Golden Minerals (NYSE-A: AUMN, TSX: AUMN), a precious metals miner with over a dozen projects across Argentina, Mexico and United States, has provided an initial mineral resource estimate for its Yoquivo silver-gold project.
Yoquivo is an exploration-stage project located in northwest Chihuahua state, Mexico. In October 2017, Golden Minerals acquired the right to purchase concessions covering the Yoquivo district, a past-producing, underexplored epithermal gold and silver district located 35 km southeast of the Ocampo mining district.
At the moment, the company owns seven concessions that comprise the Yoquivo property totalling 1,975 hectares. These concessions are subject to net smelter return royalties of 2-3% on production, capped at US$2.8 million in the aggregate.
The initial resource estimate, reported in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, outlined a total inferred resource of 937,000 tonnes grading 410 g/t silver and 2.1 g/t gold for 12.3 million oz. of contained silver and 64,000 oz. of contained gold.
“We are very pleased to announce the first mineral resource ever reported for the Yoquivo district. At 570 g/t silver equivalent, this is an exceptionally high-grade initial mineral resource estimate. We believe there is excellent potential for Yoquivo to ultimately develop into a producing property," Warren Rehn, Golden Minerals’ CEO, said in a news release.
The initial resource estimate was based on three phases of drilling that Golden Minerals has completed at Yoquivo to date. In the fourth quarter of 2022, the company began a fourth round of drilling of approximately 3,000 metres.
Commenting possible upgrades to this resource, Rehn mentioned that: "The resource was not initially classified beyond inferred. We believe that a significant portion will be updated to measured and indicated in the next resource update."
"In addition, we note this initial resource estimate covers just a small portion of the strike length of the veins included in the estimate and a fraction of the total number of veins at Yoquivo, at least some of which have potentially economic intervals already drilled but with insufficient drilling to include in the estimate,” he added.
Shares of Golden Minerals shot up 10% on the TSX by 11:50 a.m. Eastern Time. The Colorado-based gold-silver company has a market capitalization of US$40.6 million.