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Globe Newswire 26-Feb-2019 7:30 AM
COLORADO SPRINGS, Colo., Feb. 26, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Gold Resource Corporation (NYSE:GORO) (the "Company") updated its annual reserve estimates as of December 31, 2018, increasing its proven and probable reserve tonnes at both its Oaxaca Mining Unit and Nevada Mining Unit by a combined total of 18% gold ounces and 14% silver ounces. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, U.S.A. The Company has returned $111 million to its shareholders in monthly dividends 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.
As of December 31, 2018, proven and probable reserves at the Oaxaca Mining Unit totaled 3,077,200 tonnes grading 1.82 grams per tonne (g/t) gold and 127 g/t silver, equating to 180,300 gold ounces and 12,591,300 silver ounces. Proven and probable reserve tonnes included in the December 31, 2018 reserve report increased year-over-year by 23%, gold ounces increased by 26.6% and silver ounces increased by 15.2%. The reserve report also includes significant base metals from the Arista Mine consisting of 11,796 tonnes (26.0 million pounds) of copper grading 0.4%, 44,234 tonnes (97.5 million pounds) of lead grading 1.5% and 132,701 tonnes (292.6 million pounds) of zinc grading 4.5%. Proven and probable tonnes of copper increased year-over-year by 62%, lead tonnes increased by 31%, while zinc tonnes increased by 19%.
As of December 31, 2018, proven and probable reserves at the Nevada Mining Unit's Isabella Pearl Mine totaled 2,934,400 tonnes grading 2.28 g/t gold. Proven and probable reserve tonnes included in the December 31, 2018 reserve report increased year-over-year by 8.9%, gold ounces increased by 11.5% and the gold grade increased 2.7%.
Mine life at the Company's Oaxaca Mining Unit is estimated at four and one-half years, holding the four and one-half year mine life estimate of 2018, but based on the new maximum estimated mill throughput capacity of 2,000 tonnes of ore per day. Proven and probable gold reserves at the Company's Nevada Mining Unit's Isabella Pearl Project grew by 22,200 gold ounces year-over-year. This addition extends the 2018 four-year mine life estimate into the start of a fifth production year at the project. The Company's management is optimistic it can continue to expand the deposit further and/or discover additional neighboring deposits along trend for additional mine life.
"We are very pleased to release this December 31, 2018 reserve report showing significant increases to reserve tonnes and gold ounces at both the Oaxaca and Nevada Mining Units," stated Mr. Barry Devlin, Vice President of Exploration for Gold Resource Corporation. "Both the Arista and Mirador mines in Oaxaca delivered significant increases in tonnes, precious metal ounces and base metal tonnes. We were also pleased to see that modest drilling beyond the edge of the modeled Isabella Pearl pit defined additional tonnes and gold ounces to this project currently in construction. Exploration goals for 2019 include continued step-out and infill drilling at the Arista Mine's Arista and Switchback vein systems, step-out and infill drilling at Mirador's Independencia vein, continued step-out drilling at Nevada's Isabella Pearl modeled pit, and a first drill program at the Scarlet target, located approximately 200 meters to the north west of the Isabella Pearl pit."
"Our exploration team had a great year delivering significant increases to reserve tonnes and gold and silver ounces at both the Oaxaca and Nevada Mining Units," stated Mr. Jason Reid, President and CEO of Gold Resource Corporation. "With global gold ounce increases of 18%, including 26.6% and 11.5% at our Oaxaca and Nevada mining units respectively, coupled with substantial silver ounce and base metal tonne additions, underscore this reserve as being one of the best reserves in the Company's history. The report also marks the sixth consecutive annual reserve report where the Company has increased the proven and probable reserve tonnes in each consecutive year. We have said for over a decade now that the Arista Mine is a part of a very powerful epithermal vein system with tremendous potential. The Isabella Pearl Mine's 2,934,400 tonnes grading now 2.28 grams per tonne gold adds additional critical mass to the Company's production and growth profile. We are nearing construction completion and production of this open-pit heap leach mine. We are not only on track to reach our publicly stated June 2019 production goal, but it is possible we may be selling gold before then."
Below is a summary of the reserve report for December 31, 2018:
GOLD RESOURCE CORPORATION PROVEN AND PROBABLE RESERVES
As of December 31, 2018
Description | Tonnes | Gold g/t |
Silver g/t |
Precious Metal Gold Equivalent g/t |
Gold Ounces |
Silver Ounces |
Precious Metal Gold Equivalent Ounces |
Copper % |
Lead % |
Zinc % |
|||||||||||
Oaxaca Mining Unit | |||||||||||||||||||||
Arista Mine | |||||||||||||||||||||
Proven | 2,669,000 | 1.87 | 112 | 3.35 | 160,500 | 9,574,900 | 287,000 | 0.4 | 1.5 | 4.6 | |||||||||||
Probable | 279,900 | 1.88 | 115 | 3.40 | 17,000 | 1,032,400 | 30,600 | 0.3 | 1.3 | 3.7 | |||||||||||
Arista Mine Total | 2,948,900 | 1.87 | 112 | 3.35 | 177,500 | 10,607,300 | 317,600 | 0.4 | 1.5 | 4.5 | |||||||||||
Mirador Mine | |||||||||||||||||||||
Proven | 107,000 | 0.69 | 495 | 7.23 | 2,400 | 1,704,000 | 24,900 | ||||||||||||||
Probable | 21,300 | 0.62 | 409 | 6.03 | 400 | 280,000 | 4,100 | ||||||||||||||
Mirador Mine Total | 128,300 | 0.68 | 481 | 7.03 | 2,800 | 1,984,000 | 29,000 | ||||||||||||||
Oaxaca Mining Unit Total | 3,077,200 | 1.82 | 127 | 3.50 | 180,300 | 12,591,300 | 346,600 | ||||||||||||||
Nevada Mining Unit | |||||||||||||||||||||
Isabella Pearl Project | |||||||||||||||||||||
Proven | 719,800 | 5.65 | 35 | 6.10 | 130,700 | 801,600 | 141,300 | ||||||||||||||
Probable | 2,214,600 | 1.18 | 5 | 1.25 | 84,100 | 375,100 | 89,000 | ||||||||||||||
Isabella Pearl Project Total | 2,934,400 | 2.28 | 12 | 2.44 | 214,800 | 1,176,700 | 230,300 | ||||||||||||||
Nevada Mining Unit Total | 2,934,400 | 2.28 | 23 | 2.44 | 214,800 | 1,176,700 | 230,300 | ||||||||||||||
Total | 6,011,600 | 2.04 | 71 | 2.99 | 395,100 | 13,768,000 | 576,900 |
Notes to the 2018 P&P reserves:
GOLD RESOURCE CORPORATION MINERALIZED MATERIAL
As of December 31, 2018
Description | Tonnes | Gold g/t |
Silver g/t |
Copper % | Lead % | Zinc % | ||||||||
Arista Mine | 1,843,900 | 1.59 | 110 | 0.3 | 1.2 | 3.7 | ||||||||
Alta Gracia Project | 66,600 | 0.63 | 363 | |||||||||||
Margaritas Project | 26,000 | 0.51 | 260 | |||||||||||
Oaxaca Mining Unit Total | 1,936,500 |
Notes to the 2018 mineralized material:
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 $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. 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