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Gold Resource Corp. (GORO)

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Gold Resource Corp. (GORO)

UPDATE - 3/15/2019

GORO / Gold Resource Corp... All : 10-years : 5yr-W : 2yr-D : 6mo /10d : vs-etc - Last: $3.96

YseO0Vi.gif

Sym : Price: MktCap EntVal : Ebitda : EV/eb.: Earns : PER-: Div. : Yield : BkVal : P/BV :
Gold : 13.01: $22.7b : $29.4B: $3.06b: r:9.60 :  (1.32): N/a- : $0.16 : 1.22%: $6.50: 200%:
NEM : 33.15: $17.7b : $20.2B: $2.74b: r:7.36 : $0.64: 51.8 : $0.56 : 1.68%: 19.70 : 168%:
Goro: $3.96: $243M: $239M: $33.2M r: 7.18 : $0.16: 24.8 : $0.02 : 0.51%: $2.16 : 183%:

Ace of KY writing:

(the following is an excerpt from an Update I have prepared for family and friends. GORO should be known already amongst GEI investors as it has been mentioned several times in the past on this forum - Ace)

Introduction

Gold Resource Corporation (ticker: “GORO”) is a junior gold exploration and development company headquartered out of Colorado, USA. GORO shares are currently trading on the over-the-counter bulletin board market. Their website address is: www.goldresourcecorp.com

Capital Structure and Chart

GORO currently has 28.2M shares outstanding, 2.6M unexercised options, and 0 warrants for a fully diluted 30.8M shares. Current market capitalization is approximately $107M. The company intends to list its shares on the AMEX exchange, but this will likely not happen for at least a year.

<chart omitted in this forum due to author's incompetency with respect to adding images to a post >

Management

GORO was founded by and is managed by the Reid family which managed US Gold prior to being bought out by Rob McEwen. I have not personally met the Reids, although I did spend some time on the phone with Jason (the CEO Bill Reid’s son). He was very forthcoming and answered all questions professionally. The Reids are spoken highly of by <Frizzers>, and their recent activity and shareholder register indicate that they know how to raise money in London and the European capital markets. The Reids hold about 32% of the outstanding shares of GORO, so they will share their shareholders’ fortune (or pain). Also, Jason (and the latest GORO presentation) insists that they are committed to paying dividends as soon as they are able.

Assets

GORO’s primary assets are a group of gold/silver deposits in Oaxaca, Mexico. The most advanced of these is the El Aguila deposit. GORO made a positive production decision on El Aguila earlier this year. A feasibility study has not been commissioned on the El Aguila project, but an independent scoping study from 2004 is available by contacting Jason Reid. GORO insists that there are currently 3 years of mineable resource, although the lack of a feasibility study has prevented them from classifying any of the resource as reserves. Additional resources are currently being proven up by drilling, and an updated resource report is due any day now from their consultant. There have been several nice intercepts over the past few months, and Jason indicated that drilling will continue for the foreseeable future. Production is currently envisioned at 70k, 90k, and 100k ounces for the first three years, respectively. The scoping study indicated that the average cash cost of gold production would be approximately US$107/oz. Costs have escalated substantially since 2004, but it should also be noted that the project is very sensitive to ore grades and the drill results subsequent to 2004 indicate that the ore grade should be in the 11g/t gold equivalent area. The scoping study indicated $82.4/oz costs at these grades, so GORO’s forecasted $100/oz cash cost appears to be reasonable. Also, the scoping study was performed using a 750t/d production rate whereas GORO has decided to increase the capacity to 850t/d. Capital costs have increased significantly. The company is currently forecasting $20M in capital spending to bring the mine into production versus the $11M scoping study estimate. Unfortunately, this type of inflation has been experienced by all in the construction industry.

Financing

Jason indicated that the construction of El Aguila will be 100% equity financed (and that there is significant interest from existing institutional shareholders to participate in this financing.) Management believes that their first mine should be equity financed due to the terms required of a company with no current cashflow (such as hedging and high interest rates) and also to avoid any problems if startup delays are encountered. Future mines would include debt financing on better terms. My estimate is that GORO will need to raise at least $25M by the end of the year to finance the construction of El Aguila and continue drilling. Let’s assume $30M to be conservative and to account for any subsequent financing needed next year to carry them through to positive operational cash flows. Since their shares have been trading at around $4 for the past few months, my estimate is that approximately 8M shares will be issued along with 4M warrants. This would bring GORO’s fully diluted share count to 42.8M shares, which (with only 4M warrants) would still be very tight for a 100k oz gold producer.

