Gold Resource Corporation (NYSE MKT:GORO) identified high grade mineralization from its Alta Gracia property where it is progressing towards 2016 mill feed, located just 16km. northwest of its producing Arista mine within its Oaxaca mining unit.
"The recent drill results from Alta Gracia, Las Margaritas and the northerly extension of the open pit on the Aguila Project continue to define high grade gold and silver mineralization along the San Jose structural fault corridor. With the Company now controlling over 55 kilometers of this largely unexplored prospective corridor, we are very excited with these continued high-grade results underscoring the corridors potential," said Gold Resource Corp’s vice-president of exploration, Barry Devlin.
Hole 4150006 at Alta Gracia's Mirador vein returned 4.01 meters grading 2.52 grams per tonne (g/t) gold and 595 g/t silver. A second Mirador vein intercept in the hanging wall (''HW'') returned 2.12 meters grading 1.74 g/t gold and 493 g/t silver. Previous high grade Mirador vein drill intercepts from January 2015 included 5.06 meters grading 1.53 g/t gold and 1,383 g/t silver (Hole 4140009), and 8.58 meters grading 1.34 g/t gold and 700 g/t silver (Hole 4140013).
A lack of base metals within the Mirador vein gold and silver mineralization suggests Gold Resource will be able to truck any precious metal mineralization to the Aguila mill's agitated leach circuit for processing.
At Alta Gracia, where historic mining took place, the company has already started to negotiate mining agreements with the local community and mine permitting is underway. Gold Resource will speed up efforts to access mineralization thanks to the existing mine development.
By 2016, Gold Resource expects to be ready to mine, truck and process Alta Gracia mineralized material when it expects to secure all relevant community agreements and permits. The Company is moving forward towards production at Alta Gracia based on internal analysis and has not established proven and probable reserves at Alta Gracia.
Gold Resource also intercepted high-grade drill results from its Las Margaritas property located approximately 7 kilometers northwest of the Arista Mine. As at Alta Gracia, drilling at Las Margaritas to date has not produced any appreciable base metals, which also lends its potential precious metal mineralization to be trucked and processed at the Aguila mill through the agitated leach circuit.
Hole 315003 intercepted the Tapada vein returning 2.15 meters grading 1.15 g/t gold and 599 g/t silver. Hole 315004 intercepted 0.68 meters grading 1.65 g/t gold and 1,260 g/t silver. Hole 315002 returned 0.30 meters grading 7.05 g/t gold and 4,010 g/t silver.
The Company said that the high-grade veins at Las Margaritas may widen at depth, similar to what has been defined at the Arista deposit and the associated Switchback discovery where thin veinlets exposed at the surface widen to multiple meter width veins at depth.
Meanwhile, at the Aguila Project, Gold Resource obtained high-grade drill results from targeted mineralized extensions at the historic Aguila open pit, where the company launched commercial production in July 2010, located less than one kilometer from the Aguila mill. Production from the open pit ceased in March 2011 when the Company shifted to mining and processing higher grade polymetallic ore from the Arista underground mine.
Recent drilling at the open pit has targeted feeder veins at depth as well as an expansion of the original manto (flat lying) vein mined in 2009 and 2010, pointing to the presence of more high-grade gold mineralization north/northwest of the historic open pit.
Intercepts include Hole 1150025 which intercepted 3.87 meters grading 8.54 g/t gold and 80 g/t silver, including 1.35 meters grading 17.65 g/t gold and 110 g/t silver. Hole 1150019 intercepted 3.60 meters grading 6.01 g/t gold and 97 g/t silver, including 0.92 meters grading 14.00 g/t gold and 261 g/t silver. Hole 1150010 intercepted 3.12 meters grading 4.59 g/t gold and 224 g/t silver, including 0.79 meters grading 4.94 g/t gold and 502 g/t silver.
Should the company identify additional manto tonnage, it could mine and process this mineralization in either the Aguila mill's flotation or agitated leach circuits. This new intercepts along with the potential mineralized material at the Alta Gracia and/or Las Margaritas properties, the remaining stockpiles of open pit ore and the potential discovery of open pit feeder veins at depth are targeted to provide agitated leach mill feed.
"It is particularly exciting to be working towards near-term production from a second property as we work to permit Alta Gracia. Since we plan to access the mineralization from existing artisanal portals and drifts and truck the material offsite for processing at our Aguila mill, we expect our Alta Gracia footprint and impact of operations to be less than typically encountered in mining operations. As a result, we are optimistic that the Alta Gracia permitting process could be far less arduous and perhaps more timely than other permitting scenarios. Assuming the Company successfully secures its agreements and permits, mineralized material feed from Alta Gracia to our mill's agitated leach circuit is targeted to commence in 2016, and any additional gold and silver production would add to the Company's existing production profile," stated Gold Resource Corporation's CEO and President, Jason Reid
Gold Resource predicts many mineral draw points from its six properties, along its 55 kilometer mineralized trend, to feed both circuits of its Aguila mill. The gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA has returned over $104 million to shareholders in monthly dividends since the start of commercial production in July 1, 2010.
The company says it remains on track to reach its annual production outlook of 80,000 to 90,000 AuEq ounces at a 64.1:1 ratio.