Golden Minerals shares rise on Rodeo drill results

1.10.2020, 21:19 - eeppo

Golden Minerals Company (TSX, NYSE MKT:: AUMN) has received final assays from its resource definition drill program at the Rodeo gold-silver project in Mexico.

Assay results from the final 14 holes of the 35 holes drilled in the 1,400-metre drill program show continued wide zones of high-grade near-surface gold mineralization.

One drill hole returned 30.3 metres grading 3.1 g/t Au, including 11.3 metres grading 6.34 g/t Au. Another hole intersected 55 metres grading 1.77 g/t Au. Average depth of all drill holes was 40 metres.

According to Golden Minerals, the current drill program was designed to provide greater detail on the controls of gold mineralization at Rodeo and to provide additional material for metallurgical and geotechnical test work.

Rodeo is an 1,866-hectare property located in Durango State, approximately 80 kilometres west of the company’s Velardeña properties and processing mills.

Golden Minerals acquired the Rodeo project subject to a royalty interest due to La Cuesta International in the second quarter 2015, prior to which exploration by other miners identified a gold-bearing system exposed at surface.

A year later, the company conducted a 2,080-metre core drilling program on the property, outlining a potential open-pit mining operation with 400,000 tonnes of indicated resources at 3.3 g/t Au for 46,000 ounces of contained gold.

Golden Minerals’ stock jumped 3.3% on the NYSE American, giving the company a market capitalization of $64.7 million.