Valuation

Since there has not been a formal feasibility study prepared for El Aguila, I created a valuation for the project based on the discounted cash flows (DCF) method. The valuation revealed that the first three years of production do not justify the current stock price on a DCF basis. They need to prove up approximately 500k more gold equivalent ounces to justify the current stock price on a DCF basis. This seems reasonably achievable with the drill results that have been released this year (there are multiple deposits that would supply feed to the El Aguila mill.) Most gold producers (especially low-cost producers) are valued at a significant premium to DCF or net asset value (NAV). Thus, it would not be unreasonable to expect a double in the stock price if and when GORO has proven it can produce low-cost gold and increases its resource (potentially by late next year). Assuming $700 gold and 42.8M shares, GORO is currently trading at about 3 times anticipated 2009 cash flow.

Risks

GORO is a risky investment for the following reasons:

1. GORO’s resources are non-NI-43-101 compliant. Thus, even though they have retained an independent consultant to evaluate the resources, it is unlikely that the deposit will attain the same market value that a 43-101 deposit would carry. It is obvious that the Reids are managing GORO to become a producer rather than a takeover target.

2. GORO only has one independent director. This concern is somewhat mitigated by the fact that management owns almost 1/3 of the outstanding shares. Jason did indicate, however, that they would likely bring on an additional independent director within the next year or two.

3. Permits and surface rights are not yet in place. This is a concern with all mining companies. GORO does not anticipate any problems obtaining their permits in a timely fashion, however.

4. Price of gold is currently at 30 year highs. A correction is likely as the central banks try to keep the price of gold under control. Depending on the price of gold, one may likely be able to purchase GORO at a lower price within the next few months prior to construction completion.

Investment Decision

I purchased a small position in GORO this past week. GORO has had a significant appreciation in share price this past year. I would like to see the share price correct some prior to securing a larger position. Unfortunately, with gold well over $700/oz it is difficult to find any good purchases in the sector. If we get a good correction in the price of gold over the next month or two, it may result in a better opportunity to purchase GORO. The primary reason for being careful with GORO, however, is the low quantity of in situ resource it currently has on the books. The upcoming resource report will give us a better picture of GORO’s future cash flows beyond the next three years.

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nice work, Ace

 

and a good announcement today too

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DrBubb said:
and a good announcement today too

 

Yes - the surface rights risk just went away this morning, not to mention the good drill intercepts.

I think I forgot to mention above that, outside of the initial El Aguila open pit deposit which is just gold/silver, there are significant potential base metal byproducts (zinc, lead, copper). GORO intends to finance a recovery circuit for these base metals using cash flow from the open pit deposit.

Ace

Press Release Source: Gold Resource Corporation

Gold Resource Corporation Updates Progress at Its El Aguila Project in Oaxaca, Mexico

Monday October 8, 6:00 am ET

DENVER, CO--(MARKET WIRE)--Oct 8, 2007 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) is pleased to announce the signing of the important local Ejido (agrarian community) agreements to allow for mine development at its El Aguila Project in the southern state of Oaxaca, Mexico. Additionally, drilling continues to return high-grade intercepts from its El Aguila Project. These high-grade intercepts include 11 meters of 19.57 grams/tonne (0.63 oz/tonne) gold equivalent at its La Arista area; 6 meters of 16.47 grams/tonne (0.53 oz/tonne) gold equivalent at its El Aire vein; and 1 meter of 43 grams/tonne gold and 359 grams/tonne silver (1.63 oz/tonne gold equivalent) at its El Aguila open pit deposit. The El Aguila Project is targeted for production mid-2008 subject to timely obtaining all required permits and regulatory approvals, necessary funding and equipment delivery schedules.

The agreements between the local San Pedro Totolapam Ejido and Gold Resource Corporation's wholly owned Mexican subsidiary have been signed and filed with the National Agrarian Court and provide for an initial 20 year operation with the ability for extensions. These agreements represent local approval and support for Gold Resource Corporation's development of a mine at its El Aguila Project. This local approval is a necessary and important step to obtain federal mining permits.

