Golden Minerals reports assays from its Yoquivo project in Mexico

Golden Minerals (TSX: AUMN; NYSE-AM: AUMN) has reported high-grade drill results from its Yoquivo gold-silver project in Mexico’s Chihuahua state, about 32 km from the Pinos Altos mine owned by Agnico Eagle Mines (TSX: AEX; NYSE: AEX).  

Highlights included 6.2 metres grading 17.19 grams gold per tonne and 2403.5 grams silver per tonne starting from 64.8 metres in hole YQ021006, and 2.4 metres grading 3.90 grams gold per tonne and 328 grams silver per tonne starting from 92.7 metres downhole in hole YQ021012.

The “strong” results, says CEO Warren Rehn, “clearly indicate the presence of economic grades on several veins in this multi-vein system.”

“Yoquivo is a district-scale property in an attractive region that was available from one landowner — all  these things made the project attractive to us,” he said in an interview. “Some exploration work has been done in modern times, but not much.” 

Golden Minerals signed an option agreement in 2017 to earn 100% of the project from a private landowner for $750,000 in cash over four years. The project is also subject to a 2% royalty payable on production and capped at $2 million.

Golden Minerals released the first set of drill results from the project in January, with highlights of 1.5 metres grading 4.02 grams gold per tonne and 1473.2 grams silver per tonne starting from 100.2 metres in hole YQ021004, and 2.4 metres grading 1.03 grams gold per tonne and 266.6 silver per tonne starting from 139.1 metres in hole YQ021004.

Rehn said he’s excited about the project for a number of reasons. “It’s an erosional window in post-mineral volcanic cover,” he said. “Young felsic volcanics normally have a cover, with veins not always visible at surface. At Yoquivo, there’s erosional exposure of these lower volcanics.”

The 1,975-hectare project is also situated in the Yoquivo district, which produced 2.64 million oz. silver and 25,680 oz. gold between 1910 and 1925, according to historical data.

Rehn noted that in addition to Agnico’s Pinos Altos mine, there are other mines in the area, including Minera Frisco’s Ocampo mine, 34 km from the Yoquivo project. In addition, Fresnillo (LSE: FRES) expects to start production at its Orisyvo mine, 25 km away, in the second half of this year.

 “We know we’re in a well-endowed part of the Mexico silver belt and there is good geology to host a deposit,” Rehn said.

The latest drill results from Yoquivo rare part of the company’s 21 hole (3,949 metre) drill program testing the Pertenencia, Esperanza and Dolar vein systems. The program was designed to follow up on “high-grade zones” the company intersected in a previous drill program in 2020.

According to Rehn, historic mining on the company’s land package focused on two veins only and according to historic records, the grades were good. Previous owners also left an old mill on site.

 “The old mill on site that the family used is still there,” he said. “We don’t have good records from this historical mining, but mining was conducted on the San Francisco vein, mainly, with some also from Pertenencia … [and] the information we’ve seen indicate grades were high and therefore interesting to us.”

The seven claims that make up the project also cover an “underexplored epithermal precious metals district,” he added.

Elsewhere in Durango, Golden Minerals owns the Rodeo open-pitmine, which started production in January. The company forecasts it will produce between 12,000 and 14,000 oz. gold and between 25,000 and 30,000 oz. silver in 2021.

Its 100%-owned Velardena mine, also in Durango, which the company operated from 2011 and 2015, was suspended due to a combination of low metals prices, dilution and metallurgical challenges. In recent years, the company has evaluated and tested various mining methods and processing alternatives that could potentially enable sustainable profitable operations at the mine.

At presstime, Golden Minerals was trading at58¢ per share within a 52-week trading range of 41¢ and $1.22. The company has 162.80 million common shares outstanding for a market cap of $89.54 million.