Golden Minerals Provides Update For Velardena Mine Restart

GOLDEN, Colo. , Dec. 23, 2014 /CNW/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (AUM.TO) today announces its initial operational performance for the Velardena mine restart in order to update the Company's June 18, 2014 news release. The Company restarted mining operations at Velardena on July 1, 2014 and milling operations on November 3, 2014.

Mining has been conducted on the San Mateo and Terneras vein systems as planned. The Company has mined additional material from the Santa Juana vein system to augment grades as mining and processing rates ramp up. Grades are improving as more slusher stopes are put into production on the San Mateo and Terneras vein systems and the inventory of lower grade material resulting from stope construction is depleted. Based on the grades recovered to date during the restart of mining operations at Velardena, the Company now anticipates grades averaging approximately ten percent lower for both gold and silver than previously anticipated due to additional mining dilution.

Milling rates have averaged 204 tonnes per day in November 2014 and 280 tonnes per day in December 2014. Grades were low in November 2014 as material from stope access drifts and raises was processed to test plant circuits that were refurbished as part of the restart. Average grades in November were 1.3 grams per tonne gold and 109 grams per tonne silver with silver equivalent production estimated to be 25,000 ounces which is exclusive of process inventory in the circuit that required build up. For the first 20 days of December 2014 , the mill averaged 280 tonnes per day at average grades of 1.7 grams per tonne gold and 114 grams per tonne silver.

The Company has commissioned an independent third party to produce a Preliminary Economic Analysis ("PEA") in respect of Velardena. This PEA is anticipated to be complete by the end of February and the Company expects at that time to provide production guidance for 2015.

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