Recent drill highlights include:

La Arista area;

Hole 7083 (-45 deg)

-- 11 meters of 2.64 g/t gold, 167 g/t silver, 2.97% lead, 6.66% zinc (or

a gold equivalent* value of 19.57 g/tonne or 0.63 oz/tonne)

El Aire area;

Hole 7285 (-60 deg)

-- 6 meters of 4.91 g/t gold, 274 g/t silver, 1.22% lead, 2.85% zinc (or

a gold equivalent* value of 16.49 g/tonne or 0.53 oz/tonne)

 

El Aguila open pit deposit;

Hole 7229 (90 deg)

-- 1 meter of 43.10 g/t gold, 359 g/t silver (or a gold equivalent* value

of 50.69 g/tonne or 1.63 oz/tonne) and

-- 2 meters of 9.59 g/t gold, 125 g/t silver (or a gold equivalent* value

of 12.13 g/tonne or 0.39 oz/tonne)

Source: Gold Resource Corporation

(click to enlarge)

Recent drill intercepts

Assays by ALS Chemex, Vancouver, BC Canada

Gold Resource Corporation's president William W. Reid stated, "Our drilling continues to expand the high-grade El Aire vein which is still open in both strike and depth. The La Arista area shows both open pit and underground mining potential. We continue to be impressed with the area's multiple high-grade drill holes with intercepts of over one half ounce gold equivalent per tonne. This expanding area is also open in all directions and has the potential of becoming GRC's third high-grade deposit at our El Aguila Project."

Mr. Reid added, "Additional mineralization, as high as 43 grams per tonne gold and 359 grams per tonne silver over 1 meter, has been intercepted with infill drilling at our El Aguila open pit. We are also adding ounces with step out drilling. The El Aguila shallow high-grade open pit is where the initial production will come from."

"We are very pleased with the local support for our mining project and embrace the opportunity for our project to benefit the local communities. And drilling continues to bolster our belief that the El Aguila Project is potentially a very large, robust and high-grade epithermal system. We are consistently adding ounces and moving forward on all fronts as an emerging gold producer," concluded Mr. Reid.

 

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 four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 28,249,552 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-KSB 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 "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 production, future expenses and future liquidity and capital resources. 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. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-KSB and Form SB-2 filed with the Securities and Exchange Commission.

 

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=596243

 

 

 

 

Contact:

Contact:

Jason Reid

Gold Resource Corporation

303-320-7708

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(This is good news but I think GORO is a hold at current price and market conditions. I was hoping to pick up more shares below $3.20 but that may not materialize now. Also I wonder why they are calling it an "internal analysis" since I know they had retained an independent consultant to prepare resource estimates? - Ace)

 

 

Press Release Source: Gold Resource Corporation

 

 

Gold Resource Corporation Increases Ounces at Its El Aguila Project in Oaxaca, Mexico

Tuesday October 30, 10:38 am ET

 

 

DENVER, CO--(MARKET WIRE)--Oct 30, 2007 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News), (Frankfurt:GIH.F - News) announced results from an internal analysis of its drilling to date at its 100% owned El Aguila Project in Oaxaca, Mexico. Estimates of mineralized material equal 1,836,497 tonnes grading 2.57grams/t gold (Au), 188.24 grams/t silver (Ag), 1.08% Lead (Pb), 2.91% zinc (Zn), 0.26% copper (Cu). This equates to 773,355 gold equivalent (AuEq) ounces, as detailed below. This mineralized material does not meet the SEC definition of Proven and Probable Reserves but would be equivalent to an estimate of Inferred Resource in Canada. Gold Resource expects to commence production at its El Aguila Project mid-2008, subject to obtaining remaining permits and regulatory approvals, completing necessary financings and equipment deliveries.

 

Gold Resource Corporation's president William W. Reid stated, "We are pleased to have more than doubled our April 11, 2007 mineralized material estimate of 290,500 gold equivalent ounces to 773,355 gold equivalent ounces. Equally, based on the fact that our drilling continues to confirm and expand this very robust, high-grade epithermal system, we feel the exploration potential at El Aguila is great and may soon increase our gold equivalent estimate to over 1 million ounces."

 

The mineralized material number is an in-place number without regard to recoveries. Gold Resource, like many in the industry, subscribe to the use of gold equivalent or AuEq as a means to present the aggregate value of polymetallic ore. Gold equivalent valuation quantifies the base metal percentages and precious metal ounces of polymetallic ore into one value. This calculation converts the metals quantity into its dollar value and converts that dollar value back into an equivalent gold value. Gold equivalent is a valuation calculation that places the emphasis on the total dollar value for polymetallic ore. The following mineral values were used in this gold equivalent conversion: gold at $650/ounce, silver at $13/ounce, lead at $1.60/pound, zinc at $1.30/pound and copper at $3.60/pound.

 

Gold Resource Corporation's April 11 production decision was based on a targeted initial three year mine life and a capital payback of 6 months. Because of the increase in total ounces along with certain higher grade areas, such as El Aire Vein #2 which averages 0.83 AuEq oz/tonne and La Arista Vein #1 which averages 0.63 AuEq oz/tonne, GRC now targets 6 years of mine life with annual production targets of gold or gold equivalent levels as follows:

 

Ounces in Gold (Au) or Gold Equivalent (AuEq)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

70,000 100,000 120,000 120,000 120,000 120,000

 

Gold Resource Corporation continues to move forward on all fronts as an emerging low cost gold producer.

