SOURCE: Gold Resource Corporation

Gold Resource Corporation

January 18, 2017 08:00 ET

Gold Resource Corporation Acquires East Camp Douglas Gold Property in Mineral County, Nevada

COLORADO SPRINGS, CO--(Marketwired - Jan 18, 2017) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced the purchase of the East Camp Douglas gold property located in Mineral County, Nevada from Diversified Inholdings, LLC. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $109 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

East Camp Douglas acquisition highlights include:

  • District scale land package in prolific Walker Lane Mineral Belt
  • 277 unpatented claims, 12 patented claims
  • Claims comprise approximately 5,300 acres
  • Multi-gram high-grade gold drill intercepts and surface samples
  • Potential open pit heap leach operations
  • Mining friendly jurisdiction, Nevada, U.S.A
  • 100% acquisition
  • No bank or broker transaction fees

East Camp Douglas Third Party Drill Highlights Include (g/t = gram per tonne):

  • 22.86 meters of 13.55 g/t gold (from 4.6 meters down hole)
  • 13.72 meters of 2.88 g/t gold (from 13.7 meters down hole)
  • 18.29 meters of 2.42 g/t gold
  • 23.86 meters of 1.99 g/t gold (from surface) 
  • 23.47 meters of 1.72 g/t gold
  • 27.40 meters of 1.62 g/t gold
  • 9.10 meters of 1.00 g/t gold (from surface)
  • 7.62 meters of 2.86 g/t gold (from 3.0 meters downhole)

The East Camp Douglas property covers an area of approximately 5,300 acres consisting of 277 unpatented claims, 12 patented claims and an additional 200 acres of fee lands in Mineral County, Nevada. The property is located approximately 14 miles southeast of the Company's Gold Mesa property (see map) and will be added to the Company's Nevada Mining Unit. Gold Resource Corporation's Nevada Mining Unit now controls approximately 27,300 acres of development and exploration lands in south central Nevada's Walker Lane Mineral Belt.

The Company acquired 100% of the East Camp Douglas property from Diversified Inholdings, LLC for US$2,000,000, which consisted of shares of restricted common stock valued at US$1,000,000 and cash of US$1,000,000. Diversified Inholdings, LLC retained a net smelter return royalty (NSR) of 3% on unpatented claims and fee lands and 1% on patented claims. The patented claims have an existing 2% NSR to an unrelated third party. 

East Camp Douglas is situated along strong structural controls and alignments within the Walker Lane mineral belt, which hosts numerous significant epithermal gold and silver deposits such as Paradise Peak, Borealis, Bodie, Goldfield and Tonopah. Precious metal epithermal mineralization at East Camp Douglas occurs as both widespread high sulfidation alteration areas and low sulfidation veins. 

Gold was first discovered at East Camp Douglas in low sulfidation quartz-adularia veins in 1893. Gold mining flourished in the district until 1902, with intermittent production through the 1980's. Historic district gold production is estimated at approximately 100,000 ounces. Modern exploration (post 1960's) by several mining and exploration companies has established modest gold resources in five separate areas in the district, with over 3,000 meters of drill core and a large exploration database. Company management believes this large property has numerous untested targets and the high-grade drill results warrant an extensive exploration program. 

Historic drill results from East Camp Douglas include (results provided by Diversified Inholdings, LLC and several third party exploration companies):

 
HISTORIC EAST CAMP DOUGLAS DRILL HIGHLIGHTS*
Hole #       Interval Meters   Au   From
g/t   Meters
CD03-02       13.72   2.88   13.7 m
ECD12-1       9.1   1   from surface
ECD12-01       23.47   1.72    
    Incl.   15.85   2.42    
ECD12-03       7.62   1.04    
12-006       1.52   51    
ECD12-012       15.24   1.25   47.0 m
Incl.   6.1   2    
7R       18.8   1.91    
    27.4   1.62    
35R       23.86   1.99   from surface
40R       7.62   2.86   3.0 m
47R       22.86   13.55   4.6 m
48R       4.57   4.39    
HS1B       4.57   1.39    
    18.29   2.42    
*All results provided by Diversified Inholdings LLC and third party exploration companies
 

Mr. Barry Devlin, Vice President of Exploration, stated, "We have been watching the East Camp Douglas property for some time now and are excited to have acquired 100% interest in this large prospective exploration property. This property represents a district-scale exploration opportunity with the potential to host a deposit, similar to the neighboring Paradise Peak deposit, which produced over a million ounces of gold."

"East Camp Douglas adds additional critical mass to the exploration potential of our exciting Nevada Mining Unit, solidifying a dominant land position in the area," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "In less than 14 months we have assembled four exciting properties in Nevada's Walker Lane Mineral Belt, all of which have associated high-grade gold drill results many of which begin at or near the surface. Our pipeline of properties range from project development stage, to deposit delineation drilling stage, to target rich exploration drill ready stage. We are targeting production from our Isabella Pearl development project at the earliest possible point in time. We continue our delineation drilling at our Gold Mesa property to move it towards a resource and production decision, and we just commenced our first drill program at our Mina Gold property. With the acquisition of East Camp Douglas, we have secured a district scale target rich property with additional potential for a large-scale gold discovery. All of our properties have high-grade gold open pit heap leach potential, which should provide additional longevity of future operations and complement production from our operating underground mines in Mexico. I believe East Camp Douglas will be an important part of our Nevada Mining Unit's exploration potential over the coming years, and we feel fortunate to have secured this very large, exciting, high-grade gold asset."

About GRC:

Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has 56,839,823 shares outstanding, zero warrants, zero debt and has returned over $109 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.

Cautionary Statements:

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-K filed with the SEC.

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