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Gold Resource makes claim acquisition, consolidates mineralized trend at Isabella Pearl

Monday, January 9, 2017 8:43
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Gold Resource Corporation (NYSEMKT:GORO) shares rose more than 5% on Monday after the company said its acquisition of additional exploration mining claims consolidate the mineralized trend of its Isabella Pearl gold development project in Mineral County, Nevada.

The claims were acquired from Nevada Select Royalty Inc., a wholly-owned subsidiary of Ely Gold and Minerals Inc. (CVE:ELY).

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $109mln 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 $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 $500,000.

The newly acquired mining claims bring the total number of mining claims at the project to 494, covering approximately 9,000 acres and which consolidate and eliminate 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 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.

Future production development anticipates two adjacent open pits with the Isabella pit averaging around 1 gram per tonne gold with mineral outcropping at the surface, and the Pearl pit averaging around 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 around 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,” said Gold Resource Corporation’s CEO and President 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 shares were up 5.4% at $5.30 on Monday.

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/171343/gold-resource-makes-claim-acquisition-consolidates-mineralized-trend-at-isabella-pearl-171343.html

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