 

About GRC.......

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GORO is now one of my biggest positions:

GOLD RESOURCE CORPORATION CLOSES $21.6 MILLION PRIVATE PLACEMENT (at $4.00)

FUNDING TO BUILD EL AGUILA PROJECT

DENVER – December 6, 2007 – Gold Resource Corporation (GRC) (OTCBB: GORO, FRANKFURT:

GIH) is pleased to report closing a $21.6 million private placement of 5.4 million shares of restricted

common stock at $4.00 per share, with no warrants. Funding will be used for construction of GRC’s El

Aguila Project in Oaxaca, Mexico. Gold Resource is targeting gold production at El Aguila the second

half of 2008, subject to obtaining remaining permits, regulatory approvals and equipment deliveries.

Gold Resource Corporation’s president, William W. Reid stated, “We are pleased with the success of this

important funding. We are now moving forward with equipment purchases to facilitate our schedule of

producing gold and silver in 2008. Once final permits are received, we will be in the position to

aggressively begin construction. We are prepared to undertake additional funding later if the need arises

with a focus on keeping shareholder dilution to a minimum.

We are pleased with the confidence shown in Gold Resource Corporation by all the funding participants,

several of which participated in Gold Resource’s IPO funding in September of 2006. We are also

pleased to welcome several new U.S. institutional shareholders. Many of our institutional participants are

resource focused and industry leaders in mine finance.”

At the El Aguila Project Gold Resource will build an 850 tonne/day mill that will have the ability to produce

gold and silver dore and flotation concentrates. The first full year of production is targeted to be 70,000

ounces of gold at a cash cost of approximately $100/ounce from the El Aguila shallow open pit mine.

The engineering firm of Lyntek, Inc. of Denver, who designed the El Aguila mill, has been contracted to

oversee building the mill facility.

The El Aguila Project is one of four high-grade properties in the state of Oaxaca, Mexico, in which Gold

Resource has 100% interest. High-grade ore from any of these properties can be trucked to the

proposed El Aguila mill and with the mill’s ability to produce either dore or concentrates provides for an

efficient and flexible operation.

“We are now one step closer to producing gold and generating cash flow which will solidify and

strengthen operations in Oaxaca. In addition, we are fortunate to have four high-grade properties that

could ultimately make use of the El Aguila mill. This will allow us to maximize the head-grade through the

mill and provides the opportunity to create a longer project life,” stated Mr. Reid

In an industry that continues to push itself to the limits of larger size, Gold Resource Corporation enjoys a

competitive niche to build shareholder value through high margin, low capital cost projects. The current

funding positions Gold Resource to emerge as a low cost gold producer in 2008.

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This is good news. Now they can get everyone under contract so capital costs are mostly locked in.

No warrants on the PP, and the stock price didn't budge even though the placement was 10% under market value.

The Reids are definitely managing this to benefit shareholders. That's why it's important (I believe) to invest in companies with substantial management ownership. Now if only the share price would fall so I could pick up more GORO. Seems like every junior is falling except for the ones I want more equity in.

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Some really good posting from you at the moment Ace here and elsewhere. Meanwhile, Goro gets better and better:

 

GOLD RESOURCE CORPORATION DRILLS 1 METER OF 5000 G/T SILVER

WITHIN 4 METERS OF 2955 G/T SILVER AT LA ARISTA

DENVER – December 10, 2007 – Gold Resource Corporation (GRC) (OTCBB: GORO,

FRANKFURT: GIH) is pleased to announce drilling additional high-grade La Arista vein

intercepts including 1 meter of 5000 grams/tonne (160.75 oz/tonne) silver within 4

meters of 2955 grams/tonne ( 95 oz/tonne ) silver. The La Arista deposit is part of

GRC’s El Aguila Project in the southern state of Oaxaca, Mexico. The El Aguila Project

is targeting gold production the second half of 2008 subject to timely obtaining required

permits, regulatory approvals and equipment delivery schedules.

