Updated PEA for Velardeña Properties (Durango, Mexico) Shows $87.6 Million After-Tax NPV
- After-tax NPV of $87.6 million
- Assumed prices of gold, silver, lead, and zinc
- None.
The TR has been completed in accordance with Canadian National Instrument 43-101 - Standards of Disclosure of Mineral Projects (“NI 43-101”). The Mineral Resources used for each report were developed by the independent engineering firm of Tetra Tech and comply with the requirements of NI 43-101. Preliminary results of each economic analysis are shown in pre-tax
The TR assumes prices of
Economic Analysis - Highlights
An economic model was prepared for the Velardeña Properties using Measured, Indicated and Inferred Mineral Resources. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. This PEA also considers Inferred Mineral Resources that are too speculative for use in defining Mineral Reserves. Results of the economic analysis are:
- Mine Life: 10.5 years
-
Pre-tax NPV
8% : , IRR: 1,$136.7M 320.2% -
After-tax NPV
8% : , IRR:$87.6M 860.7% - Payback: Less than one year
Estimated Sulfide Resources
Classification |
Mineral Type |
Tonnes |
Grade Ag g/t |
Grade Au g/t |
Grade Pb% |
Grade Zn% |
Ag oz |
Au oz |
Pb lb. |
Zn lb. |
Measured |
Sulfide |
203,200 |
402 |
6.02 |
1.71 |
2.08 |
2,625,900 |
39,300 |
7,680,000 |
9,306,300 |
Indicated |
Sulfide |
462,700 |
402 |
5.32 |
1.68 |
2.08 |
5,983,000 |
79,200 |
17,090,700 |
21,173,100 |
Measured + Indicated |
Sulfide |
665,900 |
402 |
5.54 |
1.69 |
2.08 |
8,608,900 |
118,500 |
24,770,700 |
30,479,400 |
Inferred |
Sulfide |
1,059,900 |
413 |
5.1 |
1.81 |
2.26 |
14,067,200 |
173,700 |
42,294,600 |
52,697,800 |
Notes:
- Resources are reported as diluted tonnes and grade to 0.7 m fixed width.
-
Metal prices for NSR cutoff are:
/oz-Ag,$22.71 /oz-Au,$1,826 /lb Pb and$1.02 /lb Zn.$1.31 - Columns may not total due to rounding.
- Sulfide estimated resources taken from Table 1-1: Velardeña Project Mineral Resources.
Economic Analysis - Details
Economic model results are summarized below. The model includes Measured, Indicated and Inferred Mineral Resources. Closure and reclamation costs of
Production Summary | Total - LOM | Financial Summary | Total ($M) | |
Material Mined and Processed (kt) | 1,216 |
Gross Payable |
|
|
Grade Au (g/t) | 5.44 |
TCs, RCs and Freight |
|
|
Grade Ag (g/t) | 359 |
Penalties |
|
|
Grade Pb (%) | 2.21 |
NSR |
|
|
Grade Zn (%) | 1.88 |
Operating Costs | ||
Lead Concentrate | Mining |
|
||
Au Recovered (koz) | 15.85 |
Processing |
|
|
Ag Recovered (koz) | 10,651 |
G&A |
|
|
Pb Recovered (klbs) | 37,351 |
Contingency |
|
|
Au Grade in Concentrate (g/t) | 9.3 |
Total Operating Cost |
|
|
Ag Grade in Concentrate (g/t) | 6,250 |
Federal Mining Royalty |
|
|
Pb Grade in Concentrate (%) | 31.96 |
EBITDA |
|
|
Zinc Concentrate | Capital Costs | |||
Zn Recovered (klbs) | 26,724 |
Mine Equipment |
|
|
Ag Recovered (koz) | 426 |
Processing Plant |
|
|
Zn Grade in Concentrate (%) | 50.26 |
Sustaining Capital |
|
|
Ag Grade in Concentrate (g/t) | 548.88 |
Surface Infrastructure and Other |
|
|
Pyrite Concentrate | Contingency |
|
||
Au Recovered (koz) | 171.81 |
Total Capital Costs |
|
|
Ag Recovered (koz) | 1,886 |
Change in Working Capital |
|
|
Au Grade in Concentrate (g/t) | 19.66 |
Pre-tax Cash Flow |
|
|
Ag Grade in Concentrate (g/t) | 216 |
NPV8% |
|
|
IRR |
|
|||
Smelter Payable | Payback (years) | <1 year | ||
Payable Au (koz) | 143.91 |
Mexico SMT |
|
|
Payable Ag (koz) | 12,020 |
Income Tax |
|
|
Payable Pb (klbs) | 35,484 |
After-tax Cash Flow |
|
|
Payable Zn (klbs) | 22,715 |
NPV8% |
|
|
IRR |
|
|||
NSR/tonne |
|
Operating Cost Estimates
Item | Total | Unit Cost |
( |
($/t-milled) | |
Mining Costs |
|
|
Processing Costs |
|
|
G&A and Overhead |
|
|
Contingency |
|
|
Total1 |
|
|
Mexico Precious Metals Royalty |
|
|
1 Columns may not total due to rounding. |
Run of Mine Production Summary
