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Tuesday, 5 February 2013
Gold Resource Corp bolsters board with new addition, shares up
Gold Resource Corp (NYSE MKT: GORO) has boosted its board of directors to six members, with the addition of Dr. Gary Huber, sending shares higher.
Shares of the gold producer rose more than 1.2% to $13.68 this afternoon.
Dr. Huber brings more than 35 years of diversified natural resource experience to the board, having been the president and CEO of Neutron Energy, a private uranium development company, and a founder and CFO of Canyon Resources Corp.
His experience in the mining business includes operations management, business development, merger and acquisitions, financings, strategic planning, and minerals marketing, whichGold Resource Corp says brings "additional depth" to its board.
“We are very pleased to welcome Dr. Huber to the Board of Directors,” said Gold Resource Corporation’s president, Jason Reid. “His tremendous industry experience adds greatly to the board and we look forward to working together as the company continues to grow, generate cash and distribute meaningful dividends for the benefit of shareholders.”
In January, the gold producer posted its preliminary production results for last year, achieving record full year output for 2012 that rose 37% over the prior year.
For 2012, the low-cost gold and silver producer, with operations in Oaxaca, Mexico, produced 90,432 ounces of gold equivalent, up 37% from 2011. The latest figure included 23,783 ounces in the fourth quarter, up from 22,336 ounces in the third quarter.
Looking ahead, the company set its production range for 2013 between 80,000 and 100,000 ounces of gold equivalent, which at the high end would be an increase of around 11% over 2012 figures.
Also in January, the company revealed 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 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 mill. 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.
The company, which has returned over $72 million to shareholders in monthly dividends since declaring commercial production in July 2010, said full financial results for the fourth quarter and fiscal year 2012 will be available in its annual report.