Golden Minerals Company
PROJECT PIPELINE – Advanced Exploration Stage Project

El Quevar

Exploration Activities

El QuevarWe initiated exploration at El Quevar during 2004. Our work indicates that the Yaxtché deposit, one of the potential zones of mineralization discovered at El Quevar, is at least 2 kilometers in strike length and is continuous laterally and to depths of more than 300 meters below surface in the main area. More recent results also support a possible eastward extension of the Yaxtché deposit and recognize an emerging new mineralized trend five kilometers north of the Yaxtché deposit. In August 2010, Micon International Limited used data from 168 drill holes at the Yaxtché deposit in its Canadian National Instrument 43-101-compliant resource estimate. That estimate reported 0.9 million tonnes of ore containing 8.9 million ounces of silver in the indicated category at a grade of 310 grams per tonne, and 4.8 million tonnes of ore containing 51.5 million ounces of silver in the inferred category at a grade of 336 grams per tonne.

In April 2011, we announced the discovery of more than 40 mineralized structures believed to be tension faults. Although they are narrow, generally less than a quarter of a meter in width, indications from x-ray fluorescence (XRF) technology show that the structures tend to be of substantial grade, typically in excess of one kilogram per tonne silver. These structures were not anticipated in the initial modeling of the El Quevar deposit, in which mineral concentrations were modeled to follow the alteration envelope, generally trending N60W.

We have constructed a camp at the project site that accommodates up to 140 personnel. A production-sized portal and decline have been constructed and over 400 meters of underground development completed. Over 250 meters of drifting along strike in the central Yaxtché have also been completed.

Golden Minerals has obtained all permits required to conduct exploration activities and have completed baseline studies. A further environmental impact assessment process would be required to support the permits necessary for construction and mining. If the El Quevar project proceeds to development and construction, we would be required to obtain numerous additional permits from national, provincial and municipal authorities in Argentina.

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