AUM within the next five to 15 business days, to match its NYSE MKT symbol.