GOLD RESOURCE CORPORATION ACHIEVES 2017 ANNUAL GOLD AND SILVER PRODUCTION TARGETS
COLORADO SPRINGS – January 22, 2018 – Gold Resource Corporation (NYSE American: GORO) (the “Company”) today announced preliminary 2017 year-end and fourth quarter mill production results. The Company produced approximately 28,117 gold ounces and 1,773,263 silver ounces for the 2017 year, which met its annual gold and silver production target ranges. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $110 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.
The Company’s 2017 annual production targets were 27,500 gold ounces and 1,850,000 silver ounces, plus or minus a 5% range. Preliminary production results for 2017 of approximately 28,117 gold ounces and 1,773,263 silver ounces achieved the targeted range with gold reaching the upper end of the target. Fourth quarter gold and silver production totaled approximately 9,209 ounces and 555,550 ounces, respectively. Preliminary annual base metal production included approximately 1,141 tonnes of copper, 5,365 tonnes of lead and 16,301 tonnes of zinc.
“Our Oaxaca Mining Unit’s operations team delivered another year of solid production results for 2017,” Gold Resource Corporation CEO and President, Mr. Jason Reid, stated. “In addition to achieving annual precious metal production targets, the team successfully targeted and mined base metal rich areas of the Arista mine to take advantage of multi-year high base metal prices which generated substantial additional revenue for the year. The team also executed on the development of the Arista Mine’s Switchback vein system, delivering on our goal to achieve over one year of Switchback mine development prior to commissioning bulk tonnage mining techniques. With five levels now developed at Switchback, the Company expects to begin first stoping operations during the first quarter of 2018.”
Mr. Reid continued, “2017 was also a successful year for the Company’s Nevada Mining Unit, where the Company acquired the highly prospective 5,500 acre East Camp Douglas exploration property, and added a significant number of additional claims to the Isabella Pearl Project, which now encompasses over 9,000 acres. Our Nevada team continues to work hard pushing the Isabella Pearl Project’s permitting forward, with a goal of pouring first gold by the end of 2018 subject to receiving the requisite permits in the near future.”
Full financial results for the fourth quarter and fiscal year-end 2017 will be available in the Company’s annual report on Form 10-K to be filed with the Securities and Exchange Commission.
Solid year for GORO. Normally moving slower than I like, but the one thing I have to remember. They have done much additional development to set up for the future, moving several property's forward, plus purchased several new property's, all from cash flow and never diluted the shareholders. Compare their operation now, to when they were at $31 and the former pales. There still at 56 Million OS. What this has done is conserved their resources, all with more pent up catalyst energy to spring forward when the price of PS's moves hard. They will be ready I believe to take advantage. The largest catalyst will be getting the final permits for Isabelle Pearl in Nevada.
Few thoughts on Isabelle Pearl. Permitting review was slowed down, due to the personnel attending to the fires. GORO has an office in NE and has had much contact with permitting officials to the point, they have already ordered and paid for highest lead time equipment. Much of the permitting, drilling and property development was done by the former owner leaving GORO with a low risk high grade project needing final EIS approval.
Company quote "Our Nevada team continues to work hard pushing the Isabella Pearl Project’s permitting forward, with a goal of pouring first gold by the end of 2018 subject to receiving the requisite permits in the near future"
Isabella Pearl will double GOROS gold production and with nearly 2gpt grades open pit heap leach operation, costs will be so low, cash flow will be more than GOROS entire Mexico operation puts out now. Couple this with a higher PM prices, Switchback and Alta Gracia coming on line, and you have an exciting, solid, low risk high yield investment.
Going forward, I expect them to get back to paying sector leading dividends. All this is why I have been saying 2018 is the year for GORO.
While I was early, it was a good low risk story to carry. I did load up under $3 and some as low as $1.15 Probably will carefully add as I've taken profits along the way. Watch for the IP permitting to get this moving.
Checkmate28
