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Wednesday, 17 April 2013
Gold Resource Corp says Q1 output in line with targets
Gold Resource Corp (NYSE MKT:GORO) has reported its first quarter preliminary production results, which it says were in line with the company's targets.
The gold producer, with operations in the southern state of Oaxaca, Mexico, told investors late Tuesday that preliminary output for the quarter that ended March 31 was 22,300 ounces of gold equivalent.
This compares to gold equivalent production of 30,528 ounces in the year-ago period. In the fourth quarter, production from its El Aguila project totaled 23,782 ounces of gold equivalent.
Last year, the company completed its first full year of underground mining in the La Arista deposit, dealing with a number of challenges including greater than expected water flows, and unexpected carbon dioxide gas. Still, it reported a 37% increase in mill production in 2012 over the previous year's mill output.
The plan for 2013 is to position the project to produce 1,500 tonnes per day by the end of the year, with the company saying that work on this has progressed. The concrete foundation for the new ball mill is complete, foundations for the new thickener surge tanks are basically complete and the new flotation cells have been ordered, it said in the release.
"We are pleased with production results which were in line with our targets," said company president Jason Reid in a statement on Tuesday.
"Mine development advanced well, exploration during the quarter further defined new mineralized areas outside of the Baja/Arista veins in the Arista Deposit, including Splay #5, and the company acquired new prospective land concessions, further consolidating our North 70 West mineralized structural corridor."
The company stood by its outlook for the full year, for production of between 80,000 to 100,000 ounces of gold equivalent.
Gold Resource Corp has returned over $78 million to shareholders in monthly dividends since declaring commercial production at El Aguila in July 2010, also offering shareholders the option to convert their cash dividends into physical gold and silver.
Full financial results for the first quarter will be available at the time the company files its quarterly report with the Securities and Exchange Commission, it said on Tuesday.