COLORADO SPRINGS, Colo., March 02, 2020 (GLOBE NEWSWIRE) -- Gold Resource Corporation (NYSE American: GORO) (the “Company”) updated its annual reserve estimates as of December 31, 2019, increasing its consolidated proven and probable gold reserve grade by 20.1% and consolidated proven and probable gold reserve ounces by 1.1%.  Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company has returned $113 million back to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

As of December 31, 2019, proven and probable reserves at the Nevada Mining Unit’s Isabella Pearl Mine totaled 2,247,400 tonnes grading 3.05 grams per tonne (g/t) gold.  Proven and probable reserve gold ounces included in the reserve report increased year-over-year by 2.5% to 220,100 ounces, an increase of 5,300 gold ounces, while gold grade increased 33.8% to 3.05 g/t.  This addition maintains a more than four-year mine life estimate at the project.  Company management is optimistic it can continue to expand mine life at the Isabella Pearl Project by discovering additional neighboring deposits at exploration targets such as Scarlet along the project’s 10-kilometer property trend.

As of December 31, 2019, proven and probable reserves at the Oaxaca Mining Unit totaled 2,831,600 tonnes grading 1.97 g/t gold and 122 g/t silver, equating to 179,300 gold ounces and 11,096,400 silver ounces.  The reserve report also includes significant base metals from the Arista Mine consisting of 11,600 tonnes of copper grading 0.4%, 45,500 tonnes of lead grading 1.7% and 133,100 tonnes of zinc grading 4.8%.  Mine life at the Company’s Oaxaca Mining Unit is estimated at four years based on a mill throughput capacity of 2,000 tonnes of ore per day.  

“2019 exploration drill results incorporated into the latest December 31, 2019 reserve reports for both the Nevada and Oaxaca Mining Units demonstrate significant exploration potential,” stated Mr. Barry Devlin, Vice President of Exploration for Gold Resource Corporation.  “Deep drilling at Isabella Pearl significantly increased the reserve gold grade while adding ounces to the project. We were also successful with our first drill campaign at the Scarlet target adjacent to the producing Isabella Pearl mine.  At our Oaxaca Mining Unit, the Arista mine’s Switchback vein system continued to expand as we drilled the extensions of this powerful epithermal vein system.  The Soledad vein now has an average width of 11 meters, which is an important driver aiding mine operations in delivering the targeted 2,000 tonnes per day to the process mill.  Exploration goals for Nevada in 2020 include a strong focus on the Scarlet target at Isabella Pearl, as well as a first drill program at the East Camp Douglas property targeted to commence mid-year.  In Oaxaca, 2020 will primarily continue to focus on the extensions of the Arista mine’s vein systems.”

“Our exploration team had another great year defining and expanding the mineralized extensions of our producing mines in both Nevada and Oaxaca,” stated Mr. Jason Reid, President and CEO of Gold Resource Corporation.  “With construction and commissioning of a new mine being a capital-intensive process during the year, our exploration team delivered great results with a relatively modest $3.6 million 2019 exploration budget.  The Isabella Pearl mine’s average life of mine gold grade increased from 2.28 grams per tonne to 3.05 grams per tonne, a very attractive grade for any open pit mine.  For 2020, we are also excited to follow up on the first successful round of drilling at the Scarlet target, as this has the potential to become the Isabella Pearl project’s next gold deposit along our 10-kilometer target rich property position.  We are also eager to continue testing the extensions of the Arista mine in Oaxaca with dedicated exploration drifts to access areas we have never been able to drill before due to limited drill station locations.  July 2020 will mark ten years that the Company has been mining in Oaxaca, and it has been nothing short of amazing to watch the continued expansion of this epithermal deposit over the years.  A decade of mining later we continue to believe this large and powerful epithermal system has tremendous potential to grow.”      