La Arista drill highlights include:

Hole 7288 (-55 deg)

• 1 meter of 2.74 g/t gold, 5000 g/t silver, 0.35% copper, 0.53% lead, 1.60%

zinc (or a gold equivalent* value of 114.37 g/t (3.68 oz/tonne)) within,

• 4 meters of 1.35 g/t gold, 2955 g/t silver, 0.27% copper, 0.36% lead, 1.08%

zinc (or a gold equivalent* value of 67.78 g/t (2.18 oz/tonne))

Hole 7087 (-45deg)

• 6 meters of 0.73 g/t gold, 1202 g/t silver, 0.84% copper, 0.70% lead, 1.22%

zinc (or a gold equivalent* value of 31.92 g/t (1.03 oz/tonne))

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...1 meter of 5000 grams/tonne (160.75 oz/tonne) silver within 4

meters of 2955 grams/tonne ( 95 oz/tonne ) silver.

 

Now that's what I call a "Bonanza grade"!

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More good news and the stock traded down it.

I really like this company. It is my largest single position and I treat each share as though it were a physical piece of metal. So there.

Gold Resource Corporation's El Aguila Project Returns 1m of 34.3 g/t Gold Within 9m of 1.4 oz/t Gold Equivalent at La Arista; 10m of 0.55 oz/t Gold Equivalent at El Aire

Monday February 11, 1:07 pm ET

DENVER, CO--(MARKET WIRE)--Feb 11, 2008 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) reports 1 meter of 34.3 g/t gold within 9 meters of 1.4 oz/tonne gold equivalent (AuEq) at its La Arista deposit and 10 meters of 0.55 oz/tonne AuEq at its El Aire deposit. The La Arista and El Aire vein deposits are part of GRC's El Aguila Project in the southern state of Oaxaca, Mexico. The El Aguila Project is targeting gold production the second half of 2008 subject to timely obtaining the remaining required permits, regulatory approvals and equipment delivery schedules.

Recent drill highlights include:

La Arista Hole # 7089 (-45 deg

Vein # 1

-- 1 meter of 34.30 g/t gold, 1375 g/t silver, 1.57% copper, 5.99% lead,

6.97% zinc, (or a gold equivalent* value of 86.67 g/t

(2.79 oz/tonne)) and,

-- 1 meter of 15.00 g/t gold, 1040 g/t silver, 0.71% copper, 1.61% lead,

6.10% zinc, (or a gold equivalent* value of 49.80 g/t

(1.60 oz/tonne)) within,

-- 9 meters of 6.90 g/t gold, 894 g/t silver, 1.26% copper, 3.88%

lead, 6.08% zinc, (or a gold equivalent* value of 43.65 g/t

(1.40 oz/tonne))

Vein # 2

-- 1 meter of 10.95 g/t gold, 1605 g/t silver, 0.54% copper, 0.63%

lead, 1.14% zinc, (or a gold equivalent* value of 49.65 g/t

(1.60 oz/tonne)) within,

-- 2 meters of 8.69 g/t gold, 1788 g/t silver, 0.61% copper, 0.47%

lead, 0.91% zinc, (or a gold equivalent* value of 50.99 g/t

(1.64 oz/tonne))

 

El Aire Hole # 7292 (-61 deg)

-- 10 meters of 2.16 g/t gold, 288 g/t silver, 0.43% copper, 1.49%

lead, 3.93% zinc, (or a gold equivalent* value of 16.94 g/t

(0.55 oz/tonne))

The present drilling focus of GRC is to define the La Arista deposit's three parallel veins, each with significant underground mining widths. Currently, Vein # 1 is 8-10 meters wide, Vein # 2 is 5-6 meters wide and Vein # 3 is 2-4 meters wide. As previously stated, current drilling has shown ore grade mineralization over 300 meters of vertical extent but with all veins open in strike and depth.

Recent La Arista and El Aire drill results include:

