Golden Minerals Company (NYSEA: AUMN; TSX: AUMN) introduced Thursday that it has elected to stop silver-gold mining at its Velardeña houses in Mexico just two months after restarting the operation. Located in Durango, Mexico, Velardeña hosts two former underground mines and processing turbines.
On December 18, 2023, the organisation officially introduced the Velardeña residences lower back into production, with mining happening in six stopes. The plan began to ramp up everyday production to hundred and fifty tonnes per day in March and, in the long run, reach a total production charge of 325 tonnes in the second quarter.
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A month earlier than that, it began producing gold-wealthy pyrite flotation concentrates from Velardeña, which have been stockpiled at the mines because overdue 2015, when they were ultimately operational. Afterwards, mining activities were suspended due to aggregate of low metals charges, mining dilution and metallurgical demanding situations.
This time around, Golden hoped the newly restarted Velardeña mines could deliver tremendous coin float in the first half of 2024 after gradually increasing the manufacturing rate. However, the miner stated in a press launch Thursday that the overall performance of the mine and processing plant at some stage in the past few months has not done the projected results.
As a result, the company stated it will now evaluate capacity alternatives for the Velardeña homes, which can also encompass selling homes or finishing up certain of its Mexico operations. Its primary awareness in the intervening time is the exploration-degree Yoquivo property in Chihuahua country, containing an inferred valuable resource of 17.2 million oz. Gold equals 937,000 tonnes, grading 410 g/t silver and 2.1 g/t gold.
Golden Minerals’ inventory plunged 37.5% to $0.45 by midday Thursday following the declaration. It fell as much as 45.5 to a fifty-two-week low of $ 0.37 before the consultation.
