Gold Resource Corporation Increases Gold Reserves by 135% Announcing Maiden Mineral Reserve for Isabella Pearl Gold Project, ...
April 19 2018 - 7:45AM
Gold Resource Corporation (NYSE American: GORO) (the “Company”)
today announced its maiden mineral reserve for the Isabella Pearl
gold project located in Mineral County, Nevada, increasing its
Company-wide gold reserves by 135%. Gold Resource Corporation is a
gold and silver producer, developer and explorer with operations in
Oaxaca, Mexico and Nevada, USA. The Company has returned $110
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.
Proven and probable reserves included in the Isabella Pearl
reserve report (with a drill data cutoff date of December 31, 2017)
include 2,694,500 tonnes grading 2.22 grams per tonne (g/t) gold
and 13 g/t silver, equating to 192,600 gold ounces and 1,129,100
silver ounces (see table below). When combined with the
Oaxaca Mining Unit’s December 31, 2017 mineral reserve,
Company-wide proven and probable reserve tonnes now total
5,195,600, an increase of 108%, while gold ounces in the proven and
probable category total 335,000, an increase of 135%.
“We are very pleased to release our initial
reserve report for the Isabella Pearl gold project,” stated Mr.
Barry Devlin, Vice President of Exploration for Gold Resource
Corporation. “The impressive gold grades for a potential open
pit heap leach operation at Isabella Pearl is what first attracted
our Company to this project. An average gold grade of 2.22
grams per tonne combined with positive metallurgy exceeding 80
percent crushed rock gold recovery have the potential to make this
a very exciting open pit, heap leach project.”
“Our reserve for the Isabella Pearl gold project
clearly demonstrates the potential positive impact this project
could have on shareholder value once unlocked by production,”
stated Mr. Jason Reid, President and CEO of Gold Resource
Corporation. “Increasing our gold reserves by 135% with this
project will be an important driver of Gold Resource Corporation’s
future revenues and growth profile which includes targeting a more
than 100% increase to our annual gold production once Isabella
Pearl is fully operational. We are excited to be in the final
stages of permitting and are optimistic that 2018 will be an
exciting year of mine construction at Isabella Pearl.”
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Description |
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Tonnes |
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Gold g/t |
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Silver g/t |
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Gold Ounces |
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Silver Ounces |
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Isabella Pearl
Project |
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Proven |
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590,500 |
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5.44 |
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37 |
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103,300 |
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697,900 |
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Probable |
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2,104,000 |
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1.32 |
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6 |
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89,300 |
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431,200 |
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Isabella Pearl
Project Total |
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2,694,500 |
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2.22 |
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13 |
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192,600 |
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1,129,100 |
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Notes to the Isabella Pearl P&P reserves:
- Metal prices used for P&P reserves were $1,222 per ounce of
gold and $16.62 per ounce of silver. These prices reflect the
three-year trailing average prices for gold and silver.
- The quantities of material within the designed pits were
calculated using a cutoff grade of 0.61 Au g/t for Crushed ore and
0.38 Au g/t for Run-of-Mine (ROM) ore.
- Mining, processing, energy, administrative and
smelting/refining costs were based on first quarter 2018 cost
estimates used for the Isabella Pearl Project feasibility
study.
- Metallurgical gold recovery assumptions used were 81% for
Crushed ore and 60% for ROM ore. These recoveries reflect
predicted average recoveries from metallurgical test programs.
- Silver is an economic mineral of interest but only a minor
amount will be recovered. Silver recoveries were not
considered in the Isabella Pearl Project feasibility study.
- P&P reserves are diluted and factored for expected mining
recovery.
- Figures in tables are rounded to reflect estimate precision and
small differences generated by rounding are not material to
estimates.
The full reserve report and feasibility study will be available
in the near future from the Company’s website using the following
link: http://goldresourcecorp.com/reserve-reports.php
About GRC:
Gold Resource Corporation is a gold and silver producer,
developer and explorer with operations in Oaxaca, Mexico and
Nevada, USA. The Company targets low capital expenditure
projects with potential for generating high returns on
capital. The Company has 57,230,793 shares outstanding, zero
warrants and has returned $110 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.
Cautionary Statements: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.
Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.goldresourcecorp.com
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