COLORADO SPRINGS, CO -- (Marketwired) -- 01/12/17 -- Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced the most significant expansion of its Switchback vein system to date with a greater than 200 meter step-out drill intercept at the Aguila Project's Arista mine. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $109 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.
From an underground exploration drill pad located on level 14 of the Arista Mine's Arista vein system, a drill hole targeting a greater than 200 meter step-out on the Switchback vein system intercepted multiple high-grade veins. At least six (6) veins were intercepted in Hole 516147, significantly extending the Switchback vein system mineralization to the northwest and extending the system from approximately 300 meters of strike length to now over 500 meters of strike. The Switchback vein system remains open in all directions.
Drill Highlights include (m=meters, g/t = gram per tonne):
Hole# 516147
- 4.05m of 1.25 g/t gold, 117 g/t silver, 1.00% copper, 2.13% lead, 12.90% zinc
incl. 1.97m of 1.93 g/t gold, 134 g/t silver, 1.19% copper, 2.47% lead, 18.34% zinc - 1.10m of 2.36 g/t gold, 566 g/t silver, 0.55% copper, 0.70% lead, 1.21% zinc
incl. 0.63m of 3.36 g/t gold, 960 g/t silver, 0.63% copper, 0.93% lead, 1.72% zinc - 3.28m of 0.87 g/t gold, 257 g/t silver, 0.18% copper, 0.34% lead, 0.49% zinc
incl. 0.39m of 1.55 g/t gold, 995 g/t silver, 0.78% copper, 2.33% lead, 3.35% zinc - 0.35m of 23.90 g/t gold, 3,650 g/t silver, 0.58% copper, 0.68% lead, 1.30% zinc
"This is a powerful, growing epithermal vein system," stated Mr. Barry Devlin, Vice President of Exploration for Gold Resource Corporation. "It is very exciting to intercept multiple, parallel high-grade veins with such a significant step-out drill hole at Switchback. Grades continue to impress with gold running as high as 23.90 grams per tonne, silver as high as 3,650 grams per tonne, and zinc as high as 18.34%. These drill results extend and add to the known mineralization at Switchback and continue to build on the success of our previous drill programs in 2016. Additional Switchback step-out drilling is underway with assays pending. We are very excited to continue to test the extensions of this expanding deposit."
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SWITCHBACK +200 METER STEP-OUT DRILL RESULTS
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Angle From Interval Au Ag Cu Pb Zn
Hole # ------- Vein -------------------------------------------------------
deg Meters Meters g/t g/t % % %
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506.34 4.05 1.25 117 1.00 2.13 12.90
Vein -------------------------------------------------------
Incl. 506.61 1.97 1.93 134 1.19 2.47 18.34
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Vein 564.60 0.40 3.10 61 0.11 0.25 2.73
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Vein 605.53 1.54 0.71 30 0.46 3.27 5.76
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749.52 1.10 2.36 566 0.55 0.70 1.21
516147 -16 Vein -------------------------------------------------------
Incl. 749.52 0.63 3.36 960 0.63 0.93 1.72
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753.77 3.28 0.87 257 0.18 0.34 0.49
Vein -------------------------------------------------------
Incl. 756.66 0.39 1.55 995 0.78 2.33 3.35
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Vein 761.02 0.35 23.90 3,650 0.58 0.68 1.30
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Vein 764.37 0.31 3.79 258 0.18 0.29 0.85
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Assays by ALS Chemex, Vancouver, BC Canada. Meters Down Hole, Not true
width.
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"We are thrilled with this massive expansion on strike of our high-grade Switchback vein system," stated Mr. Jason Reid, President and CEO of Gold Resource Corporation. "Equally important as this 200 meter extension is the fact that the discovery outcrop of the Switchback is evident in a ridge approximately 300 additional meters further on strike to the northwest from this intercept. These veins could not only extend underneath the surface expression of Switchback but continue along strike as well. This gives credence to our belief that the Switchback vein system could potentially become every bit as big as the Arista vein system's current known strike length, if not larger. This is an exciting time for the growth of the Arista mine, the growth of this large epithermal system and the growth of Gold Resource Corporation."
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. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has 56,626,516 shares outstanding, zero warrants, zero debt and has returned $109 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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Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com
