Shares of Golden Minerals have been on a tear since releasingadditional drill results from Yaxtche at the El Quevar Project in NW Argentina on Tuesday. The company encountered
additional high-grade results, including 146 m at 317 g/t Ag. More importantly, it reported some very high-grade intercepts in
the East part of the deposit (little exploration there to date). The bad news is that the company has deferred the completion of
the final feasibility study expected Q4/10 and this may delay initiation of production mid-2011. However, the delay is due to the
fact that a supplementary US$5-million drill program has been launched to test newly-discovered mineralization that may
materially impact mineable resources and, ultimately, the planned throughput rate of 800 t/d. The primary focus on the 63,000-
hectare project has been the Yaxtche deposit, which hosts 60.5 Moz Ag at 330 g/t (100 g/t Ag cut-off). Recent drill results
includes hole QVD-211, which cut 146 metres grading 317 g/t Ag, including 56 metres grading 409 g/t and 5 metres grading
1,509 g/t. This hole extends Yaxtche further westward. Hole QVD-217 returned 2 metres grading 970 g/t and 2 metres grading
489 g/t silver but what is likely viewed as highly significant is that Golden’s geologists have picked up mineralization east of
the central fault that previously cut off central Yaxtche. In the Mani area, Golden pulled 5 metres grading 515 g/t and 2 metres
grading 411 g/t in hole QVD-220. Drilling is also ongoing on the west side of post-mineral cover at Yaxtche, which, if
successful, would extend Yaxtche by an additional 1.6-kilometre strike length. Yaxtche is only one of eleven targets at El
Quevar.