Gold Resource Corporation Provides Oaxaca Mining Unit Exploration Update Including 8.54 g/t Gold Intercept Over 3.87 Meters, Targets 2016 Mill Feed From Alta Gracia Property
COLORADO SPRINGS, CO–(Marketwired - Jul 30, 2015) - Gold Resource Corporation (NYSE MKT: GORO) (the “Company”) announced high-grade drill results from three of its six properties within its Oaxaca Mining unit. The Company is also progressing towards 2016 mill feed from Alta Gracia and an Aguila mill agitated leach circuit startup. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned over $105 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The Company reported high-grade exploration drill results from its Alta Gracia property located approximately 16 kilometers northwest of the Company’s producing Arista Mine. Hole 4150006 at Alta Gracia’s Mirador vein returned 4.01 meters grading 2.52 grams per tonne (g/t) gold and 595 g/t silver. A second Mirador vein intercept in the hanging wall (“HW”) returned 2.12 meters grading 1.74 g/t gold and 493 g/t silver (see table below). Previous high grade Mirador vein drill intercepts from January 2015 included 5.06 meters grading 1.53 g/t gold and 1,383 g/t silver (Hole 4140009), and 8.58 meters grading 1.34 g/t gold and 700 g/t silver (Hole 4140013).
The Mirador vein gold and silver mineralization discovered to date does not show any appreciable base metals, and as such the Company expects to truck any precious metal mineralization to the Aguila mill’s agitated leach circuit for processing. Mining agreements with the local community at Alta Gracia are being finalized and mine permitting is underway. Historic mining took place at Alta Gracia and the Company plans to utilize existing mine development to access mineralization in an expedited manner. The Company is targeting 2016 to be in position to mine, truck and process Alta Gracia mineralized material once final community agreements and permits are in place. The Company is moving forward towards production at Alta Gracia based on internal analysis and has not established proven and probable reserves at Alta Gracia.
The Company also reported high-grade exploration drill results from its Las Margaritas property located approximately 7 kilometers northwest of the Company’s producing Arista Mine. Hole 315003 intercepted the Tapada vein returning 2.15 meters grading 1.15 g/t gold and 599 g/t silver. Hole 315004 intercepted 0.68 meters grading 1.65 g/t gold and 1,260 g/t silver. Hole 315002 returned 0.30 meters grading 7.05 g/t gold and 4,010 g/t silver. Three additional drill holes are reported in the table below, all of which intercepted high grade mineralization (see table). The Company believes the high-grade veins at Las Margaritas may widen at depth, similar to what has been defined at the Arista deposit and the associated Switchback discovery where thin veinlets exposed at the surface widen to multiple meter width veins at depth. Similar to Alta Gracia, drilling at Las Margaritas to date does not show any appreciable base metals, therefore any potential precious metal mineralization could be trucked to the Aguila mill and processed through the agitated leach circuit in the future.
At the Aguila Project, the Company reported high-grade exploration drill results from targeted mineralized extensions at the historic Aguila open pit. Located less than 1 kilometer from the Aguila mill, the Aguila open pit is the small starter pit from which the Company commenced commercial production in July 2010. Production from the open pit ceased in March 2011 when the Company began mining and processing higher grade polymetallic ore from the Arista underground mine. Drilling at the open pit has targeted feeder veins at depth as well as an expansion of the original manto (flat lying) vein mined in 2009 and 2010.
Recent manto intercepts include Hole 1150025 which intercepted 3.87 meters grading 8.54 g/t gold and 80 g/t silver, including 1.35 meters grading 17.65 g/t gold and 110 g/t silver. Hole 1150019 intercepted 3.60 meters grading 6.01 g/t gold and 97 g/t silver, including 0.92 meters grading 14.00 g/t gold and 261 g/t silver. Hole 1150010 intercepted 3.12 meters grading 4.59 g/t gold and 224 g/t silver, including 0.79 meters grading 4.94 g/t gold and 502 g/t silver. Nine additional drill holes are reported, all of which intercepted the Manto with high grade gold (see table).
All of the manto drilling indicates additional high-grade gold mineralization north/northwest of the historic open pit. If enough additional manto tonnage can be identified, this mineralization could potentially be mined and processed in either the Aguila mill’s flotation or agitated leach circuits.
The Company continues to look to build a critical mass from which to one day begin operating its agitated leach circuit in tandem with the mill’s flotation circuit. Potential mineralized material at the Alta Gracia and/or Las Margaritas properties, the remaining stockpiles of open pit ore, the recently drilled manto mineralization to the north of the open pit and the potential discovery of open pit feeder veins at depth are targeted to provide agitated leach mill feed. The Company envisions numerous mineral draw points from its six properties, along its 55 kilometer mineralized trend, to feed both circuits of its Aguila mill.
Mr. Barry Devlin, Vice President of Exploration, stated, “The recent drill results from Alta Gracia, Las Margaritas and the northerly extension of the open pit on the Aguila Project continue to define high grade gold and silver mineralization along the San Jose structural fault corridor. With the Company now controlling over 55 kilometers of this largely unexplored prospective corridor, we are very excited with these continued high-grade results underscoring the corridors potential.”
“While we continue to drill high-grade along our mineralized corridor, we are excited to be delineating mineralization at Alta Gracia for potential agitated leach mill feed,” stated Gold Resource Corporation’s CEO and President, Mr. Jason Reid. "It is particularly exciting to be working towards near-term production from a second property as we work to permit Alta Gracia. Since we plan to access the mineralization from existing artisanal portals and drifts and truck the material offsite for processing at our Aguila mill, we expect our Alta Gracia footprint and impact of operations to be less than typically encountered in mining operations. As a result, we are optimistic that the Alta Gracia permitting process could be far less arduous and perhaps more timely than other permitting scenarios. Assuming the Company successfully secures its agreements and permits, mineralized material feed from Alta Gracia to our mill’s agitated leach circuit is targeted to commence in 2016, and any additional gold and silver production would add to the Company’s existing production profile.“
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,179,369 shares outstanding, no warrants, no long term debt and has returned over $105 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC’s website, located at www.Goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “plan”, “target”, “anticipate,” “believe,” “estimate,” “intend” and “expect” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company’s actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the SEC.