Golden Minerals Company · TSX:AUMN
Golden Minerals — Investor Presentation (May 2018)
26 slides from Golden Minerals's investor presentation, May 16, 2018
Slide 1: Corporate Presentation
Corporate Presentation May 16, 2018
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Note Regarding Forward Looking Statements: Statements made regarding matters which are not historical facts, are “forward looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. These in
Slide 3: Business Strategy
Business Strategy • Establish Golden Minerals as a mid‐tier precious metals mining company, focused primarily in Mexico • Advance the El Quevar Project (Salta, Argentina) • Explore properties selected for high grades, low development costs and near‐term production • Priority to properties within hau
Slide 4: Why Mexico?
Why Mexico? • World’s largest silver producer • Government supportive of mining industry; fast permitting timelines • Mexican peso remains weak relative to dollar • Strong future operational Pesos per Ag oz advantage as substantial portion of mining and processing costs will be in pesos 3
Slide 5: What’s New?
What’s New? • El Quevar – Announced updated resource estimate, Feb. 2018 • Intend to proceed with PEA • Advance as much as possible in 2018, within exploration budget limits • Santa Maria – Finished drill program begun in Q317 with goal of expanding the resource • 4,850 m, 23 holes • Updating resour
Slide 6: Precious Metals Focus in Mexico and Argentina
Precious Metals Focus in Mexico and Argentina 5
Slide 7: El Quevar - District Potential
El Quevar - District Potential • Silver project in Salta Province, 57,000 ha • Yaxtché deposit – 2km strike length deposit within much larger property • Q2 2012 – released RPM NI 43‐101 resource estimate on Yaxtché* • Q1 2018 – released Wood Group NI 43‐101 resource estimate identifying smaller but
Slide 8: El Quevar – Significant Exploration to Date
El Quevar – Significant Exploration to Date • Significant exploration conducted: • Over 1,200 m underground exploration • Over 400 drill holes, approx 100,000 m • Numerous drill holes outside of resource with strong Ag values • 2012 NI 43‐101 resource for Yaxtché – envisioned open pit on east side,
Slide 9: El Quevar – 2018 Resource Estimate
El Quevar – 2018 Resource Estimate • Re‐model project achieved goal of 3M tons of > 400 g/t Ag • Based on new indicator model using tighter controls and modeling approach designed to delineate the higher‐grade mineralization • Used 250 g/t Ag cutoff • New estimate retains 80% of the Ag oz at 3x the
Slide 10: El Quevar – 2018 NI 43-101 Resource
El Quevar – 2018 NI 43-101 Resource Indicated Sulphide Resource Sensitivity Table Cut-off Tonnes Ag Grade Contained Ag Metal Ag (g/t) (Mt) (g/t) (M oz) 300 2.46 501 39.7 Inferred Sulphide Resource Sensitivity Table 250 2.63 487 41.1 Contained Ag Cut-off Tonnes Ag Grade 200 2.66 484 41.4 Metal Ag (g/
Slide 11: El Quevar - Exploration
El Quevar - Exploration 1 km Argentina/Yaxtché E target Untested IP target in basin From new inversion of existing IP data. Results of new study have identified new targets. 10
Slide 12: Principal Projects - Mexico
Principal Projects - Mexico SANTA MARIA VELARDEÑA • PEA and updated NI 43‐101 • Oxide plant leased to Hecla resource reported March 2017 ($4.5M net oper. margin 2017) • Acquired additional 77 ha claims • Aug. 2017: Hecla bought option on strike and downdip, Q317 to secure use through 2020 • 4850 m d
Slide 13: Santa Maria
Santa Maria • Ag/Au mine near Parral District in southern Chihuahua State • Under option agreement; $1.4M remaining to acquire 100% • PEA and updated NI 43‐101 released March 2017 • Permits in hand to operate underground mine and to conduct step‐out drilling on strike • Acquired 3 additional claims
Slide 14: Santa Maria – Mar. 2017 PEA Highlights
Santa Maria – Mar. 2017 PEA Highlights 1 • $6.3M post‐tax NPV and 84% pre‐tax IRR 1 • Low estimated capital costs: $1.0 initial + $0.2M sustaining = $1.2 million • 200 tpd underground operation using custom milling • Payback in month 16 • Life of mine (LOM) 3.2 years • LOM free cash flow $8.2 millio
