Shares in Gold Resource Corporation (NYSE: GORO) advanced over 3% as it continues to expand the switchback vein system at its Arista mine at its Aguila project in Oaxaca, Mexico.
"Thus far during 2017, our drill programs have more than doubled the Switchback vein system's strike length to over 625 meters," Jason Reid, president and chief executive of Gold Resource Corporation, said.
And he added that the vein system could grow as large or even larger than the Arista system.
"Ongoing Switchback mine development is progressing nicely as we look forward to our first bulk tonnage stoping of Switchback near year-end or the first quarter of 2018."
The new drill assays extend known mineralization at Switchback to the southeast by around 50 metres on strike and elevation, hitting multiple veins including 2.33 meters of 6.16 grams per tonne (g/t) gold, 453 g/t silver and 9.29% zinc.
That was within a wider intercept of 5.08 meters of 3.20 g/t gold and 261 g/t silver and 11.85% zinc, the firm noted.
The Switchback system's total strike length now exceeds 625 meters and remains open in all directions, the company told investors.
GORO is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.
It's been busy recently. Last week shares rose as it reported high grades in its latest drilling at its Mesa property in Nevada.
The fourth phase RC (reverse circulation) campaign followed-up on two targets previously tested at the site, with multiple holes hitting near surface mineralization.
Highlights include 6.10 metres (m) of 1.20 g/t (grams per ton) gold, which was 10.67m downhole, including 1.52m of 3.13 g/t gold, 13.72 metres down.
Gold Mesa has the potential to be a high-grade gold open pit, or multiple open pits, with surface and near surface mineralization.
A phase five drill program is currently underway in a bid to expand known high-grade gold zones and test new targets.
Today, GORO shares gained 3.24% to US$4.14 each.