From Canaccord's Jr Mining WeeklyA tremendous write-up! Still Unrated, however.
Here's an extract:
Website: www.goldenminerals.com
Past 12 months – purchased: $1,180,395
Past 12 months – sold: $198,061
Since Jul. 8/10 – acquisitions or dispositions: Nil
Source: Company reports, StockCharts.com Source: INK Research
Golden Minerals is a Colorado-based junior mining company with an extensive project pipeline and a management group
broadly experienced in exploration, development and mine management. The company emerged from the bankruptcy of
Apex Silver Mines, which built the US$1 billion San Cristobal mine in Bolivia. Golden Minerals is focused on advancing El
Quevar, a high-grade silver mine project in Salta, Argentina, for which an update was recently provided.
• The primary focus on the 63,000-hectare El Quevar project (Figure 10) has been the Yaxtche deposit (Figure 11),
which hosts a global resource of 60.5 million oz Ag at 330 g/t (100 g/t Ag cut-off). The bad news in the recent update is
that the company has deferred completion of the final feasibility study expected Q4/10; this may delay initiation of
production mid-2011. The good news is that the delay is due to commencement of a supplementary US$5 million drill
program launched to test newly-discovered mineralization that may materially impact mineable resources and,
ultimately, the planned throughput rate of 800 t/d. The share price responded very positively, gaining 60% over the
week, although part of the gain may be a catch-up with silver development peers on the back of strong silver pricing.
• 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 West Yaxtche further westward. Hole QVD-217 returned 2
metres grading 970 g/t and 2 metres grading 489 g/t silver but we view it as highly significant that Golden’s geologists
have picked up mineralization east of a northeast-trending fault that previously cut off Central Yaxtche eastward
(Figure 12). 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 West Yaxtche, which, if successful, would extend
Yaxtche by an additional 1.6 kilometre strike length. Yaxtche is only one of 11 targets at El Quevar and, based on our
site visit, we would agree that El Quevar is a district-scale silver discovery.
• Construction of an underground decline (Figure 13) has advanced 97 metres of the planned 225 metre program. The
decline will provide access to confirm the resource model, planned mining methods and ground conditions, while also
providing a bulk sample to conclude metallurgical testing and process design.....