Slide 15: Santa Maria – Expanded Mineral Resource Estimate
Santa Maria – Expanded Mineral Resource Estimate The 2017 resource estimate incorporated results of 24 additional drill holes and 460 channel samples from drifts and the trial mining face, resulting in a more than doubling of the indicated resource since the previous April 2015 estimate. Cutoff Grad
Slide 16: Santa Maria – 2017-18 Drilling Completed
Santa Maria – 2017-18 Drilling Completed • New drill program begun late August 2017 with goal of at least doubling the 2017 resource estimate • Program targets extension of the vein deposit described in March 2017 PEA and NI 43‐101 • 4,849m in 22 holes completed (Q218) • Results show continuation of
Slide 17: Santa Maria – 2017-18 Drill Program
Santa Maria – 2017-18 Drill Program Geologic Map Showing the Explored Area and the East Extension to be Tested Additional possible east extension Current resource area East extension of the Santa Maria Vein recently drilled 16
Slide 18: Rodeo Gold Project
Rodeo Gold Project • 1,900 ha gold project located 80 km west of Velardeña; acquired in 2015 • 2,080 m core drilling program conducted in 2016 • NI 43‐101 resource announced Jan. 2017 Quartz vein outcrop • Preliminary metallurgical studies show 86% and 73% mill recoveries for Au and Ag • Potential o
Slide 19: Rodeo NI 43-101
Rodeo NI 43-101 Mineral Resource Estimate (Mill Processing Pit Constrained) Cutoff Tonnes Au oz Waste: Classification Au g/t Ag g/t Ag oz (M) AuEq g/t (M) (‘000) Resource Indicated 0.83 0.4 3.3 11 46 0.2 0.91 Inferred ‐ ‐ ‐ ‐ ‐ ‐ ‐ Notes: (1) Cutoff grade and AuEq calculated using metal prices of $1
Slide 20: Celaya – Silver & Gold Project
Celaya – Silver & Gold Project • 6,200 ha Ag/Au property located 10 km east of Plata Latina’s Naranjillo Ag/Au discovery and 45 km southeast of the historic Guanajuato District in Guanajuato State • High grade epithermal gold and silver mineralization discovered beneath clay‐silica alteration • Gold
Slide 21: Velardeña - Overview
Velardeña - Overview • 560 ha Ag/Au property with two underground mines and two processing plants; oxide plant leased to Hecla since mid‐2015 • Mines on care and maintenance until current metals prices and mine plans indicate sustainable positive operating margin • NI 43‐101 PEA (Feb. 2015; Tetra Te
Slide 22: Velardeña – Lease of Oxide Plant
Velardeña – Lease of Oxide Plant • Source of cash: ~$4.5M annual operating margin, comprised of fixed and variable fees • Aug. 2017: Hecla purchased (for $1M) an option to secure its use of the plant through 2020 • Q2 2017: Hecla completed Oxide plant tailings impoundment expansion 21
Slide 23: Total Company Resources
Total Company Resources Grade Tonnes Silver Gold AgEq. Silver Gold (M) (M oz) ('000 oz) (M oz) g/t g/t Velardeña Properties Measured 0.4 4.3 65.0 8.9 321 4.9 Indicated 1.0 9.5 126.0 18.4 311 4.1 Inferred 1.6 16.4 239.0 33.2 320 4.7 El Quevar Indicated 2.9 45.3 ‐ 45.3 482 n/a Inferred 0.3 4.1 ‐ 4.1 4
Slide 24: Key Facts
Key Facts Stock Symbol NYSE American and TSX: AUMN Corporate Headquarters Golden, Colorado Stock Price (5/15/18), 52‐Wk Hi/Lo (US) $0.41 ($0.68/$0.36) Shares Outstanding (5/15/18) 95.1 M Warrant Shares Outstanding 11.5 M Options & Restricted Stock Units 1.9 M KELTIP* Units 1.0 M Shares Outstanding ‐
Slide 25: Appendix
Appendix Accompanying notes to El Quevar 2018 resource table shown on pg. 9 • The Company retained Amec Foster Wheeler E&C Services, Inc., a Wood Group PLC company (“Wood”), to complete an updated Mineral Resource estimate in accordance with Canadian National Instrument 43‐101 (“NI 43‐101”). The est
Slide 26: Contact Information
Contact Information Investor Relations Karen Winkler, Director of Investor Relations Phone: 303.839.5060 Email: investor.relations@goldenminerals.com Corporate Headquarters 350 Indiana Street, Suite 800 Golden, Colorado 80401 Tele. 303.839.5060 www.goldenminerals.com Transfer Agent Computershare 1.8
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