Gold Resource Corporation (NYSE:GORO) has announced the succesful expansion of the Arista and Switchback vein systems at its Arista mine in Oaxaca, Mexico.
The company’s progress included the extension of the Switchback vein’s strike length by 100 meters as well as the discovery of a new vein in its Arista vein system.
Drill hole intercepts at Switchback included 23.39 meters of 2.00 grams per tonne (g/t) gold and 200g/t silver; and 9.94 meters of 2.16 g/t gold and 95 g/t silver, which expands Switchback’s strike length by roughly 100 meters.
Elsewhere at the property, a new vein discovered in the Arista vein system hit 2.08 meters of 1.98 g/t gold and 1,583 g/t silver.
Gold Resource’s Arista underground mine is located at the company’s El Aguila project in the southern state of Oaxaca, Mexico.
“Our exploration team continues to do an excellent job expanding the Arista Mine’s multiple vein systems,” said Jason Reid, president and CEO of Gold Resource.
“While the Switchback vein system continues to extend on strike, it is great to see new veins being discovered at the Arista vein system as well,” he added.
In other news, Gold Resource is nearing the completion of its first underground drill station on the north-east side of the Switchback vein system.
The station will offer shorter drill distances and allow Gold Resource’s team to drill untested targets east and north-east of the current Switchback system.
Development of the Arista mine began in 2009, and initial production from the deposits started in March of 2011. The Arista deposit consists of two distinct vein systems- the Arista and the Switchback.
Gold Resource, which has operations in Oaxaca, Mexico and Nevada, has returned US$111mln to its shareholders in monthly dividends since its production efforts began in July of 2010. It offers shareholders the option to convert their cash dividends into physical gold and silver.
The company is maintaining its annual production outlook this year of 27,000 gold ounces and 1.7mln silver ounces, give or take 10%.