COLORADO SPRINGS, CO--(Marketwired - Jan 9, 2017) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced the acquisition of additional exploration mining claims, which consolidate the mineralized trend of its Isabella Pearl gold development project in Mineral County, Nevada. The claims were acquired from Nevada Select Royalty Inc. ("Nevada Select"), a wholly-owned subsidiary of Ely Gold and Minerals Inc. (TSX VENTURE: ELY) (OTC: ELYGF). 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.
The Company acquired 100% of 153 mining claims from Nevada Select for US$460,000, which included shares of restricted common stock valued at $300,000, and cash of $100,000, plus a one-time advanced royalty cash payment of $60,000. Nevada Select retained a net smelter return royalty (NSR) of 2.5% on the claims. The Company has the right to buy down 0.5% percent of the NSR on the claims for US$500,000.
The newly acquired mining claims brings the total number of mining claims at the project to 494, covering approximately 9,000 acres and which consolidate and eliminates many mine claim gaps along Isabella Pearl's mineralized trend. The claims extend exploration potential to the northwest along a geologic trend with mineralized outcrops and historic mine workings.
Gold Resource Corporation acquired the Isabella Pearl project in August of 2016 from an unrelated party. The project contains third party proven and probable reserves estimated at 2,733,500 tonnes grading 2.18 grams per tonne, which equates to 191,400 gold ounces (report completed by Mine Development Associates, Reno, Nevada). Future production development anticipates two adjacent open pits with the Isabella pit averaging approximately 1 gram per tonne gold with mineral outcropping at the surface, and the Pearl pit averaging approximately 3.7 grams per tonne gold with a higher-grade core averaging nearly 5 grams per tonne gold.
Since the recent acquisition of the Isabella Pearl project, the Company has drilled a water well, retained several engineering firms out of Reno Nevada for additional engineering work, and is finalizing the Company's in-house mine scheduling and capital expenditure requirement estimates for the project. The Company targets the near-term resubmittal of the Environmental Assessment (EA) to the BLM for its mining operations permit.
The Isabella Pearl project is one of three properties the Company controls in south central Nevada's Walker Lane Mineral Belt. The Company's Nevada Mining Unit now includes approximately 22,000 acres of development and exploration lands.
"We are pleased to add to and consolidate a much larger land package along the mineralized trend of our Isabella Pearl project," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "This acquisition provides for additional exploration potential to the northwest targeting open pit heap leach gold deposits, like those at Isabella Pearl."
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 56,566,874 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.
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.