Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) has said it ended March 2022 with working capital of $32.4 million, $3.1 million higher than at the end of December 2021, as it benefitted from higher base metals prices and the timing of shipments.
Reporting results for the quarter to March 31, 2022, the Denver-based metals producer and explorer said it sold a total of 8,381 ounces of gold and 265,407 ounces of silver for a gold equivalent total of 11,729 ounces. Additionally, it sold 4,359 tonnes of zinc, 408 tonnes of copper, and 1,639 tonnes of lead.
"Our operations delivered excellent results during the first quarter of 2022,” GRC president and CEO Allen Palmiere said in a statement. “Quarter over quarter processing costs per tonne held steady despite a hyperinflationary environment. Likewise, we reinvested $7.1 million into exploration and infrastructure improvements at the Don David Gold Mine during the quarter.”
READ: Gold Resource Corporation makes organization changes to further derisk its Back Forty project in Michigan
Palmiere noted that another $1.1 million was invested to progress the feasibility study and permitting initiatives at the company’s Back Forty project in Michigan.
“Our investments in both Mexico and Michigan are focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity,” he added.
The company said highlights for the quarter include:
- The Don David Gold Mine earned the prestigious Empresa Socialmente Responsable award from the Mexican Center for Philanthropy for the eighth consecutive year. Awards are given to organizations that demonstrate a commitment to supporting social and environmental protection programs within their local communities.
- During the quarter, the company purchased and processed a thousand tonnes of tailings material from a nearby community to ensure the proper environmental treatment and storage of the material.
- Patrick Frenette was hired as vice president for technical services and Steve Donohue was seconded as vice president for environmental and regulatory affairs (Michigan) to further derisk the successful delivery of the optimized feasibility study and permit applications for the Back Forty project.
- $0.9 million was distributed in shareholder dividends totaling $120.3 million since 2010.
- The company recorded two lost time incidents during the quarter. Both incidents were thoroughly investigated, and the appropriate actions were taken.
Updating investors on its Gold Regrind Project in Mexico, GCR said regrinding of the zinc tailings is expected to increase gold recovery by 6% to 10%. The reground material will be leached to produce dore bars, with completion and commissioning expected in the second quarter of 2022. As of March 31, 2022, the company said a total of $1.6 million has been invested in this project, including $1.1 million in 2021. Another $200,000 is expected to be spent before completion, it added.
After completing the construction of the water filtration plant and dry stack tailings facilities, GCR said work continued to optimize the operations of the filtration plant in the first quarter of 2022, with 15,499 tons of tailings processed through the plant. It said the dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of certain areas of the open-pit mine, and extend the life of the operations. As of March 31, 2022, a total of $14.8 million has been invested in this project, including $14 million through 2021.
Mine development during the quarter included ramps and accesses to different areas of the deposit and exploration development drifts. A total of 1,094 meters of development, at a cost of $2.4 million, was completed during the quarter.
Underground mine development was $1.6 million and exploration development was $0.8 million. The company said it plans to invest a total of $8.5 million to $9.5 million in underground development and an additional $4 million to $4.5 million in exploration development in 2022.
Meanwhile, work on the optimized feasibility study at Back Forty progressed during the quarter, with current initiatives focused on mine planning and process plant design. “Environmental considerations are a key factor in the overall site layout and infrastructure decisions being made,” GCR said. “The feasibility study is expected to be released in the second half of 2022 followed by permit applications being submitted with state agencies in Michigan.”
Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico.
Under the direction of an experienced board and senior leadership team, the company's focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico and to develop the Back Forty Project in Michigan.
Contact the author at stephen.gunnion@proactiveinvestors.com