Gold Resource boosts land position in Oaxaca, Mexico

Gold Resource Corp (AMEX:GORO) said Monday that it has added a sixth potential high grade asset to its Oaxaca, Mexico holdings.

The property consists of several new claims the company staked, including El Chamizo, which consists of 26,386 hectares connecting its Alta Gracia property to the El Rey asset -  effectively consolidating 48 kilometers along strike of the north 70 west regional structural corridor, it said. 

With this new acquisition, Gold Resource Corp has a 100% interest in 60,998 hectares in Oaxaca, Mexico. 

The company's Oaxaca mining unit now contains the El Aguila, El Rey, Alta Gracia, Las Margaritas, El Chamizo and Solaga properties.

Gold Resource said it also staked a 2,000 hectare claim on the southeast end of the corridor, which increases the size of the Aguila project, home to the large, high grade La Arista polymetallic deposit. 

“After much work and patience, we have methodically consolidated a dominant land position now connecting five properties on what we believe will become one of the most important mineralized structural corridors in southern Mexico,” said president Jason Reid.

"The new property Chamizo, located between Alta Gracia and El Rey, is a major increase to our land holdings along what we believe is a highly mineralized corridor.”   

The acquisition is in line with the company's strategy to have multiple high grade properties feeding ore to its Aguila mill.

Gold Resource Corp began commercial production from its El Aguila project in July of last year.

In March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila - well ahead of the original mid-year target.

La Arista is the company's largest deposit discovered to date at the project, and as Gold Resource continues to ramp up and improve operations, the deposit is expected to result in higher average grade ore, lower cash costs and greater output levels.