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Gold Resource updates annual gold reserve estimates

The company increased its consolidated proven and probable gold reserve grade by 20.1% and gold reserve ounces by 1.1%  

Gold Resource Corporation - Gold Resource increases annual gold reserve estimates
CEO Jason Reid said the exploration team 'delivered great results' on a modest $3.6 million budget

Gold Resource Corporation (NYSEAMERICAN:GORO) updated Monday its annual reserve estimates, increasing its consolidated proven and probable gold reserve grade by 20.1% and consolidated proven and probable gold reserve ounces by 1.1%.  

The gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada 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, 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, Gold Resource said in a statement. 

READ: Gold Resource Corp reveals high-grade results from maiden drill program at Scarlet target

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, and 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, 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 Barry Devlin, vice president of exploration.  

“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.”  

He noted that at the company’s Oaxaca Mining Unit, the Arista mine’s Switchback vein system continued to expand as it 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,” he said.

CEO Jason Reid said the exploration team “delivered great results” on a relatively modest $3.6 million 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. “

The company’s stock closed up Monday 7.2% higher at $4.31 a share in New York.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Gold Resource Corporation

Price: 3.04 USD

NYSEMKT:GORO
Market: NYSEMKT
Market Cap: $218.47 m
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