Gold Resource Corporation (NYSE MKT: GORO) revealed today high gold and silver grades at its Las Margaritas property in Mexico, saying the results confirmed mineralization at depth and bolstered the company's confidence in the mineralized trend.
The company intercepted 2.85 metres of 27.9 grams per tonne (g/t) gold and 2,600 g/t silver in hole 312011, as well as 0.69 metres of 1.76 g/t gold and 1,100 g/t silver.
The gold and silver producer's program at Las Margaritas is intended to test various structural and mineralized exploration targets. Rock chip samples from the area were as high as 62.9 g/t gold and 4,150 g/t silver.
The hole reported today is one of several reconnaissance drill holes from the ongoing drill campaign at Las Margaritas, the company said.
Gold Resource Corp, with operations in the southern state of Oaxaca, Mexico, has returned more than $69 million to shareholders in monthly dividends since declaring commercial production from its El Aguila mine in the summer of 2010.
“These initial high-grade gold and silver drill intercepts at Las Margaritas not only confirm mineralization at depth, but bolster our belief we are exploring a powerful and extensive mineralized trend,” said the company president, Jason Reid.
At one end of the company's mineralized trend, there is the producing La Arista deposit located on its El Aguila project, and 48 kilometres away along the trend, the miner discovered a high grade gold vein system at its El Rey property.
Along the same structural corridor, near the middle of the trend, it also drilled mineralized structures at its Alta Gracia property during its initial drill program.
"With these new high-grade drill intercepts at Las Margaritas, the mineralized structural corridor looks increasingly prospective for additional deposit discovery," continued Reid.
"We have the dominant land position along this extensive mineralized corridor and are excited with our exploration potential targeting additional mineralization for future production.”
The company said it believes it may be the first to ever drill the prospective high grade Las Margaritas property, which historically was mined on a small scale prior to the 1910 Mexican Revolution, and has mostly remained dormant since.
Gold Resource Corp added the property to its portfolio as it consolidated land along the structural corridor in this region.
As with all six of its Oaxaca, Mexico properties, the company is targeting additional deposit discoveries at Las Margaritas where high-grade ore could be trucked to its strategically located mill at its El Aguila project.
Its strategy is to bring multiple properties within trucking distance online to feed ore to the mill, keeping capital costs to a minimum and maximizing head grades processed through the mil.
The company said the Las Margaritas gold and silver mineralization could be processed through El Aguila's agitated leach circuit, which would add to its current production from the flotation circuit.
Shares in Gold Resource rose more than 1 per cent this morning, to $14.26 on the NYSE Amex Exchange.
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