AuEq*

Hole Angle From Interval Au Ag Cu Pb Zn AuEq* oz/

# (deg) Meters Meters g/t g/t % % % g/t tonne

--------- ----- ------ -------- ----- ---- ---- ----- ----- ----- -----

La Arista

7089 -45 142 1 10.95 1605 0.54 0.63 1.14 49.65 1.60

7089 -45 143 1 6.42 1970 0.67 0.31 0.67 52.34 1.68

Average 2 8.69 1788 0.61 0.47 0.91 50.99 1.64

7089 -45 235 1 2.45 1895 1.27 1.56 2.78 53.22 1.71

7089 -45 236 1 3.36 2370 4.30 2.41 4.56 77.75 2.50

7089 -45 237 1 1.70 234 0.70 10.90 14.75 43.74 1.41

7089 -45 238 1 0.43 126 0.46 4.73 5.32 18.33 0.59

7089 -45 239 1 1.33 330 1.25 2.54 5.37 23.04 0.74

7089 -45 240 1 1.02 121 0.30 2.07 4.48 13.30 0.43

7089 -45 241 1 2.48 558 0.75 3.12 4.36 27.04 0.87

7089 -45 242 1 34.30 1375 1.57 5.99 6.97 86.67 2.79

7089 -45 243 1 15.00 1040 0.71 1.61 6.10 49.80 1.60

Average 9 6.90 894 1.26 3.88 6.08 43.65 1.40

El Aire

7292 -61 225.5 9 2.12 286 0.42 0.99 3.93 16.07 0.52

7292 -61 234.6 1 2.53 304 0.55 5.58 3.97 24.10 0.77

Average 10 2.16 288 0.43 1.49 3.93 16.94 0.55

--------- ----- ------ -------- ----- ---- ---- ----- ----- ----- -----

*(Gold Equivalent (AuEq*) in chart using gold at $650/oz, silver at $14/oz, copper at $3.10/lb, lead at $1.40/lb, zinc at $1.20/lb) Assays by ALS Chemex, Vancouver, BC Canada

Gold Resource Corporation's President William W. Reid stated, "The La Arista deposit was discovered less than 7 months ago and since then drilling continues to intercept impressive high-grade gold and silver values. The 1 meter intercept of 34.3 g/t gold (with 1375 g/t silver) is the highest gold intercept to date at La Arista. The La Arista deposit alone, with the gold and silver grades we are intercepting, has the potential to provide us the ability to produce 100,000 to 120,000 ounces, or more, of gold and/or gold equivalent per year. Once La Arista production begins (targeted to begin in the second year), GRC's gold equivalent (AuEq) production numbers will only include precious metals (gold and silver) with silver values converted to the equivalent gold ounces. First year production is targeted from the El Aguila Project's high-grade, shallow El Aguila open pit."

The significance of the La Arista intercepts can be illustrated by relating them to the potential annual production of the proposed El Aguila mill. The 300,000 tonne per year mill with an average head grade of only 11 grams per tonne gold produces 100,000 ounces of gold per year. Equally, a silver grade of 500 grams per tonne through the mill would yield 5.3 million ounces of silver which equates to a gold equivalent (AuEq) 100,000 ounces. A head-grade through the mill containing a combination of both gold and silver values, such as those shown by the intercepts in this and previous press releases for the La Arista deposit, are capable of producing 100,000 to 120,000 ounces, or more, per year gold and/or AuEq. The La Arista deposit has many intercepts exceeding these threshold values.

 

Gold Resource Corporation is very fortunate to have a polymetallic deposit at La Arista. The benefit of polymetallic ore (polymetallic being gold, silver, copper, lead, and zinc) is while recovering gold and silver, valuable base metals (copper, lead, and zinc) are also recovered. Any base metal revenues are in addition to the gold and silver revenues and are applied against production costs of gold and silver. The net effect of La Arista's impressive polymetallic ore is that yearly production of 100,000 ounces or more, of gold / AuEq (gold and silver) will result in very low cost, or possibly even negative cost, of production. This is in line with industry practice as evidenced by Agnico Eagle, Goldcorp and others who use base metal production to lower gold production costs.

 

The rapidly expanding La Arista deposit will continue to evolve as to its average estimated grade but with this recent high of 34 g/t gold and the previously reported high of 5,000 g/t silver, La Arista's grade appears to be trending higher, especially in precious metals. The high-grade La Arista deposit is scheduled to commence processing during the second year of El Aguila mill operation.

 

Though GRC's main focus continues on the La Arista area, a recent step out hole (# 7292) at the El Aire deposit, which has not been drilled for several months, extends the El Aire vein mineralization south by 70 meters. El Aire vein mineralization is open in both strike and depth. The El Aguila Project continues to grow in the El Aire/La Arista areas where mineralization now extends 700 meters along strike.

 

Mr. Reid continued, "We are very pleased with the progress of the El Aguila Project. Our aggressive exploration program continues to reward with exciting high-grade gold intercepts. We recently began construction at the El Aguila Project with the mine and mill road. Mill equipment procurement is progressing well and we are expecting the mill/tailings permit shortly. Gold Resource Corporation is moving forward on all fronts as an emerging low cost gold producer and, as of now, is on course to begin production the second half of 2008."

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Gold Resource Corporation's El Aguila Project Returns :

+ 1m of 34.3 g/t Gold Within 9m of 1.4 oz/t Gold Equivalent at La Arista;

+ 10m of 0.55 oz/t Gold Equivalent at El Aire

...

