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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Further evaluation of ECU's 2nd quarter

Tonnage milled at our oxide mill in Q2 actually increased 5% to 42,444 tonnes vs 40,291 in Q1. At the oxide mill, the milled gold grade increased about 6% to 1.90 g/t and the milled silver grade increased about 13% to 96 g/t. What killed us is that the oxide mill gold recovery rate dropped from 75% in Q1 to 56% in Q2 and the oxide mill silver recovery rate dropped from 65% in Q1 to 56% in Q2. My guess is that instead of reducing tonnage thruput at the oxide mill, we instead reduced the cynide concentration and this resulted in lower recovery rates.

Due to the lower recovery rates, we lost revenue of about $1.1 million worth of dore bar production. If we had sold everything we milled and had the same recovery rates we had in Q1, we would have had revenues of $7.3 million vs the $4.12 million we had and vs the $5.96 million in Q1.

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