logo-loader

Gold Resource’s annual reserve report shows sharp increase in global gold and silver ounces

Last updated: 01:20 27 Feb 2019 AEDT, First published: 01:05 27 Feb 2019 AEDT

Gold ore being melted
Gold Resource is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, in the US

Gold Resource Corporation (NYSEAMERICAN:GORO) updated its annual reserve estimates, increasing its proven and probable reserve tonnes at its mines in Oaxaca, Mexico and Nevada in the US by a combined total of 18% gold ounces and 14% silver ounces.

As of December 31, 2018, proven and probable reserves at the Oaxaca mine totaled 3,077,200 tonnes grading 1.82 grams per tonne gold, and 127 grams per tonne silver, equating to 180,300 gold ounces and 12,591,300 silver ounces.

READ: Gold Resource meets 2018 gold and silver production targets as Mexico mines deliver ‘solid results’

Proven and probable reserve tonnes included in the reserve report increased year over year by 23%, while gold ounces expanded by 26.6% and silver ounces spiked by 15.2%. 

The reserve report also includes significant base metals from the Arista Mine consisting of 11,796 tonnes of copper, 44,234 tonnes of lead grading 1.5% and 132,701 tonnes of zinc grading 4.5%. 

The increase in base-metal production was directly related to the development and mining of the lower levels of the Switchback vein system at its Arista mine in Oaxaca. As operations move to higher elevations levels, precious-metal grades are expected to increase while base metal grades should decrease.

Proven and probable reserves at the Nevada Mining unit's Isabella Pearl Mine totaled 2,934,400 tonnes grading 2.28 grams per tonne gold. Proven and probable reserve tonnes included in the reserve report increased year over year by 8.9%, gold ounces increased by 11.5% and the gold grade increased 2.7%.

READ: Gold Resource touts seventh consecutive year of profitability; updates mineral reserve at Oaxaca once again

Proven and probable gold reserves at the Isabella Pearl project grew by 22,200 gold from a year earlier. The company said the addition extended the four-year mine life estimate into the start of a fifth production year. The miner said it is optimistic it can continue to expand the deposit further 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," said Barry Devlin, vice president of exploration at Gold Resource. "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.”

Devlin dived deeper into exploration goals for 2019, saying they included 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 200 meters to the northwest of the Isabella Pearl pit.

"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,” said Gold Resource Corp CEO Jason Reid.  “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.”

Reid said the miner was nearing construction completion and production of its 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," said Reid.

The miner also said it has returned $111 million to its shareholders in monthly dividends since commercial production started in July 2010. The company offers shareholders the option to convert cash dividends into physical gold and silver and take delivery.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter@UttaraProactive 

Gold Resource CEO confident the Isabella Pearl project in Nevada will more...

Gold Resource Corp (NYSE American: GORO) CEO Jason Reid tells Proactive Investors the gold mining company expects to increase gold production by more than 100% after securing final permits for its Isabella Pearl open pit heap leach gold project in Mineral County, Nevada. Reid says close...

on 12/6/18