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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Something I don't understand about ECU's production

Re: Something I don't understand about ECU's production

posted on Aug 16, 2008 02:03PM

Hi Ghandi: I don't believe there is a general disinterest in financials. It could be that the numbers don't mean too much at this stage in the company's evolution. Did you obtain your financial information from sedar? Did you also read the management discussion and analysis submission on sedar dated Aug. 14? Here is one paragraph from a fairly lengthy document:

During this time of ongoing exploration success, we have also been producing three different concentrate products from our mineralized material. Our flotation plant at VelardeƱa has been producing a lead
concentrate, a zinc concentrate and a pyrite/gold concentrate from milling at an approximate rate of 200 tonnes per day (tpd). The lead and zinc concentrates can be sold to various smelters around the world and we have entered into negotiations with a number of these smelters. However, due to the small quantities of concentrate relative to major producers, and the fact that several smelters are now operating at maximum capacity, discussions to negotiate appropriate terms have taken longer than we anticipated. Nevertheless,
we expect that we will be able to secure favourable agreements with one of the potential parties we are currently negotiating with, for the sale of the lead and zinc concentrates.
We have conducted several metallurgical tests to optimize the Net Smelter Return (NSR) value of the pyrite/gold concentrate. After numerous lab tests, the preferred route to additional treatment is to roast the pyrite/gold concentrate. Roasting is a metallurgical process that involves a gas-solid reaction at elevated temperatures whereupon sulphide material is converted to oxides. We are currently in the process of conducting large scale roasting tests and preliminary results are very good.

Perhaps this will help answer your question about ECU's production activities.





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