Golden Minerals Announces Preliminary Economic Assessment For Santa Maria Project

GOLDEN, Colo., Feb. 15, 2017

The PEA presents a base case assessment of developing Santa Maria's mineral resource and incorporates the results of an updated National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate dated as of February 15, 2017.

PEA Highlights

• Post-tax net present value ("NPV") of $6.4 million and pre-tax internal rate of return of 84 percent at an 8 percent discount rate
• Total capital requirements of $1.2 million (initial capital $1.0 million, sustaining capital $0.2 million)
• Pre-production development time 10 to 11 months
• Life of mine ("LOM") 3.2 years
• Payback in month 16
• LOM free cash flow $8.5 million
• LOM silver production 2.1 Moz; LOM gold production 7.2 koz
• LOM average silver grade 332 grams per tonne ("gpt"); average gold grade 1.28 gpt
• LOM cash cost of $12 per Ag oz (net of Au credits)

Note:  PEA parameters assume prices of $1,222/oz gold, $17.30/oz silver and a discount rate of eight percent. Values above are approximate. All $ values in $US.

Warren Rehn, President and Chief Executive Officer of Golden Minerals, commented, "We are pleased with the results of this independently-prepared PEA, as it presents a low cost and profitable operation at current metals prices. If we go ahead with the project, production at Santa Maria would mark Golden's re-emergence as a producer of close to one million silver equivalent ounces annually, with the potential to move the company to positive net cash flow. We believe there is also excellent potential for expansion of the project which could lead to continued production beyond the initial three-year period considered in the PEA."

Next Steps