Gold Resource Corporation today announced it has received the final mine permit (blasting permit) to begin development and production from its Oaxaca Mining Unit's Alta Gracia Project. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $108 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 Alta Gracia Project is located approximately 15 kilometers northwest of the producing Arista mine and Aguila Mill complex, all of which are located along a larger 55 kilometer north 70 west mineralized structural fault corridor the Company controls. With the final Alta Gracia mine permit now in hand, the Company is rapidly moving forward with a goal of drawing first mineral by year-end 2016 or the first quarter of 2017. The Company expects development time at Alta Gracia to be rapid, as the existing historic mine infrastructure can be leveraged and improved.
Oxide mineralization from Alta Gracia is expected to be trucked to and processed in the Aguila Mill's currently idle agitated leach circuit. Initial mining rates target 100 to 200 tonnes per day and an initial mill processing rate of 150 tonnes per day. The Alta Gracia mine has the potential to increase the Company's future annual silver production by approximately 500,000 silver ounces and 1,000 gold ounces. At year-end 2015, the Company estimated 185,000 tonnes in the mineralized material category grading 321 grams per tonne (g/t) silver and 0.55 g/t gold.
"We are pleased that the Company's Oaxaca Mining Unit business plan of having multiple mines feed a strategically located mill is well underway with the development of our now fully permitted Alta Gracia mine," stated Mr. Jason Reid, CEO and President of Gold Resource Corporation. "We were able to advance Alta Gracia forward much faster with this business plan, as we only have to justify the mining and trucking costs to haul mineral to our Aguila mill for processing. This shared mill approach eliminates the need and capital required to build a mill at each of our six properties. Furthermore, it targets moving a property into production sooner, at less cost and may add to our production profile and longevity of operations. We are very excited to soon have Alta Gracia as our second producing mine within our Oaxaca Mining Unit."