SOURCE: Gold Resource Corporation

Gold Resource Corporation

May 31, 2016 17:03 ET

Gold Resource Corporation Continues Returning High-Grade Drill Intercepts at Switchback Including 9.50 Meters of 8.85 G/T Gold, 669 G/T Silver, 3.15 Meters of 15.79 G/T Gold, 110 G/T Silver and 13.23 Meters of 4.03 G/T Gold, 114 G/T Silver

COLORADO SPRINGS, CO--(Marketwired - May 31, 2016) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced additional Switchback drill results from its Aguila Project's Arista Mine. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned $108 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.

Each Switchback drill hole intercepted multiple parallel veins (see full table below).
Drill Highlights include (m=meters, g/t = grams per tonne):

                     
                     
Hole # 516111                    
  9.50m of   8.85g/t gold,   669g/t silver,   0.67% copper,   1.86% lead,   6.83% zinc
incl. 0.95m of   31.40g/t gold,   5,420g/t silver,   1.35% copper,   0.93% lead,   2.32% zinc
incl. 2.40m of   7.39g/t gold,   288g/t silver,   0.41% copper,   1.34% lead,   15.19% zinc
incl. 2.43m of   10.36g/t gold,   64g/t silver,   0.90% copper,   1.65% lead,   3.59% zinc
  18.27m of   2.23g/t gold,   191g/t silver,   0.59% copper,   2.64% lead,   6.18% zinc
  3.29m of   5.92g/t gold,   554g/t silver,   0.53% copper,   0.86% lead,   3.33% zinc
                       
Hole # 516114                    
  2.40m of   12.21g/t gold,   53g/t silver,   0.99% copper,   3.74% lead,   8.51% zinc
incl. 0.90m of   24.30g/t gold,   97g/t silver,   1.11% copper,   8.57% lead,   14.60% zinc
  4.96m of   4.42g/t gold,   22g/t silver,   0.62% copper,   0.60% lead,   3.48% zinc
  13.23m of   4.03g/t gold,   114g/t silver,   0.82% copper,   1.60% lead,   2.79% zinc
incl. 3.15m of   15.79g/t gold,   110g/t silver,   1.53% copper,   4.08% lead,   7.11% zinc
                       
Hole # 516115                    
  11.09m of   2.97g/t gold,   147g/t silver,   0.93% copper,   2.67% lead,   4.29% zinc
incl. 0.52m of   15.40g/t gold,   120g/t silver,   1.37% copper,   2.37% lead,   2.29% zinc
incl. 2.89m of   4.62g/t gold,   184g/t silver,   2.08% copper,   3.78% lead,   4.10% zinc
incl. 0.55m of   14.40g/t gold,   39g/t silver,   0.85% copper,   1.30% lead,   11.20% zinc
incl. 0.68m of   0.11g/t gold,   830g/t silver,   0.33% copper,   11.30% lead,   11.30% zinc
                       
                       

Hole 516111 was an infill intercepting four parallel veins, including the Silvia vein which returned 9.50 meters grading 8.85 g/t gold, 669 g/t silver, 0.67% copper, 1.86% lead and 6.83% zinc; including 0.95 meters grading 31.40 g/t gold, 5,420 g/t silver, 1.35% copper, 0.93% lead and 2.32% zinc. Hole 516111 also intercepted the Soledad vein returning 18.27 meters grading 2.23 g/t gold, 191 g/t silver, 0.59% copper, 2.64% lead and 6.18% zinc; including 3.29 meters grading 5.92 g/t gold, 554 g/t silver, 0.53% copper, 0.86% lead and 3.33% zinc.

Hole 516114 was an infill intercepting four parallel veins, including the Soledad vein which returned 4.96 meters grading 4.42 g/t gold, 22 g/t silver, 0.62% copper, 0.60% lead and 3.48% zinc. The Sagrario vein returned 13.23 meters grading 4.03 g/t gold, 114 g/t silver, 0.82% copper, 1.60% lead and 2.79% zinc; including 3.15 meters grading 15.79 g/t gold, 110 g/t silver, 1.53% copper, 4.08% lead and 7.11% zinc. An unnamed vein returned 2.40 meters grading 12.21 g/t gold, 53 g/t silver, 0.99% copper, 3.74% lead and 8.51% zinc.

Hole 516115 was a step-out intercepting two parallel veins, including the Sagrario vein which returned 11.09 meters grading 2.97 g/t gold, 147 g/t silver, 0.93% copper, 2.67% lead and 4.29% zinc; including 0.52 meters grading 15.40 g/t gold, 120 g/t silver, 1.37% copper, 2.37% lead and 2.29% zinc.