Conceptual stope shapes for the PEA production plan utilize the weighted average vein width of 0.7 meters. An additional dilution factor of
Description | Value | Units |
ROM Mined | 1,216 |
kt |
ROM Grades: | ||
Grade Au | 5.44 |
g/t |
Grade Ag | 359.31 |
g/t |
Grade Pb | 2.21 |
% |
Grade Zn | 1.88 |
% |
Contained Metal: | ||
Gold (Au) | 213 |
koz |
Silver (Ag) | 14,046 |
koz |
Lead (Pb) | 59,278 |
klb |
Zinc (Zn) | 50,308 |
klb |
Process Summary
Description | Units | Total Conc. | Pb Conc. | Zn Conc. | Fe Conc. |
Products | 348,940 |
53,007 |
24,118 |
271,816 |
|
Recoveries: | |||||
Au | % | 88.2 |
7.5 |
- |
80.8 |
Ag | % | 92.3 |
75.8 |
3.0 |
13.4 |
Pb | % | 63.0 |
63.0 |
- |
- |
Zn | % | 53.1 |
- |
53.1 |
- |
Recovered Metals: | |||||
Gold (Au) | koz | 187.7 |
15.8 |
- |
171.8 |
Silver (Ag) | koz | 12,963 |
10,651 |
426 |
1,886 |
Lead (Pb) | klb | 37,351 |
37,351 |
- |
- |
Zinc (Zn) | klb | 26,724 |
- |
26,724 |
- |
Sensitivity Analysis
Results of the sensitivity analyses show the project is most sensitive to precious metal prices, precious metal recoveries and operating costs. A
Liquidity Update
At July 31, 2023, the Company had current assets of approximately
Cautionary Note Regarding Inferred Resources
The discounted cash flows shown above are prepared in compliance with NI 43-101. There is no certainty that the economic results described above will be realized. If the Company is able to obtain sufficient capital and restart production at the Velardeña Properties, the Company would do so without completing customary feasibility studies demonstrating the economic viability of the project. A mine production decision that is made without a feasibility study carries additional potential risks which include, but are not limited to, (i) increased uncertainty as to projected initial and sustaining capital costs and operating costs, rates of production and average grades, and (ii) the inclusion of Inferred Mineral Resources, as defined by NI 43-101 that are considered too geologically speculative to have the economic considerations applied to them that would enable them to be converted to a Mineral Reserve, as defined by NI 43-101. Mine design and mining schedules, metallurgical flow sheets and process plant designs may require additional detailed work and economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production.
No Mineral Reserves have been estimated for the Velardeña Properties. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The economic model for the Velardeña Properties is preliminary in nature and includes inferred Mineral Resources that are too geologically speculative to have economic considerations applied to them that would enable the Inferred Mineral Resources to be classified as Mineral Reserves, and there is no certainty that the preliminary economic model for the Velardeña Properties will be realized.
About Golden Minerals
Golden Minerals is a gold and silver producer based in
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 estimated resources, estimated mine life, projected economic analyses associated with the Velardeña Properties; cash proceeds from the potential sale of the
Qualified Person
The following Qualified Persons from Tetra Tech will co‐author the technical report that will be filed on SEDAR within 45 days of this news release: Dr. Guillermo Dante Ramírez Rodríguez, Mr. Randolph P. Schneider and Ms. Kira Lyn Johnson. Each of these Qualified Persons has reviewed and approved the information presented in this news release that was derived from the sections of the PEA study for which they were responsible. Each of the named Qualified Persons is independent of Golden Minerals.
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SOURCE: Golden Minerals Company
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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