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Gold Resource Corp set to restart production at Don David mine; updates on positive exploration at Switchback zone

Published: 15:25 07 Sep 2021 BST

Gold Resource Corporation -
All-in-sustaining-costs (AISC) for 2021 were unchanged at between US$800 to US$900 per gold-equivalent ounce

Gold Resource Corporation (NYSE-A:GORO, ETR:GIH, FRA:GIH) issued a positive exploration update from its properties in Mexico and also told investors it was restarting production from its Don David gold mine, where activity was ramped down last month due to the coronavirus (COVID-19) pandemic.

"We are commencing the processes to restart production from the mine, build up a run-of-mine stockpile, restart the processing plant and return to 2021 budgeted throughput rates of 1,500 tonnes per day in the next several weeks," said Alberto Reyes, chief operating officer in a statement.

Employees have started to come back to the mine in recent days, each of whom was required to quarantine for three days and then tested for COVID-19. Of the 332 brought back, 329 tested negative and were allowed to access the operations, the group said.

The miner said it had also updated its 2021 annual production guidance in the light of the challenges, such that it now expects payable output for this year of between 21,000 and 23,000 ounces of gold compared to between 19,500 ounces and 21,500 ounces previously.

READ: Gold Resource Corporation curtails activity at Don David Gold mine as coronavirus cases climb

For silver, the guidance moves to 1.1 million to 1.3 million ounces, against forecasts of 1.7 million to 1.8 million previously. All-in-sustaining-costs (AISC) for 2021 were unchanged at between US$800 to US$900 per gold-equivalent ounce.

In a separate statement, Gold Resource said exploration drilling in the second and third quarters of 2021 had confirmed "mineralization below current mining levels in the southeastern Switchback zone, particularly the presence of high-grade gold, silver and zinc values".

This will allow advance development planning at the mine below the current limits.

"Our objectives going forward are to upgrade mineralized material to reserves and optimize mine planning by continuing to test extensions to this zone and to the northwest of the Switchback system, including the Sandy vein as well as to conduct additional infill drilling," said the company.

Highlight drill results from the Switchback zone included 10.11 metres (m) grading 14.95 grams per ton (g/t) gold, 194 g/t silver, 0.35% copper, 0.96% lead, 2.24% zinc in one hole.

Another showed an intercept of 15.26m at a grade of 2.98 g/t gold, 218 g/t silver, 1.33% copper, 2.20% lead and 4.02% zinc.

Gold Resource is a gold and silver producer, developer, and explorer with operations in Oaxaca, Mexico.

Contact the author at giles@proactiveinevestors.com