 
 
 
Hole # Angle Vein   From Interval Au Ag Cu Pb Zn
deg   Meters Meters g/t g/t % % %
516111 -40 Susanna   90.04 1.13 0.64 94 0.36 0.30 5.37
Silvia   122.18 9.50 8.85 669 0.67 1.86 6.83
Incl. 122.18 0.62 0.83 166 1.09 0.57 1.47
Incl. 122.80 0.95 31.40 5,420 1.35 0.93 2.32
Incl. 123.75 2.40 7.39 288 0.41 1.34 15.19
Incl. 126.15 2.38 4.37 107 0.51 3.86 6.84
Incl. 129.25 2.43 10.36 64 0.90 1.65 3.59
Vein   132.76 0.54 1.58 40 0.63 3.66 6.36
Vein   135.93 1.04 5.35 102 0.61 10.60 9.21
Soledad   177.33 18.27 2.23 191 0.59 2.64 6.18
Incl. 177.33 10.97 1.49 110 0.67 3.87 8.62
Incl. 190.29 3.29 5.92 554 0.53 0.86 3.33
Incl. 194.58 0.59 6.26 447 0.70 2.33 5.89
516113 -46 Silvia   118.07 3.95 0.20 122 0.63 1.74 3.22
Incl. 120.96 0.84 0.13 208 0.69 3.15 6.16
Vein   130.46 0.96 0.85 477 0.11 0.45 0.25
Soledad   207.56 2.85 1.82 68 0.63 2.50 3.91
Incl. 209.38 1.03 3.38 129 0.89 4.30 6.39
Vein   215.81 0.98 0.13 483 0.49 0.82 1.53
516114 -37 Silvia   111.09 7.28 0.41 63 0.42 0.84 6.67
Incl. 112.68 0.79 0.12 54 0.70 2.10 14.20
Incl. 115.66 0.70 0.53 83 0.35 1.09 10.25
Vein   223.00 2.40 12.21 53 0.99 3.74 8.51
Incl. 224.00 0.90 24.30 97 1.11 8.57 14.60
Soledad   240.43 4.96 4.42 22 0.62 0.60 3.48
    Incl. 241.30 0.70 11.40 48 1.34 2.41 10.80
    Incl. 243.85 0.67 14.45 53 1.73 1.00 6.99
    Sagrario   250.00 13.23 4.03 114 0.82 1.60 2.79
    Incl. 250.00 3.15 15.79 110 1.53 4.08 7.11
    Incl. 258.03 3.41 0.46 269 0.49 0.52 1.21
516115 -33 Soledad   215.56 5.50 1.66 94 0.72 3.21 4.57
Incl. 215.56 0.97 2.83 35 0.51 0.93 4.38
Incl. 218.60 1.69 2.64 233 1.25 9.04 5.91
Incl. 220.79 0.27 0.03 124 0.06 0.93 11.25
Sagrario   224.69 11.09 2.97 147 0.93 2.67 4.29
Incl. 225.68 0.50 2.67 126 1.04 2.69 2.58
Incl. 226.18 0.52 15.40 120 1.37 2.37 2.29
Incl. 226.70 2.89 4.62 184 2.08 3.78 4.10
Incl. 229.59 0.73 1.24 106 1.17 2.02 12.80
Incl. 230.69 0.55 14.40 39 0.85 1.30 11.20
Incl. 234.46 0.64 0.10 132 0.44 3.54 3.11
Incl. 235.10 0.68 0.11 830 0.33 11.30 11.30
Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not true width.
 
 

The high-grade polymetallic Switchback vein system expands the currently producing Arista Mine mineralization (see map). The Company continues to develop a second drift to access Switchback and targets to crosscut and mine this mineral in the second half of 2016, dependent on drift progression, rock competency, potential water courses and CO2 gas that may be encountered during development. Thus far no appreciable amounts of water or gas have been encountered, though the Company does expect water management to be necessary in the future.

These infill and step-out drill results from Switchback confirm continuity of modeled veins and expand previously defined mineralization. The Switchback vein system remains open in all directions, and the Company continues to drill the extensions of this expanding vein system. At December 31, 2015, the Company reported mineralized material at Switchback in excess of 630,000 tonnes.

Mr. Barry Devlin, Vice President of Exploration, stated, "This latest round of drill results from Switchback continues to define, as well as expand, this impressive polymetallic vein system comprised of multiple en echelon veins. In particular, step-out Hole 516115 expands high-grade mineralization to the southeast where we had thought precious metal grades may have started to decrease. It is also exciting to see some of the highest gold grades drilled to date at Switchback in these latest intercepts. Our primary exploration goal is to continue expanding the Switchback epithermal vein system in the Arista Mine."

"The multiple recent drill intercepts including 9.5 meters of 8.85 grams per tonne gold and 669 grams per tonne silver, on the back of 8 meters of 6.85 grams per tonne gold and 462 grams per tonne silver announced earlier this month on May 10th, speak for themselves," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "It is great to be developing towards the Switchback veins while continued exploration success underscores it as a very exciting, high-grade and large new area of the Arista mine."

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. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,266,706 shares outstanding, no warrants, no long term debt and has returned $108 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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