Gold Resource Corporation (NYSEAMERICAN:GORO) (FRA:GIH), the Mexico-focused miner, revealed exploration drilling had hit further mineralization above areas which are currently being exploited at its Aguila project.
In the drilling underground from two stations at the so-called Don David mine, one in the footwall development ramp of the mine's Switchback vein system and the other 500 meters (m) to the northeast of the Arista vein system, 12 holes confirmed the northern strike and up-dip extensions of the mineralized system.
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Highlight assays included 11.83m at 17.56 grams per ton (g/t) gold, 99 g/t silver, 0.78% copper, 3.73% lead and 6.31% zinc. Another hold hit 9.97m grading 4.43 g/t gold, 88 g/t silver, 0.r35% copper, 0.84% lead and 3.24% zinc.
"I recently had the opportunity to visit the Don David Mine and see first-hand the impressive Switchback and Arista vein systems," said Allen Palmiere, CEO of GORO in a statement.
"These drill results, which I expect will add resources to the mineral inventory, underscore the reasons for my attraction to Gold Resource Corporation and its highly prospective ground package."
He added: "These recent drill results support the company's renewed commitment to invest in Oaxaca, Mexico. Our exploration team continues to do an excellent job working to expand the Don David Mine's high-grade mineralization."
Barry Devlin, VP of exploration added: "Our objective is to continue to test these extensions and expand resources of this growing system, as well as infill drilling to upgrade mineralized material to proven and probable reserves. We are also encouraged by the higher precious and lower base metal grades at this elevation, clearly indicating we are higher in the Switchback vein system."
The company has undergone a shift in focus recently. Having been a company with producing operations in Nevada and Mexico, it spun out its Nevada unit into a separate public company and is focused solely on Mexico.
Allen Palmiere became the new chief executive at Mexico-focused GORO, who is an experienced mining industry executive.
Contact the author at giles@proactiveinvestors.com