Gold Resource Corp (NYSE MKT:GORO) said it has intersected multiple high grade, parallel veins at the Switchback discovery at its El Aguila project in Mexico.
Of the highlights from the latest infill drill results, the Oaxaca, Mexico-focused precious metals producer said it returned 6.12 metres of 5.53 grams per tonne (g/t) gold and 76 g/t silver as well as 19.34 metres of 2.56 g/t gold and 129 g/t silver, including 1.71 metres grading 13.45 g/t gold and 860 g/t silver.
The polymetallic intercepts also included significant amounts of copper, lead and zinc. The company said base metals have the potential to offset precious metal production costs by creating by-product credits when sold to Gold Resource's concentrate purchaser.
The Switchback discovery was made in June 2013, and is located about 500 metres northeast of the company's producing La Arista underground mine. The company decided last year to drift about 250 metres towards the Switchback mineralization to shorten the drill distance to the mineralized area, providing better angles to intercept the veins.
"These multiple high-grade vein intercepts at Switchback are reminiscent of early drill results at the company's currently producing Arista deposit," said president and chief executive officer, Jason Reid.
"The latest Switchback results confirm multiple en echelon high-grade polymetallic veins similar to those being mined 500 meters away at our Arista deposit.
"We not only look forward to additional Switchback drill results, but towards a future Switchback production decision. We believe the Switchback discovery, coupled with our Arista deposit, speaks to the growing potential of our high-grade epithermal vein system."
The gold and silver miner said its immediate plan is to continue infill drilling at Switchback to further delineate the vein structures, with the aim of moving to a development decision in the near term.
Since commercial production started at La Arista in July 2010, Gold Resource Corp has returned more than $102 million to shareholders in monthly dividends. It also holds exploration properties in Nevada, in the US.
The company declared late Monday its monthly dividend of 1 cent per share for January, payable to shareholders on February 23.