Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) (GRC) said it has confirmed the potential to add higher-grade resources from the Three Sisters and Marena vein systems at its Don David Gold Mine in Oaxaca, Mexico.
The company said the south-eastern deep extension of the Soledad and Sagrario vein systems at the mine is also promising, with recent drill intercepts identifying precious and base metal mineralization within 100 to 120 meters (m) from existing workings.
âThe results of the fourth-quarter 2022 drilling are very promising and have confirmed the ongoing 2023 drill program is on the right track to potentially deliver higher grade resources into the near- and mid-term mine plan,â GRC president and CEO Allen Palmier said in a statement. âWith improved access and ventilation our team can now aggressively continue with the underground infill and expansion drilling to follow up these positive results.â
READ: Gold Resource Corporation updates 2023 guidance
GRC said its 2023 exploration objectives are to identify and define mineral resources from the Three Sisters, South Soledad and Sagrario and Marena vein systems. It will also work to upgrade inferred resources by continuing to conduct infill drilling.
Three Sisters vein system
GRC noted that the Three Sisters vein system is located between the Arista and Switchback vein systems. Drilling is currently underway, in the upper parts of Three Sisters, from recently built drill stations on Level 3 in the northwest Switchback system.
The company said the Three Sisters vein system continues to remain open to the northwest up-dip as well as at depth. Most notably, intercepts in Hole No. 522055 are significantly outside the current resource shell and were key in confirming the direction of the 2023 drill program.
The 2023 drilling program will progress from Level 3 while 200m of additional drift development continues to the northwest where phase 2 drilling will take place in the second half of the year.
Highlights from holes drilled in 2022 at Three Sisters include:
- Hole No. 522004 (Sandy 2):
- 3.33m @ 2.20 grams per ton (g/t) gold (Au), 874 g/t silver (Ag), 0.65% copper (Cu), 1.85% lead (Pb), 2.99% zinc (Zn);
- Includes: 1.41m @ 4.60 g/t Au, 1820 g/t Ag, 1.32% Cu, 4.21% Pb, 6.79% Zn.
- Hole No. 522053 (Sandy 1):
- 3.30m @ 0.25 g/t Au, 41 g/t Ag, 0.07% Cu, 0.60% Pb, 3.59% Zn;
- Includes: 1.07m @ 0.75 g/t Au, 20 g/t Ag, 0.18% Cu, 0.94% Pb, 4.29% Zn.
- Hole No. 522055 (Sandy 2):
- 7.13m @ 1.54 g/t Au, 175 g/t Ag, 0.21% Cu, 1.12% Pb, 2.17 % Zn;
- Includes: 1.30m @ 2.88 g/t Au, 484 g/t Ag, 0.51 % Cu, 3.02% Pb, 5.82% Zn.
Marena vein system
GRC said exploration drilling during the fourth quarter of 2022, from drill stations at Level 20 located in the footwall of the Switchback vein system, successfully intercepted the Marena vein system along strike to the north-west, approximately 100m below the existing Arista mine workings.
Infill drilling in the growing Marena vein system continues to show strength, structure and economic potential depth beyond areas previously modelled and outside the current resource shell.
During 2023, the company said exploration drilling will continue testing the down-dip and north-western extensions of mineralization of the Marena system (Arista mine) in conjunction with the necessary exploration development.
Highlights from Marena drill results include:
- Hole No. 522008:
- 5.42m @ 0.15 g/t Au, 117 g/t Ag, 0.04% Cu, 3.06% Pb, 8.78% Zn (Marena HW split).
- 4.98m @ 0.02 g/t Au, 177 g/t Ag, 0.02% Cu, 3.05% Pb, 9.10% Zn (Marena);
- Includes: 1.22m @ 0.03 g/t Au, 488 g/t Ag, 0.04% Cu, 9.70% Pb, 18.45% Zn.
- Hole No. 522051:
- 3.43m @ 0.04 g/t Au, 37 g/t Ag, 0.01% Cu, 0.27% Pb, 5.8% Zn;
- Includes: 1.40m @ 0.01 g/t Au, 77 g/t Ag, 0.02% Cu, 0.48% Pb, 12.25% Zn.
South Soledad & Sagrario vein systems
GRC said infill drilling during the fourth quarter of 2022 successfully confirmed the continuity and strength of the South Soledad and Sagrario vein systems along strike to the south-east and down-dip from the current Switchback deposit resource shell, giving strong indications there is potential to discover and expand additional polymetallic mineralization plunging steeply in a south-easterly direction.
Infill drilling is currently ongoing in this zone which is pending incorporation into the 2023 resource estimate, the company added.
During the second quarter of 2023, GRC said exploration drill plans include step-out holes at 100-meter increments along the South Soledad and Sagrario veins with expectations to add resources.
Highlights of 4Q 2022 infill drill results for the South Soledad and Sagrario veins include:
- Hole No. 522040 (Sagrario & South Soledad):
- 4.27m @ 7.93 g/t Au, 111 g/t Ag, 1.25% Cu, 3.85% Pb, 15.19% Zn (Sagrario);
- Includes: 1.47m @ 20.90 g/t Au, 173 g/t Ag, 2.10% Cu, 8.15% Pb, 24.50% Zn.
- 1.92m @ 1.81 g/t Au, 40 g/t Ag, 1.09% Cu, 5.50% Pb, 12.31% Zn (Soledad);
- Includes: 1.29m @ 2.65 g/t Au, 47 g/t Ag, 1.24% Cu, 7.41% Pb, 17.20% Zn.
- Hole No. 522043 (Sagrario & South Soledad):
- 5.50m @ 2.10 g/t Au, 121 g/t Ag, 0.43% Cu, 1.63% Pb, 7.21% Zn (Sagrario);
- Includes: 0.90m @ 12.25 g/t Au, 148 g/t Ag, 0.92% Cu, 5.74% Pb, 13.50% Zn.
- 3.99m @ 1.83 g/t Au, 19 g/t Ag, 0.69% Cu, 0.46% Pb, 1.79% Zn (Soledad);
- Includes: 2.14m @ 2.35g/t Au, 24 g/t Ag, 0.86% Cu, 0.67% Pb, 2.45% Zn.
GRC said it will release its unaudited 2022 results and file its updated Technical Summary Report on Form 8-K on March 2, 2023. Its 2022 Form 10-K will be filed at a future date, no later than March 15, 2023, once its External Audit Firm, BDO USA, LLP, completes its audit procedures.
It plans to host a conference call on Friday, March 3, 2023, at 10am ET. To join the conference via webcast, please click on this link.
Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centred on the Don David gold mine in Oaxaca, Mexico.
Contact the author at stephen.gunnion@proactiveinvestors.com