Goro Nice Find $ Goro Double Eagle Coin Dividends
Gold Resource Corporation discovered a high-grade vein system at its El Rey property during its 2008 drill program. The veins are predominantly gold with some silver (no base metals).
Highlights from previous drilling include:
-- Mineralization within 100 meters of the surface
-- Vein drill intercepts include (5 holes):
1.0 m of 132.5 g/t Au
1.4 m
of 55.3 g/t Au
9.0 m of 19.4 g/t Au including
-- 1 m of 66.4 g/t Au
-- 1 m of 31.8 g/t Au
-- 1 m of 30.3 g/t Au
-- 1 m of 29.1 g/t Au 1 m of 23.7 g/t Au
To better evaluate the potential of the El Rey property the following program has been initiated:
-- Refurbish and extend existing shaft to the 70 meter level below the
surface
-- Drive two development drifts each 150 meters along the two gold veins
encountered from the previous 2008 drill program
-- Establish underground drill stations for advanced exploratory drill
program
-- Use crosscuts to explore for additional veins
We believe this program will allow development and exploration of El Rey to proceed simultaneously, leading to accelerated production if and when a positive decision is made to establish high-grade gold production at El Rey.
The explosives permit for El Rey was approved June 1, 2011 and the powder magazine construction is underway. Physical work has begun to prepare the shaft site and pump out existing water, and a hoist and headframe are being sourced and purchased along with additional equipment. In addition to exploration, this approach will allow the Company to view the character of the veins, the competency of the wallrock, and gain bulk samples for additional metallurgical testing. Previous metallurgical El Rey test work resulted in 94% gold and 75% silver recoveries.
Gold Resource Corporation's President, Mr. Jason Reid, stated, "El Rey's high-grade gold ore would be processed in the agitated leach circuit at the El Aguila mill adding to our production profile. It would also be an ideal source of gold and silver for producing Gold Resource Corporation's Double Eagle coins, which could potentially be used for future in-kind dividend distributions."
A similar program at the Company's Alta Gracia property is underway. Three high-grade polymetallic veins that outcrop on the surface have been discovered near historic workings. With site preparation underway, the Company plans to drift on these parallel veins by constructing three new adits. The purpose is to develop the veins 40-50 meters below the surface to test for mineral continuity, and to crosscut below the historic workings to test for continuation of mineralization laterally and at depth. These small scale exploration drifts could generate ore for batch scale metallurgical testing, as well as host underground drill stations for deeper exploratory drilling. This underground drilling will be in addition to the surface drilling currently underway.
