Gold Resource Corporation Updates Proven & Probable Reserves, Boosting Consolidated Gold Grade and Ounces
March 02 2020 - 4:15PM
Gold Resource Corporation (NYSE American: GORO) (the “Company”)
updated its annual reserve estimates as of December 31, 2019,
increasing its consolidated proven and probable gold reserve grade
by 20.1% and consolidated proven and probable gold reserve ounces
by 1.1%. Gold Resource Corporation is a gold and silver
producer, developer and explorer with operations in Oaxaca, Mexico
and Nevada, USA. The Company has returned $113 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.
As of December 31, 2019, proven and probable reserves at the
Nevada Mining Unit’s Isabella Pearl Mine totaled 2,247,400 tonnes
grading 3.05 grams per tonne (g/t) gold. Proven and probable
reserve gold ounces included in the reserve report increased
year-over-year by 2.5% to 220,100 ounces, an increase of 5,300 gold
ounces, while gold grade increased 33.8% to 3.05 g/t. This
addition maintains a more than four-year mine life estimate at the
project. Company management is optimistic it can continue to
expand mine life at the Isabella Pearl Project by discovering
additional neighboring deposits at exploration targets such as
Scarlet along the project’s 10-kilometer property trend.
As of December 31, 2019, proven and probable reserves at the
Oaxaca Mining Unit totaled 2,831,600 tonnes grading 1.97 g/t gold
and 122 g/t silver, equating to 179,300 gold ounces and 11,096,400
silver ounces. The reserve report also includes significant
base metals from the Arista Mine consisting of 11,600 tonnes of
copper grading 0.4%, 45,500 tonnes of lead grading 1.7% and 133,100
tonnes of zinc grading 4.8%. Mine life at the Company’s
Oaxaca Mining Unit is estimated at four years based on a mill
throughput capacity of 2,000 tonnes of ore per day.
“2019 exploration drill results incorporated
into the latest December 31, 2019 reserve reports for both the
Nevada and Oaxaca Mining Units demonstrate significant exploration
potential,” stated Mr. Barry Devlin, Vice President of Exploration
for Gold Resource Corporation. “Deep drilling at Isabella
Pearl significantly increased the reserve gold grade while adding
ounces to the project. We were also successful with our first drill
campaign at the Scarlet target adjacent to the producing Isabella
Pearl mine. At our Oaxaca Mining Unit, the Arista mine’s
Switchback vein system continued to expand as we drilled the
extensions of this powerful epithermal vein system. The
Soledad vein now has an average width of 11 meters, which is an
important driver aiding mine operations in delivering the targeted
2,000 tonnes per day to the process mill. Exploration goals
for Nevada in 2020 include a strong focus on the Scarlet target at
Isabella Pearl, as well as a first drill program at the East Camp
Douglas property targeted to commence mid-year. In Oaxaca,
2020 will primarily continue to focus on the extensions of the
Arista mine’s vein systems.”
“Our exploration team had another great year
defining and expanding the mineralized extensions of our producing
mines in both Nevada and Oaxaca,” stated Mr. Jason Reid, President
and CEO of Gold Resource Corporation. “With construction and
commissioning of a new mine being a capital-intensive process
during the year, our exploration team delivered great results with
a relatively modest $3.6 million 2019 exploration budget. The
Isabella Pearl mine’s average life of mine gold grade increased
from 2.28 grams per tonne to 3.05 grams per tonne, a very
attractive grade for any open pit mine. For 2020, we are also
excited to follow up on the first successful round of drilling at
the Scarlet target, as this has the potential to become the
Isabella Pearl project’s next gold deposit along our 10-kilometer
target rich property position. We are also eager to continue
testing the extensions of the Arista mine in Oaxaca with dedicated
exploration drifts to access areas we have never been able to drill
before due to limited drill station locations. July 2020 will
mark ten years that the Company has been mining in Oaxaca, and it
has been nothing short of amazing to watch the continued expansion
of this epithermal deposit over the years. A decade of mining
later we continue to believe this large and powerful epithermal
system has tremendous potential to grow.”
(more below)
Below is a summary of the reserve report for
December 31, 2019:
GOLD RESOURCE CORPORATION PROVEN AND PROBABLE
RESERVESAs of December 31, 2019
Description |
|
Tonnes |
|
Gold g/t |
|
Silver g/t |
|
PreciousMetal GoldEquivalent g/t |
|
GoldOunces |
|
SilverOunces |
|
PreciousMetal GoldEquivalentOunces |
|
Copper % |
|
Lead % |
|
Zinc % |
Oaxaca Mining
Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arista Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven |
|
2,591,700 |
|
2.04 |
|
112 |
|
3.43 |
|
169,600 |
|
9,295,900 |
|
285,900 |
|
0.4 |
|
1.7 |
|
4.9 |
Probable |
|
163,700 |
|
1.47 |
|
172 |
|
3.62 |
|
7,800 |
|
906,400 |
|
19,000 |
|
0.3 |
|
1.3 |
|
4.0 |
Arista Mine Total |
|
2,755,400 |
|
2.00 |
|
115 |
|
3.44 |
|
177,400 |
|
10,202,300 |
|
304,900 |
|
0.4 |
|
1.7 |
|
4.8 |
Mirador Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven |
|
75,500 |
|
0.75 |
|
365 |
|
5.31 |
|
1,800 |
|
885,700 |
|
12,900 |
|
|
|
|
|
|
Probable |
|
700 |
|
1.33 |
|
393 |
|
6.25 |
|
100 |
|
8,400 |
|
100 |
|
|
|
|
|
|
Mirador Mine Total |
|
76,200 |
|
0.76 |
|
365 |
|
5.32 |
|
1,900 |
|
894,100 |
|
13,000 |
|
|
|
|
|
|
Oaxaca Mining Unit
Total |
|
2,831,600 |
|
1.97 |
|
122 |
|
3.58 |
|
179,300 |
|
11,096,400 |
|
317,900 |
|
|
|
|
|
|
Nevada Mining Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Isabella Pearl Project |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven |
|
893,300 |
|
5.39 |
|
35 |
|
5.82 |
|
154,800 |
|
998,000 |
|
167,300 |
|
|
|
|
|
|
Probable |
|
1,354,100 |
|
1.50 |
|
7 |
|
1.59 |
|
65,300 |
|
312,700 |
|
69,200 |
|
|
|
|
|
|
Isabella Pearl Project Total |
|
2,247,400 |
|
3.05 |
|
18 |
|
3.27 |
|
220,100 |
|
1,310,700 |
|
236,500 |
|
|
|
|
|
|
Nevada Mining Unit
Total |
|
2,247,400 |
|
3.05 |
|
18 |
|
3.27 |
|
220,100 |
|
1,310,700 |
|
236,500 |
|
|
|
|
|
|
Total |
|
5,079,000 |
|
2.45 |
|
76 |
|
3.40 |
|
399,400 |
|
12,407,100 |
|
554,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the 2019 P&P reserves:
- Metal prices used for P&P reserves were $1,306 per ounce of
gold, $16.32 per ounce of silver, $2.83 per pound of copper, $0.99
per pound of lead and $1.27 per pound of zinc. These prices
reflect the three-year trailing average prices for gold, silver,
copper, lead and zinc.
