Golden Minerals Reports Second Quarter 2015 Velardena Performance

PR Newswire

GOLDEN, Colo., July 16, 2015

GOLDEN, Colo., July 16, 2015 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announces results of mining activities for the second quarter 2015 of approximately 125,000 ounces of payable silver equivalent1, in line with the first quarter 2015.

Mill throughput was negatively impacted during the second quarter by lower than planned amounts of material removed from the mine. This resulted primarily from the Company's delay in hiring new and replacement miners during union negotiations for a one-year extension of its union contract, which were completed in May 2015. The mill has processed up to 370 tonnes per day (tpd), is operating well and averaged 225 tpd during the quarter. The mill did not operate for 19 days during the quarter due to insufficient material delivered from the mine. The mill averaged 280 tpd on days that the mill operated during the quarter.

Cash costs per payable silver ounce, net of by-product credits, were approximately $26.00 in the second quarter and are expected to decline as the mine ramps up in the third quarter. Average grades of material processed during the second quarter were 170 grams per tonne (gpt) silver and 2.78 gpt gold compared to 178 gpt silver and 2.66 gpt gold in the first quarter 2015.

Golden Minerals has updated its guidance for the remainder of 2015. The Company has lowered forecasted metals prices to $16 per ounce silver and $1,125 per ounce gold from $17 and $1,250, respectively, and now anticipates approximately 400,000 payable silver equivalent ounces during the remainder of 2015, primarily due to the absence of pyrite concentrate sales due to lower gold prices and to lower silver and gold grades than anticipated. The Company now anticipates cash costs per payable ounce of silver, net of byproduct credits, of between $15 and $20 per ounce for the remainder of 2015, with the increase primarily due to reduced metals sales.

1 Payable silver equivalent ounces include silver and gold but exclude lead and zinc, with silver equivalents calculated at 70:1 silver to gold.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on mining its Velardena Properties and the exploration of properties in Argentina and Mexico.