Gold Resource Corp. (AMEX:GORO) late Thursday reported preliminary results from a resource estimate compiled from drilling data at its underground La Arista vein system at the El Aguila project in Mexico.
Measured and indicated resources, over a 10-year mine life, include
approximately 1.4 million gold equivalent ounces at a 1 gram gold
equivalent cutoff from 4.4 million tonnes grading 2.13 grams per tonne
(g/t) gold, 212 g/t silver, 0.32% copper, 1.23% lead and 4.11% zinc.
The US-based gold producer, which started production from its El
Aguila project in Oaxaca, Mexico in July 2010, has paid 20 straight
monthly dividends since, totaling more than $43 million returned to
In March of last year, the company announced that it had begun the
transition from processing lower grade, open pit ore, to processing
underground ore from the high grade La Arista deposit at El Aguila.
"We are pleased with the preliminary results of this independent
study of our drilling as the analysis confirms the high-grade nature of
our deposit at La Arista," Gold Resource Corp.'s CEO William Reid said.
"This study was effectively performed over the same area as our
original internal analysis, which was used to make our decision to
proceed with construction of the underground mine and to commence
"This independent analysis required application of certain
constraints and restrictions that we believe make it a more conservative
estimate than our original internal estimates.
"Though the preliminary independent estimate and our internal
estimates were formulated using different parameters, each provides its
own important insights while verifying our high-grade vein system."
The El Aguila project is located 120 kilometres southeast of the
capital city of Oaxaca, Mexico and is a significant, newly discovered
high-grade gold and silver system.
Gold Resource said that the preliminary results also appear to
indicate the existence of several additional veins which need to be
explored, preferably by more drilling, crosscutting and drifting and
The company's exploration drilling is now focused on expansion of the
Arista deposit, which remains open at both depth and along strike
extensions. Currently, three underground and two surface drill rigs
continue mine development and exploration of the Arista deposit.
Over a 5-year mine life, measured and indicated resources include
approximately 1.2 million gold equivalent ounces at a 7 gram gold
equivalent cutoff from 2.3 million tonnes grading 3.64 g/t gold, 350 g/t
silver, 0.44% copper, 1.89% lead and 5.9% zinc.
Over a 4 year mine life at La Arista, measured and indicated
resources include approximately 1.05 million gold equivalent ounces at a
9 gram gold equivalent cutoff from 1.7 million tonnes grading 4.49 g/t
gold, 424 g/t silver, 0.5% copper, 2.16% lead and 6.08% zinc.
"The purpose of any estimate is to predict what will be mined.
High-grade vein deposits can be difficult to model and to estimate as
the variations of metal content between drill holes can be great and
therefore may not be fully represented in the model.
"The ultimate sample of course is mining the deposit. What we have
seen from 13 months of actual mining confirms our belief in this
In a conference call, Gold Resource Corp.'s CEO William Reid said the resource estimate was "not yet finalized" and that the
preliminary results would be "very close" to the final results.
"I'm very pleased with the numbers that still show we have a high-grade deposit."
Resource's President Jason Reid added that there was still "potential
for a secondary listing" and the company was evaluating the venue for
the additional listing.
The company said that weighted average grades after 13 months of
production gave a gold equivalent of 0.41 ounces per tonne from 242,014
tonnes grading 3.7 g/t gold, 457 g/t silver, 0.47% copper, 1.42% lead
and 3.07% zinc.
Gold Resource's own 2009 internal estimates gave a gold equivalent of
0.53 ounces per tonne from 2.96 million tonnes grading 6.5 g/t gold,
506 g/t silver, 0.60% copper, 2.24% lead and 6.75% zinc.
"While we know that estimates have their limitations, which may be
amplified for high-grade deposits, the important point is that all these
estimates appear to confirm, and the mining to date substantiates our
high-grade deposit," Reid said.
For the quarter that ended March 31, 2012, the gold producer made
around 30,500 ounces of precious metal gold equivalent from El Aguila,
an increase of 308 percent from the first quarter of 2011.
Gold Resource Corp
also said earlier this month that its first quarter output was in line
with its 2012 outlook for annual production of between 120,000 to
140,000 ounces of gold equivalent.
The NI 43-101 estimate for La Arista was prepared by the Denver
engineering firm of Pincock, Allen & Holt. Full details of the
estimate can be found at: http://www.goldresourcecorp.com