- Precious metal gold equivalent is 80.03:1 using gold and silver
only to calculate gold equivalencies.
- A breakeven Net Smelter Return (“NSR”) cutoff grade of $76 per
tonne was used for estimations of P&P reserves at the Arista
Mine. The term “cutoff grade” means the lowest NSR value
considered economic to process.
- No appreciable amounts of base metals are present in the veins
identified to-date at the Mirador Mine at the Alta Gracia
project. A breakeven cutoff grade of 2.50 g/t gold-equivalent
(AuEq) was used for proven and probable reserves at the Mirador
Mine using gold and silver only to calculate gold
equivalencies.
- Mining, processing, energy, administrative and
smelting/refining costs were based on 2019 actual costs for the
Oaxaca Mining Unit.
- Arista Mine metallurgical recovery assumptions used were 78%
for gold, 91% for silver, 78% for copper, 78% for lead and 81% for
zinc. Mirador Mine metallurgical recovery assumptions used
were 87% for gold and 88% for silver. These recoveries
reflect 2019 actual average recoveries for the Aguila and Alta
Gracia projects.
- P&P reserves are diluted and factored for expected mining
recovery.
- Minimum mining width for P&P reserves is 1.5 meters for the
Arista and Mirador underground mines.
- For the Isabella Pearl Mine, the quantities of material within
the designed pits were calculated using a cutoff grade of 0.44 Au
g/t.
- Mining, processing, energy, administrative and
smelting/refining costs were based on 2019 actual costs for the
Isabella Pearl Mine.
- Metallurgical gold recovery assumptions used for the Isabella
Pearl project were 81% for crushed ore and 60% for ROM ore.
These recoveries reflect predicted average recoveries from
metallurgical test programs.
- Isabella Pearl 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.
GOLD RESOURCE CORPORATION MINERALIZED MATERIALAs
of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Tonnes |
|
Gold g/t |
|
Silver g/t |
|
Copper % |
|
Lead % |
|
Zinc % |
Arista Mine |
|
1,574,700 |
|
1.46 |
|
141 |
|
0.2 |
|
1.2 |
|
3.4 |
Alta Gracia Project |
|
170,400 |
|
0.77 |
|
376 |
|
|
|
|
|
|
Margaritas Project |
|
26,000 |
|
0.51 |
|
260 |
|
|
|
|
|
|
Oaxaca Mining Unit Total |
|
1,771,100 |
|
|
|
|
|
|
|
|
|
|
Notes to the 2019 mineralized material:
- Mineralized Material is exclusive of P&P Reserves.
- Metal prices used for mineralized material were $1,306 per
ounce of gold, $16.32 per ounce of silver, $2.83 per pound of
copper, $0.99 per pound of lead and $1.27 per pound of zinc.
These prices reflect the three-year trailing average prices for
gold, silver, copper, lead and zinc.
- A breakeven Net Smelter Return (“NSR”) cutoff grade of $76 per
tonne was used for estimations of mineralized material. The
term “cutoff grade” means the lowest NSR value considered economic
to process.
- No appreciable amounts of base metals are present in the veins
identified to-date at the Alta Gracia project including the Mirador
Mine, and the Margaritas project. A breakeven cutoff grade of
2.50 g/t gold-equivalent (AuEq) was used for mineralized material
at the Alta Gracia and Margaritas projects using gold and silver
only to calculate gold equivalencies at a ratio of 80.03 to 1.
- Arista Mine metallurgical recovery assumptions used were 78%
for gold, 91% for silver, 78% for copper, 78% for lead and 81% for
zinc. Alta Gracia and Margaritas projects metallurgical
recovery assumptions used were 87% for gold and 80% for silver.
These recoveries reflect 2019 actual average recoveries for the
Aguila and Alta Gracia projects.
- Mineralized material is diluted and factored for expected
mining recovery.
- Minimum mining width for mineralized material is 1.5 meters for
the Arista Mine and the Alta Gracia and Margaritas projects.
- Figures in tables are rounded to reflect estimate precision and
small differences generated by rounding are not material to
estimates.
- 100% of the Isabella Pearl project pit contained mineralized
material was converted to reserves.
The full reserve report 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 returned $113 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 DevelopmentGreg Patterson
303-320-7708www.goldresourcecorp.com
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