Gold Resource Corp (NYSE:GORO) Monday announced phase two drill highlights from its Mina Gold property in Nevada, which revealed high-grade gold.
Mina Gold’s near surface high-grade gold intercepts included 15.24 meters (m) of 3.34 grams per tonne (g/t) of gold from surface and 12.19m of 2.98 g/t gold from 6.10 m downhole.
“Phase two drill results from the Mina Gold property continue to validate the company's phase one and historic near surface, high-grade gold results," Barry Devlin, vice-president of exploration, told investors.
"It is encouraging to see the continued definition of high-grade gold associated with thicker zones at Mina," he added.
Mina Gold covers an area of roughly 825 acres consisting of 43 unpatented claims and five patented claims in central Nevada’s Walker Lane Mineral belt.
Gold Resource is currently developing a Phase three drill campaign to target and expand its mineralized zones at the property.
The firm also revealed today it was terminating its option to purchase the Gold Mesa property in Nevada and will instead focus its resources on its four Nevada Mining unit properties that are 100% company-owned.
“It is often difficult to walk away from a property with high-grade gold, but our analysis of the expansion potential of the known mineralization at Gold Mesa makes the decision for us,” explained CEO Jason Reid in a statement. “We feel we have more prospective properties in our portfolio to allocate capital towards.”
The company’s Nevada mining unit consists of its flagship Isabella Pearl project, which is set to see its first gold production by the second quarter of next year and the Mina Gold, East Camp Douglas and County Line properties, which are in various stages of exploration.
The Nevada unit covers more than 25,000 acres in south central Nevada’s Walker Lane Mineral belt.
In a separate statement Monday, Gold Resource Corporation reported an array of preliminary productions results for its fiscal second quarter.
Over the three months until the close of June, the Colorado Springs, Colorado-based company produced 5,806 ounces of gold, 593,955 ounces of silver as well as 387 tonnes of copper, 1,540 tonnes of lead and 4,473 tonnes of zinc.
Looking at the first half of the year, the results are even more robust. In the first six months, Gold Resource produced 12,453 ounces of gold, 1,019,839 ounces of silver, 772 tonnes of copper, 3,155 tonnes of lead and 9,266 tonnes of zinc.
The company is maintaining its annual production outlook this year of 27,000 gold ounces and 1.7mln silver ounces, give or take 10%.
Gold Resource maintains operations in Oaxaca, Mexico as well as Nevada. It targets low capital expenditure projects that have the potential for generating high returns on capital.
Gold Resource has returned US$111mln to its shareholders in monthly dividends since it began production on July 1, 2010. It also offers shareholders the option to convert cash dividends into physical gold and silver.
Shares added over 4% to US$7.17.