Golden Minerals Plans Initial Drilling at Desierto, Argentina

en.Wedoany.com Reported - On September 4, Golden Minerals provided an update on the Sarita Este–Desierto project in Salta Province, Argentina, stating that it is planning the initial drilling phase at the Desierto project, targeting mineralization that may extend to depth, with further details of the drilling program expected to be announced later in September. The company currently holds a 67% interest in the Desierto project, which remains at the exploration stage, and drilling permits for the relevant concessions have been obtained.

Desierto comprises two concessions, Desierto I and Desierto II, covering a total area of approximately 2,505 hectares, immediately south of the Sarita Este concession. Golden Minerals' previously outlined drilling targets include testing the potential extension of gold mineralization discovered at Sarita Este into Desierto I, as well as evaluating other geochemical and geophysical anomalies within the Desierto area. In its second-quarter update released on July 28, the company still used the wording "evaluating the launch of the initial drilling phase" and noted that the timing of implementation would depend on the completion of joint venture documentation and funding availability; the latest update on September 4 has shifted to "planning" the initial drilling phase, with a timeline for releasing the detailed program this month.

The project partnership has changed during the same period. Golden Minerals' partner, Cascadero Copper, signed a share purchase agreement with Lumina Copper on September 1 to sell all shares of Cascadero Minerals Corporation. Lumina Copper is a wholly owned affiliate of First Quantum Minerals; the proposed transaction assets include a 49% interest in Sarita Este and 33.3% interests in each of Desierto I and Desierto II, as well as other concessions in Salta Province. If the transaction is completed, Golden Minerals will establish a new partnership with Lumina Copper, a First Quantum Minerals affiliate, on the Sarita Este and Desierto projects.

The base consideration for the Cascadero Minerals transaction is US$15 million in cash, with deferred payments of up to US$4 million. Of this, US$2 million is tied to a final construction investment decision on First Quantum's Taca Taca project, and the remaining US$2 million will be triggered once construction spending at Taca Taca reaches US$100 million. The Desierto targets planned for drilling by Golden Minerals are located south of the Taca Taca project, and the company stated that it will focus on testing deep mineralization that may be similar to the adjacent Taca Taca mineralized system.

As of the end of June, Golden Minerals held approximately US$2.5 million in cash and cash equivalents, with current liabilities of approximately US$1 million. The company has previously stated that its existing cash is expected to sustain operations until early to mid-2027, and that additional funds will still be needed through financing, asset monetization, or the introduction of partners. The number of holes, total meterage, budget, and specific start date for the initial drilling phase at Desierto have not yet been announced.