The significance of the La Arista intercepts can be illustrated by relating them to the potential annual production of the proposed El Aguila mill. The 300,000 tonne per year mill with an average head grade of only 11 grams per tonne gold produces 100,000 ounces of gold per year. Equally, a silver grade of 500 grams per tonne through the mill would yield 5.3 million ounces of silver which equates to a gold equivalent (AuEq) 100,000 ounces. A head-grade through the mill containing a combination of both gold and silver values, such as those shown by the intercepts in this and previous press releases for the La Arista deposit, are capable of producing 100,000 to 120,000 ounces, or more, per year gold and/or AuEq. The La Arista deposit has many intercepts exceeding these threshold values.

 

Those are excellent grades, and it becomes more apparent when you put them in grams per tonne:

(1 ounce/ton = xx g/t)

+ 9m of 1.4 oz/t Gold Equiv. at La Arista : 9.0 x 43.65 g/t = xxx /AU only: 9.0 x 6.90 g/t = xxx

+ 10m of 0.55 oz/t Gold Equiv. at El Aire : 10. x 16.94 g/t = xxx /AU only: 10. x 2.16 g/t = xxx

 

... and do a "boxer" analysis*: (within a one cu meter drill "box" following the drillhole, there are how many grams?)

9.0 x 43.65 = 392.8 /AU only: 9.0 x 6.90 = 62.1 (less than 100 on a "pure gold basis")

10. x 16.94 = 169.4 /AU only: 10. x 2.16 = 21.6

 

It is rare, very rare, when a company reports a 100-boxer (i.e. better than 10x10) and the price goes down!

 

However, please note that these are "gold equivalents", and poly metallic deposits are difficult to refine.

I suppose this shows that too few people are following the stock. The Reids will have to work to get the story out more widely.

Too many existing holders may be unhappy about the polymetallic part of the story. It bothers me somewhat too, to see

that these high grades come from a "gold equivalent" calculation.

 

= =

*"Boxer analysis": is a tool that I have developed myself.

It is useful, but very "quick and dirty". Nevertheless, it does give some feeling for how much gold is down there.

And it gets people away from focussing on the tiny high grade parts.

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Are we going to bust through that quadruple or quintuple top this time?

 

goroweeklyzg9.png

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Glad to see one of my holding Hochschild Mining (HOC.L) has increased it's stake in GORO to 15% now.

 

 

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Hochschild Mining Increases Interest In Gold Resource Corp To 23.9%

 

Underground mining specialist, Hochschild Mining (LSE: HOC) confirmed that it had exercised its option to invest a further US$20 million in US listed mining junior, Gold Resource Corp (OTCBB:GORO). The option allowed Hochschild to purchase 5 million shares in Gold Resource Crop at US$4.00 per share – a 20% discount to the 30 day average closing price. Following the share purchase, Hochschild’s interest increased from 14.6% to 23.9%.

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Gold Resource Corp Announces Commercial Production

http://news.goldseek.com/FeaturedPR/1278014122.php

DENVER – July 1, 2010 – Gold Resource Corporation (GRC) (US-OTCBB: GORO, FRANKFURT: GIH) announces Commercial Production as of July 1, 2010 from its 100% owned El Aguila high-grade gold and silver project. The El Aguila Project is located in the southern state of Oaxaca, Mexico. The Company also announces effective July 1, 2010, the promotion of Mr. Jason Reid to Gold Resource Corporation’s President.

Gold Resource Corporation’s CEO, William W. Reid stated, “It has been a successful team effort with a lot of hard work from our staff and subcontractors which has allowed us to declare Commercial Production three years and three months after making the decision to put the El Aguila Project into production. Support from our local Totolapam Ejido, including support from the three towns of Totalapam, San Jose de Gracia and Las Margaritas, and support from our strategic alliance partner, Hochschild Mining plc were also instrumental to our success.”

Gold Resource Corporation made its production decision April of 2007, at that time, having only 3 to 4 years of projected mine life. The production decision was based on the excellent economics at El Aguila that indicated an estimated capital payback for the Project of less than one year. Today, the Company estimates the El Aguila Project’s mine life at a minimum of 9 years, predominantly due to its Arista deposit discovered subsequent to its 2007 production decision. Gold Resource Corporation’s management is confident that over time the Project’s mine life could double or more by expansion of its known deposits alone and is encouraged by its exploration program’s recent discoveries including a new high-grade gold and silver area (see Company’s June 10, 2010 press release).

Mr. William Reid continued, “We have been consistent in our commitment to our strategy; seek low-cost, high margin projects, place such projects into production at the earliest point in time and keep a disciplined capital structure. This commitment has led to creating significant value to the owners of the Company, its shareholders.”

Gold Resource Corporation’s Board of Directors voted unanimously to promote Mr. Jason Reid to President of the Company effective July 1, 2010. Mr. Jason Reid previously served as GRC’s Vice President of Corporate Development. William W. Reid steps down as President while remaining CEO of the Company.