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Below is a summary of the reserve report for December 31, 2019:

GOLD RESOURCE CORPORATION PROVEN AND PROBABLE RESERVES
As of December 31, 2019

Notes to the 2019 P&P reserves:

1. Metal prices used for P&P reserves were $1,306 per ounce of gold, $16.32 per ounce of silver, $2.83 per pound of copper, $0.99 per pound of lead and $1.27 per pound of zinc.  These prices reflect the three-year trailing average prices for gold, silver, copper, lead and zinc.
2. Precious metal gold equivalent is 80.03:1 using gold and silver only to calculate gold equivalencies.
3. A breakeven Net Smelter Return (“NSR”) cutoff grade of $76 per tonne was used for estimations of P&P reserves at the Arista Mine.  The term “cutoff grade” means the lowest NSR value considered economic to process.
4. No appreciable amounts of base metals are present in the veins identified to-date at the Mirador Mine at the Alta Gracia project.  A breakeven cutoff grade of 2.50 g/t gold-equivalent (AuEq) was used for proven and probable reserves at the Mirador Mine using gold and silver only to calculate gold equivalencies.
5. Mining, processing, energy, administrative and smelting/refining costs were based on 2019 actual costs for the Oaxaca Mining Unit.
6. Arista Mine metallurgical recovery assumptions used were 78% for gold, 91% for silver, 78% for copper, 78% for lead and 81% for zinc.  Mirador Mine metallurgical recovery assumptions used were 87% for gold and 88% for silver.  These recoveries reflect 2019 actual average recoveries for the Aguila and Alta Gracia projects.
7. P&P reserves are diluted and factored for expected mining recovery.
8. Minimum mining width for P&P reserves is 1.5 meters for the Arista and Mirador underground mines.
9. For the Isabella Pearl Mine, the quantities of material within the designed pits were calculated using a cutoff grade of 0.44 Au g/t.
10. Mining, processing, energy, administrative and smelting/refining costs were based on 2019 actual costs for the Isabella Pearl Mine.
11. Metallurgical gold recovery assumptions used for the Isabella Pearl project were 81% for crushed ore and 60% for ROM ore.  These recoveries reflect predicted average recoveries from metallurgical test programs.
12. Isabella Pearl P&P reserves are diluted and factored for expected mining recovery.
13. Figures in tables are rounded to reflect estimate precision and small differences generated by rounding are not material to estimates.

GOLD RESOURCE CORPORATION MINERALIZED MATERIAL
As of December 31, 2019

Notes to the 2019 mineralized material:

1. Mineralized Material is exclusive of P&P Reserves.
2. Metal prices used for mineralized material were $1,306 per ounce of gold, $16.32 per ounce of silver, $2.83 per pound of copper, $0.99 per pound of lead and $1.27 per pound of zinc.  These prices reflect the three-year trailing average prices for gold, silver, copper, lead and zinc.
3. A breakeven Net Smelter Return (“NSR”) cutoff grade of $76 per tonne was used for estimations of mineralized material.  The term “cutoff grade” means the lowest NSR value considered economic to process.
4. No appreciable amounts of base metals are present in the veins identified to-date at the Alta Gracia project including the Mirador Mine, and the Margaritas project.  A breakeven cutoff grade of 2.50 g/t gold-equivalent (AuEq) was used for mineralized material at the Alta Gracia and Margaritas projects using gold and silver only to calculate gold equivalencies at a ratio of 80.03 to 1.
5. Arista Mine metallurgical recovery assumptions used were 78% for gold, 91% for silver, 78% for copper, 78% for lead and 81% for zinc.  Alta Gracia and Margaritas projects metallurgical recovery assumptions used were 87% for gold and 80% for silver. These recoveries reflect 2019 actual average recoveries for the Aguila and Alta Gracia projects.
6. Mineralized material is diluted and factored for expected mining recovery.
7. Minimum mining width for mineralized material is 1.5 meters for the Arista Mine and the Alta Gracia and Margaritas projects.
8. Figures in tables are rounded to reflect estimate precision and small differences generated by rounding are not material to estimates.
9. 100% of the Isabella Pearl project pit contained mineralized material was converted to reserves.

The full reserve report will be available in the near future from the Company’s website using the following link:  http://goldresourcecorp.com/reserve-reports.php.

About GRC:

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company targets low capital expenditure projects with potential for generating high returns on capital.  The Company has returned $113 million back to its shareholders in consecutive monthly dividends since July 2010 and offers its 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.

Contacts:

Corporate Development
Greg Patterson
303-320-7708