via NEWMEDIAWIRE – Gold Resource Corporation (NYSE American: GORO)
(the “Company”) today announced the acquisition of the Golden Mile
property located in the Bell Mining District, Mineral County,
Nevada. The 9,334 acre property contains surface and near
surface high-grade gold in two established mineralized zones.
Historic third-party drill intercepts from Golden Mile include:
10.70 meters of 8.76 grams per tonne (g/t) gold from surface, 36.60
meters of 10.26 g/t gold from 15.20 meters downhole, and 6.10
meters of 46.53 g/t gold from 18.29 meters downhole. Golden
Mile is an advanced exploration property with district-size
potential for expansion of known mineralized zones and new
discoveries. The property also adds considerably to the Company’s
prospective exploration land package by more than 51%. This
fifth high-grade property solidifies the Company’s Nevada Mining
Unit as controlling a dominant land position in this region of the
Walker Lane Mineral Belt. Gold Resource Corporation is a gold
and silver producer, developer and explorer with operations in
Oaxaca, Mexico and Nevada, USA. The Company has returned $114
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.
Golden Mile acquisition highlights include:
- 100% ownership
- 9,334 acre advanced high-grade
gold exploration property
- Two established mineralized
zones
- Open pit heap leach project
potential
- Surface and near surface
high-grade gold drill intercepts*
- Drill intercepts including
36.60 meters of 10.26 grams per tonne gold*
- Proximity to Company’s
producing Isabella Pearl mine, 23 miles
- Potential equipment and
processing facility sharing with Isabella Pearl mine
- Bottle roll tests indicate
gold mineralization is amenable to cyanide leaching
- 451 unpatented lode mining
claims; 5 patented mining claims
- Acquisition boosts Nevada
Mining Unit acreage by more than 51% (27,600)
- Mining friendly jurisdiction,
Nevada, U.S.A.
*Third party drill intercepts
The Company acquired 100% interest in the Golden Mile property
from two separate business entities for total consideration of
US$650,000, consisting of US$550,000 cash and US$100,000 of Gold
Resource Corporation shares. The sellers retained a net
smelter return royalty (NSR) of 3% on future production from the
property claims. The Company has the right to buy down 1% of
the NSR on the claims for US$1,500,000.
The Golden Mile property covers an area of 9,334 acres
consisting of 451 unpatented lode mining claims and 5 patented
mining claims in central Nevada’s Walker Lane Mineral Belt in
Mineral county, Nevada. Two established mineralized zones
have been drilled by previous operators on the property with the
larger mineralized zone located within the 5 patented claims.
The property is located approximately 23 miles east-southeast of
the Company’s producing Isabella Pearl mine (see map) and becomes
the fifth property in the Company’s Nevada Mining Unit. Gold
Resource Corporation’s Nevada Mining Unit now controls
approximately 27,600 acres of highly prospective exploration land
in south central Nevada’s Walker Lane Mineral Belt.
Mineralization at Golden Mile is intrusion related gold-copper
exo- and endoskarn associated with massive replacements of
carbonate rocks and shear hosted gold. Historical 1930’s
production records show gold along with minor copper and silver
being produced from small open pits and shallow underground
workings. More recently, third party drill intercept
highlights include:
Hole # CMA89-7
36.60m of 10.26 g/t gold
incl. 9.10m of 34.89 g/t
gold
16.70m of 6.04 g/t
gold
incl. 3.00m of 29.75 g/t
gold
Hole # GMC002
6.10m of 46.53 g/t gold
incl. 3.05m of 91.00 g/t
gold
Hole # CMA89-14
10.70m of 8.76 g/t gold
incl. 1.50m of 38.06 g/t
gold
(see additional drill highlight table below)
The Golden Mile property met the Company’s acquisition criteria
for numerous reasons including: high-grade gold drill results,
low-cost open pit heap leach project potential, proximity to the
Company’s producing Isabella Pearl gold mine for operational
synergies, large land package containing two advanced exploration
target zones of gold mineralization, numerous additional
exploration targets, preliminary metallurgical test work indicating
cyanide leachability, 100% ownership and significantly strengthens
the Company’s Nevada Mining Unit land position.
Management plans to secure exploration drill permits and
commence follow-up drill programs in the near future focusing on
the two established mineralized zones, the Golden Mile zone and
PS-SP zone, with the goal to delineate both into mineable open pit
heap leach deposits. While the district-size potential has
numerous exploration targets, at this point management will focus
on the known mineralized zones with high probability resource
delineation based on the past third-party drill results and
historic preliminary resource estimates. With successful
follow-up and delineation drilling, Golden Mile could become one of
the next mines to be developed from the Nevada Mining Unit after
the Isabella Pearl mine. During due diligence, the Company
also commissioned preliminary metallurgical test work which
included cyanide bottle-roll tests yielding results of 82% gold
recovery, demonstrating that gold mineralization is amenable to
cyanide leaching.
Mr. Barry Devlin, Vice President of Exploration, stated, “We
continue to evaluate numerous opportunities in Nevada, and are
excited to have acquired the Golden Mile property within our Nevada
Mining Unit’s area of influence. This property not only
demonstrates exceptional gold grades from prior third-party drill
programs, such as six meters of 46 grams per tonne gold starting
less than twenty meters below the surface, but its district scale
hosts numerous targets beyond the two known zones of
mineralization. Mineralization at Golden Mile also appears
genetically related to a gold-bearing copper-iron skarn-forming
event and may resemble gold rich skarns in the Battle Mountain
District of Nevada, such as McCoy. We are looking forward to
building on the exploration database and third-party preliminary
resources on the Golden Mile property with a near-term goal of
delineating at least two high-grade open pit gold deposits.”
“This acquisition of another near surface high-grade gold
property substantially adds to our Nevada Mining Unit, strengthens
our prospective land position and provides additional optionality
for the Company in the future,” stated Gold Resource Corporation’s
CEO and President, Mr. Jason Reid. “Our plan with this
property, optimistically assuming successful delineation of the
known mineralized zones into economic deposits, provides
optionality which could include designing and permitting the Golden
Mile as a project and process plant without an ADR facility which
takes gold loaded carbon into gold doré. By only permitting a
plant that takes gold to a loaded carbon stage and then hauling the
carbon a short distance up the road to our Isabella Pearl mine’s
ADR facility for doré production, we could save permitting time,
engineering and construction costs and leverage our already
permitted and operating ADR facility for plant longevity. In
addition, with the largest known mineralized zone at Golden Mile on
patented ground, permitting may take less time than otherwise
expected.”
Mr. Reid continued, “While we are very excited about the
district acquisition of the Golden Mile high-grade gold property,
we are not taking our eye off the ball for exploration at our East
Camp Douglas property and still plan to commence our first drill
program this year as scheduled. We are currently drilling the
Scarlet target located next to our operating Isabella Pearl
mine. We have and continue to build what I believe to be the
most exciting land position for high-grade gold exploration in this
region of Nevada, and we are positioning to continue to be a Nevada
gold producer for a very long time.”
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 $114 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, the scope,
duration, and impact of the COVID-19 pandemic on mining operations,
Company employees, and supply chains, as well as the scope,
duration and impact of government action aimed at mitigating the
pandemic, may cause the actual results and future events to differ
materially from those expressed or implied by such forward-looking
information. Also, 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
- Gold Resource Corporation - GORO
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