Gold Resource Corporation (NYSEAMERICAN:GORO) on Monday announced the expansion of its Arista Mine’s Switchback vein system in Mexico, as well as newly discovered mineralized veins.
In its first advance, the expansion of Arista Mine’s Switchback vein system, with intercepts including 16.95 meters of 6.21 grams per tonne (g/t) gold, 80 g/t silver and 4.50% zinc, will extend its strike length by about 100 meters to the northwest while broadening the Switchback vein system’s vertical reach in depth and height in this area.
“Our exploration efforts extended the strike length and vertical extent of Switchback,” said Barry Devlin, vice-president of exploration for Gold Resource, in a statement.
In the second advance, newly discovered mineralized veins were intercepted in a pair of drill holes testing an exploration target called Andesite Hill, which is located southwest of the Arista Mine’s Arista vein system. Both holes intercepted mineralized veins, including 2.29 meters of 4.01 g/t gold, 580 g/t silver and 5.07% zinc.
These new veins represent either an expansion to the Arista Vein system or the discovery of a third vein system to the southwest of both the Switchback and Arista vein systems.
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“[The] discovery of new, mineralized veins to the southwest of the Arista vein system speak to the expansion potential of this large epithermal vein system,” said Devlin. “It is too early to tell if these newly discovered veins are an extension of the Arista Vein system or if this a new parallel system to the southwest mirroring the Switchback and Arista Vein system. Either way, this deposit continues to grow.”
Gold Resource is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada in the US. The company targets low-capital expenditure projects with potential for generating high returns on capital.
The company has returned $111 million back to its shareholders since commercial production commenced July 1, 2010, and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Gold Resource shares closed up almost 1$ to hit $3.82 on Friday.