Golden Minerals plans to restart operations at Velardeña, subject to the receipt of sufficient capital
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(Kitco News) - Golden Minerals (NYSE: AUMN) (TSX: AUMN) announced today that it plans to restart silver-gold mining operations at its Velardeña project located in Durango State, Mexico, subject to the receipt of sufficient capital.
The company said that its board of directors has approved plans to restart mining operations at Velardeña, adding that the decision to begin operations again was primarily based on “vastly improved” sales terms now available to Golden Minerals for the gold-rich pyrite concentrate that is produced from flotation processing of Velardeña mineralized material, “which permit us to restart operations without the significant expense of the previously planned bio-oxidation facility.”
The company anticipates that it can start mining operations with “minimal” initial capital of approximately $0.5 million.
“Our internally developed mine plan projects the production of approximately 0.4 million silver equivalent ounces during 2023, with the potential to ramp up to approximately 1.6 million silver equivalent ounces per year thereafter. We have contracted for completion of an independent technical report, which we expect will support our internal projections. We intend to begin preparations to start mining immediately,” the company said.
With all required permits are already in place, the mill is expected to reach a steady-state processing rate of approximately 325 tpd by the end of the year.
"The maximum cash outflows of about $2.3 million, inclusive of the initial $0.5 million, are predicted to be paid back within the first nine months of operations," the company said.
Golden Minerals is a gold and silver producer based in Golden, Colorado. The company is primarily focused on producing gold and silver from its Rodeo mine, advancing its Velardeña and Yoquivo properties in Mexico and, through partner-funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.