Gold Resource Corporation Declares Commercial Production at Isabella Pearl Gold Mine, Mineral County, Nevada
October 07 2019 - 7:45AM
via NEWMEDIAWIRE – Gold Resource Corporation (NYSE American: GORO)
(the “Company”) today announced its Isabella Pearl gold mine,
located in Mineral County, Nevada, has reached commercial
production levels. This commercial production announcement is
based on mining rates, ore placement on the heap leach pad, mining
and process costs, production ramp-up, and reaching positive
operational cash flow during the month of September. The Company
produced first gold dore from the project in late April 2019 and
expects additional improvements as the project continues through
the ramp up phase. Gold Resource Corporation is a gold and
silver producer, developer and explorer with operations in Oaxaca,
Mexico and Nevada, USA. The Company has returned $112 million to
its shareholders in consecutive monthly dividends since July 2010
and offers its shareholders the option to convert their cash
dividends into physical gold and silver and take delivery.
Gold production levels at the Isabella Pearl mine have been
ramping up since the first dore bar was produced in late April
2019. Preliminary September production of gold loaded to
carbon and dore produced totaled in excess of 2,000 ounces. The
Company plans to update its 2019 global gold production outlook in
the upcoming third quarter preliminary production announcement to
include estimated gold ounces targeted from its Isabella Pearl
project for the fourth quarter. While it is still early in the
project ramp up phase, 2,000 ounces of monthly gold production at
Isabella Pearl is expected to continue generating positive cash
flow by covering operational costs at the project assuming a gold
price of $1,450 per ounce. The Company’s 2020 annual
production outlook for both Oaxaca, Mexico and Nevada, U.S.A. will
be released in early 2020.
Construction of the Isabella Pearl project’s ADR process
facility is complete with final commissioning occurring over the
next several weeks to enable on-site dore production.
Off-site processing of the gold infused carbon into dore will
continue until the on-site dore facility is fully
optimized.
Mr. Jason Reid, CEO and President of Gold Resource Corporation,
stated, “I am very pleased to report the Isabella Pearl mine, which
broke ground and produced first dore in just ten months, has
reached commercial production levels just sixteen months after
breaking ground on the project in June 2018. Our team has
worked extremely hard these past few months navigating the
challenges of mine commissioning, managing construction contractor
difficulties and the typical production ramp up of a new mine. I am
very excited that during the month of September the Isabella Pearl
mine moved into a phase where mining and processing rates and ore
placement are now expected to generate positive cash flow on a
consistent basis. This is a milestone for any mining project and
should have a significant impact on the Company’s overall revenues
and net income moving forward.”
The Isabella Pearl ramp up phase will continue over the next
year as the deposit is made up of two primary ore bearing areas,
the Isabella and the Pearl with the former mineralization
outcropping at the surface and the latter higher-grade
mineralization located deeper within the
deposit. Approximately eighty percent of the ore in this
deposit is in the Pearl structure, and the Company continues
removing overburden to reach this high-grade area targeted in
2020.
Mr. Reid stated, “There will most likely be unforeseen
additional challenges as there always are in the mining industry,
but given where we were sixteen months ago putting the first shovel
in the ground to where we are today, loading the pad with Isabella
ore and having reached positive cash flow in September, I am very
pleased and excited at our progress at the Isabella Pearl
mine. With this positive cash flow development, I believe we
are very close to reaching the inflection point of a near-term
shareholder dividend increase.”
Mr. Reid continued, “The “at-the-market” ATM facility used to
help finance the project’s completion is still in place and is
expected to remain in place going forward as optionality for the
Company if and when needed. I am pleased to report the
Company has not used the ATM since July 30, 2019. While the Company
reserves the right to further utilize the ATM, we currently do not
foresee the need to do so.”
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 returned $112 million back to its shareholders in
consecutive monthly dividends since July 2010 and offers its
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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