Gold Resource Corporation (NYSEMKT:GORO) has received the blasting permit for its Alta Gracia project in the southern state of Oaxaca, Mexico.
The permit was the last one the gold and silver miner had been waiting on, and it can now begin development work on the project and subsequently start producing.
The company is targeting drawing the first minerals from the project by the end of this year or early next, which is quick going, aided by the fact that development time is likely to be short owing to the presence of historic mine infrastructure.
GORO has a currently idle agitated leach circuit standing by at its Aguila mill, ready to begin oxide mineralization from Alta Gracia’s output.
Initial mining rates target 100 to 200 tonnes per day and an initial mill processing rate of 150 tonnes per day. The Alta Gracia mine has the potential to increase the company’s future annual silver production by around 500,000 silver ounces and 1,000 gold ounces, the company said.
At the end of 2015, the company estimated 185,000 tonnes in the mineralized material category grading 321 grams per tonne (g/t) silver and 0.55 g/t gold at Alta Gracia.
“We are pleased that the company’s Oaxaca Mining Unit business plan of having multiple mines feed a strategically located mill is well under-way with the development of our now fully permitted Alta Gracia mine,” said Jason Reid, chief executive officer and president of Gold Resource Corporation.
“We were able to advance Alta Gracia forward much faster with this business plan, as we only have to justify the mining and trucking costs to haul mineral to our Aguila mill for processing. This shared mill approach eliminates the need and capital required to build a mill at each of our six properties. Furthermore, it targets moving a property into production sooner, at less cost and may add to our production profile and longevity of operations. We are very excited to soon have Alta Gracia as our second producing mine within our Oaxaca Mining Unit,” he added.
Story by ProactiveInvestors