Gold Resource Corporation (NYSE:GORO) today said it has increased its gold and silver reserves at its mining operations in Oaxaca, Mexico.
Proven and probable gold reserves at the Oaxaca mining unit on 31 December 2016 rose by 31% to 167,300 ounces compared to 2015, while silver reserves climbed 17% to 10.1mln ounces.
Total reserves at the Oaxaca unit came to 1.9mln tonnes, up 15% on the previous year, with grades of 2.75 grams per tonne (g/t) in gold and 165 g/t.
The company also maintained 1.64mln proven and probable tonnes at the Arista vein system at the Aguila Project’s Arista Mine in Oaxaca. It also added 203,500 tonnes at the Arista Mine’s Switchback vein system.
For the first time, proven and probable reserves were reported from the Alta Gracia Project’s recently commissioned Mirador Mine with 43,800 tonnes, including 1,500 gold ounces and 481,400 silver ounces at grades of 1.06 g/t gold and 342 g/t silver.
Meanwhile, the Arista vein system reported mineralised material of 773,900 tonnes with grades of 1.45 g/t gold, 153 g/t silver, 0.2% copper, 1.4% lead and 3.6% zinc.
Gold Resource said the Switchback vein system mineralised material “increased significantly” from the prior year and now stands at 959,000 tonnes with grades 1.61 g/t gold, 97 g/t silver, 0.4% copper, 1.8% lead and 5.7% zinc.
The Alta Gracia Project saw mineralised material nearly doubled from the prior year with 296,900 tonnes and grades of 0.36 g/t gold and 232 g/t silver.
The Margaritas property reported initial mineralised material of 57,900 tonnes with grades of 0.72 g/t gold and 276 g/t silver.
“This is the strongest reserve report our company has recorded to date, significantly increasing the value of our Oaxaca mining unit,” said Jason Reid, chief executive and President of Gold Resource Corporation.
“Not only did we replace all the tonnes we mined during 2016, proven and probable reserves increased on all fronts including a 14% increase to the gold grade, a 31% increase to our gold ounces and a 17% increase to our silver ounces.”
The group’s vice president Barry Devlin said goals for exploration in 2017 include replacing tonnes mined at Arista Mine’s Arista and Switchback vein systems along with expanding the mineralisation at the Mirador mine.
Shares advanced 0.84% to $5.97 in early US trading.
Story by ProactiveInvestors