Gold Resource Corporation Acquires Option on Gold Bearing Nevada Property
-- Published: Tuesday, 1 December 2015 | Print | Disqus
COLORADO SPRINGS, CO--(Marketwired - Dec 1, 2015) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") acquired an option to purchase a gold bearing property in Nevada, USA held by Silver Reserve Corporation (SRC), a wholly-owned subsidiary of Infrastructure Materials Corp. (TSX VENTURE: IFM) (OTC PINK: IFAM). Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned over $107 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 is referring to the newly-optioned claims as the "Gold Mesa" property, a portion of which includes the gold property historically known as the Clay Peters Project. Gold Mesa covers an area of approximately 1,780 acres consisting of 89 unpatented claims and 3 patented claims in central Nevada's Walker Lane Mineral Belt in Mineral County, Nevada. The property is located 17 miles south-southwest of the Company's Radar and Goose properties and will become the Company's third exploration property in its Nevada Mining Unit. Gold Resource Corporation's Nevada Mining Unit now controls approximately 5,480 acres of exploration lands in south central Nevada's Walker Lane Mineral Belt.
A small portion of the property's claims were mined historically on a very small scale as an underground mine in the early 1900's and as a small open pit mine in the late 1980's. More recently, according to an IFAM news release dated January 16, 2013, surface drilling on the property returned significant gold grades near surface, including 2.42 grams per tonne (g/t) gold over 9.1 meters starting at 7.6 meters down hole and 1.72 g/t gold over 18.3 meters starting at 36.6 meters down hole. These grades are in line with surface samples taken by the Company running as high as 2.51 g/t gold (assayed by ALS USA Inc., Reno, Nevada). The property has potential for a high grade gold open pit, or multiple gold open pits with mineralization at shallow depths below surface. Existing infrastructure includes nearby electricity, road access and potential water from a historic well located on the property. Historical metallurgical test work by N.A. Degerstrom Inc. in 1986 showed up to 88% recovery of contained gold and up to 35% recovery of contained silver obtained by a 35 mesh grind and agglomeration.
Historic drill intercept highlights include;
2.42 g/t Au & 94 g/t Ag over 9.1 m starting 7.6 m down hole, including 8.14 g/t Au & 45 g/t Ag over 1.5 m
1.72 g/t Au over 18.3 m starting 36.6 m down hole, including 8.92 g/t Au& 25 g/t Ag over 3.0 m
2.34 g/t Au over 6.1 m starting 3.0 m down hole
Although there are no work commitments pursuant to the option agreement, the Company is evaluating a spring 2016 drill campaign at Gold Mesa with a goal of extending known gold mineralization through infill and step-out drill holes. If future drill programs are deemed successful, the Company would consider making a production decision as soon as possible.
The Company acquired the option for $121,506 cash and restricted common stock with a market value of $200,000. The option gives the Company the exclusive right to purchase 100% of the property at any time for 36 months for an additional $270,000 cash and restricted common stock valued at $1,000,000 at closing. The property is subject to a net smelter return royalty (NSR) in favor of SRC on future production consisting of a 2% NSR on all claims with no existing royalties (89 unpatented claims and any future unpatented claims staked or acquired within the area-of-interest) and a 1% NSR on the three patented claims. There is an existing 2% NSR on the three patented claims payable to an unrelated third party. The Company has additional rights to purchase back one half of each of the 2% NSR and 1% NSR from SRC subject to certain terms and restrictions and a first right of refusal to purchase the entire NSR upon a proposed disposition by SRC.
"We believe Gold Mesa provides excellent advanced stage gold exploration exposure in an historic and prolific gold producing belt," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "It is very exciting to find a property with drilled high-grade gold open pit potential beginning at a shallow depth, in close proximity to infrastructure and in a mining friendly jurisdiction. If we are fortunate to expand upon the existing high-grade gold drill intercepts, we would be looking to a possible production decision."
Gold Resource Corporation's Vice President of Exploration, Mr. Barry Devlin stated, "Our preliminary review of historic mining and drilling data from Gold Mesa indicates gold mineralization occurs as multiple stockwork vein systems in oxidized and jasperoidal horizons in both intrusive and adjacent sedimentary rocks. There is also substantial spacing between the existing high-grade gold drill intercepts with excellent potential to expand identified gold mineralization on the property."
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 six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,179,369 shares outstanding, no warrants, no long term debt and has returned over $107 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.
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.
Infrastructure Materials Corp. (IFAM), and its affiliates do not accept responsibility for the adequacy or accuracy of this release.
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