Mr. William Reid stated, “It is with personal pride that I announce the Board’s decision to promote Mr. Jason Reid to President of the Company. Jason has been with Gold Resource Corporation since it was a private company over 4 years ago and has been instrumental in its success. As a Company that demands a great deal of effort at the corporate level from just a few individuals, Jason has handled and assisted in multiple aspects of the Company as VP of Corporate Development. These included the execution of the Company’s growth strategy, self underwritten IPO, decisions on operations, activities relative to equity funding, retail and institutional marketing and keeping shareholders informed on the Company’s progress. We are confident Jason will take the Company into the next decade and beyond preserving our legacy and building on our unique approach to the business of mining.”

Gold Resource Corporation’s President, Mr. Jason Reid, stated, “We are very pleased to report Commercial Production which marks a major milestone for the Company and its shareholders as we emerge as a low cost gold producer. This milestone is a credit to all involved and particularly our Mexican subsidiary’s dedicated staff. I am honored to be the new President of Gold Resource Corporation and honored to continue working with our competent, professional and hard working group of people. I am not only motivated, but committed to continue execution of the Company’s business strategy for the benefit of its shareholders.”

Mr. Jason Reid continued, “Many challenging aspects of the mining business, including deposit discovery, permitting, engineering, funding, construction, establishing a team of professionals and executing Commercial Production are now behind us. We have met these real and complex challenges but our work continues. We now enter a new phase focusing on our aggressive growth curve targeting to triple annual production to 200,000 precious metal gold equivalent ounces three years from today, at zero cash cost using industry standard base metal byproduct credits.”

“With cash flow from successful operations we plan to accelerate our aggressive exploration program, target additional low-cost gold and silver ounces and remain focused on potential dividend distributions.” stated Mr. Jason Reid.

 

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GOLD RESOURCE CORPORATION APPLIES FOR NYSE: AMEX LISTING

 

DENVER – July 8, 2010 – Gold Resource Corporation (GRC) (OTCBB: GORO,

FRANKFURT: GIH) announced today it has been approved to apply for the listing of its common stock on the NYSE: AMEX. Gold Resource Corporation is a low cost gold producer with operations in southern Mexico.

Gold Resource Corporation announced Commercial Production July 1, 2010 from its El Aguila Project’s high-grade open pit deposit. The Company targets 70,000 ounces of gold over the next 12 months at approximately $200 cash cost per ounce from its El Aguila mill’s flotation circuit. The Company’s aggressive growth curve targets production ramp up by year 3 to 200,000 ounces of gold equivalent (gold and silver) at $0 cash cost per ounce using industry standard base metal byproduct credits.

Gold Resource Corporation’s President, Mr. Jason Reid, stated, “We view a possible NYSE: AMEX listing as the next logical progression for Gold Resource Corporation as a gold producer. A listing would provide greater market exposure and increased liquidity for investors.”

Mr. Reid continued, “Gold Resource Corporation’s aggressive growth curve, focus on adding low-cost ounces and the potential to distribute a meaningful dividend position the Company as a unique investment in the gold sector. This potential exchange listing should open Gold Resource Corporation to a new segment of gold investors.”

Here's also the latest presentation for those not familiar.

Gold Resource Corp Presentation

I don't know why this seems to attract so little interest on the UK boards. As someone said yesterday - must still be very early days!

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UPDATE - 3/15/2019

GORO / Gold Resource Corp... All : 10-years : 5yr-W : 2yr-D : 6mo /10d : vs-etc - Last: $3.96

YseO0Vi.gif

GORO compared ... update : 10d:

ECEnch1.gif

GORO / Ratio to GDXJ : vs.GDXJ,SIL : $3.96 / $32.33 = r-10.0%

tJ318Hv.png

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Wow!!!

Can remember talking to Frizzers about these what seems like yesterday and the dividends; these were one of my favourite goldies, for that reason. Sold when they were sliding and can’t believe having ditched them off my watchlist, how they have fallen so much!

What the heck happened here?

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Production & dividends disappointed, as GORO slid into the early 2016 low (near $1.20)

The share price is up from those dismal levels

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Seven consecutive years of Profits

Zero warrants, zero LTD... only 57 million shares OS

Targeting 100% Gold Production Increase and Higher Dividends - Jason Reid

 

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GORO -etc ... chart :

HwyZ1Xp.gif

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GORO ready to Go?

GORO / Gold Resource Corp... update / Last: Goro US$3.83 +0.19 +5.22% / $3.67 $3.67 $3.84:  625.1k (+00.?)

Nv3HIn3.gif

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