Gold Resource Corporation

Gold Producer in Mexico Paying Gold and Silver Dividends

This profile is part of a paid investor education campaign.*


Gold Resource Corporation (NYSE:GORO) is a gold and silver producer, targeting projects that feature low operating costs and high returns on capital to generate meaningful dividends for its shareholders. The Company has two North American mining units in Mexico and Nevada, focused on driving revenue from gold and silver production as well as significant revenue from zinc, lead and copper.

The Company had its seventh consecutive year of profitability in 2017, reporting $4 million in net income. Gold Resource holds a 100 percent interest in a large property position consisting of six properties in Oaxaca, Mexico, including the gold producing Arista and Mirador Mines. Production for the Oaxaca Mining unit in 2017 totaled 28,117 gold ounces and 1,773,263 silver ounces. In Nevada, Gold Resource has acquired five exploration properties, all identified with high-grade gold, open pit potential.  The Isabella Pearl Project is in advanced stage permitting and engineering, and the Company believes construction will begin in 2018 on this open pit, heap leach gold project. Isabella Pearl is expected to more than double the Company’s current gold production profile, having already increased the company’s total proven and probable reserves by 135 percent in April 2018.

The Company has returned over $110 million to shareholders in monthly dividends since commercial production commenced July 1, 2010. This success underscores Gold Resource’s mantra: “Earnings are Opinion, Cash is Fact.” Gold Resource may be the only company to offer shareholders the option of converting their cash dividends into physical gold and silver.

Company Highlights

  • Growth profile: organic, low cost, high margin production
  • 7 consecutive years of profitability
  • Company-wide proven and probable reserves of 335,000 ounces of gold
  • Tight share structure: Only 57.3 million shares outstanding.
  • Shareholder dividend program has paid more than $110 million in monthly dividends since July 2010
  • $75 total cash cost per precious metal gold equivalent ounce sold (2017)
  • $590 all-in sustaining cash cost per ounce (2017)
  • Zero long-term Debt, zero warrants
  • Cash to physical dividend program: one ounce .999 fine gold and silver GRC Eagles rounds; take delivery or send physical to vault of your choice
  • Focused on mining-friendly jurisdictions in North America
  • High-grade gold and silver exploration potential on multiple properties ranging from Oaxaca, Mexico to Nevada, USA

Oaxaca Mining Unit: Gold Production and Exploration in Mexico

Gold Resource Corp. controls six properties in Oaxaca and together they total 684 square kilometers (264 square miles), including over 55 kilometers (34 miles) of the San Jose structural fault corridor. All six properties are all within trucking distance of the processing facilities at the El Aguila Project.

The Arista and Mirador Mines

Gold Resource Corporation - Gold Producer in Mexico Paying Gold and Silver Dividends
The Aguila Mill

The El Aguila Project is located in the San Jose de Gracia Mining District of Oaxaca, Mexico and includes the Arista underground mine which produces gold and silver as well as copper, lead and zinc. The property covers 20,055 hectares (49,550 acres) and mineralization at El Aguila occurs as structurally-controlled epithermal deposits in veins and stockwork zones.  Epithermal deposits are typically high-grade, near-surface (low-cost) deposits—the main focus of Gold Resource’s growth strategy.

Low-Cost, High-Grade Production

Gold Resource commenced production at the Arista Mine in March 2011.

All of the ore from the Arista Mine is processed near the mine site through the El Aguila mill’s flotation circuit.  This 1,500 tonne per day production circuit produces three separate concentrates.

The Mirador Mine, located at the Company’s Alta Gracia property, commenced production in late 2016.  Ore from the Mirador Mine is trucked approximately 16 kilometers (10 miles) to the El Aguila mill, where it is processed through an agitated leach circuit.  The Company targets processing an initial 150 tonnes per day through this oxide circuit.

Reserves and Resources

Proven and Probable Reserves (as of year-end 2017) at the Company’s Oaxaca Mining Unit total approximately 2.5 million tonnes containing 142,400 ounces of gold and 10.93 million ounces of silver. In addition to these precious metal reserves, Gold Resource has also reported proven and probable base metal reserves of 2.4 million tonnes grading 0.3% copper, 1.4% lead and 4.6% zinc.

Proven and Probable Reserves (as of year-end 2017) at the Company’s Nevada Mining Unit total approximately 2.7 million tonnes containing 192,600 ounces of gold (2.22 gram per tonne average).

The Focus of Exploration

Gold Resource announced their most recent expansion of the Arista Mine’s Switchback vein system on January 23, 2018.  This portion of the Arista mine now has a strike length of over 900 meters and remains open in all directions. These latest drill intercepts at Switchback include 11 meters grading 4.19 g/t gold, 114 g/t silver, 0.43 percent copper, 0.98 percent lead and 5.53 percent zinc.  The Company plans to drill the open extensions of the Switchback vein system in 2018.


“This latest round of drill results from Switchback continues to define, as well as expand, this impressive polymetallic vein system comprised of multiple echelon veins,” stated Barry Devlin, Vice President of Exploration. “Our primary exploration goal is to continue expanding the Switchback epithermal vein system in the Arista Mine.”

Gold Resource’s Discoveries

In April 2015, Gold Resource discovered additional new high-grade polymetallic veins at the far northeastern margin of the Arista deposit about 50 meters from the currently-producing high-grade Vein 3, including the “Viridiana” with drill intercepts of:

  • 4 meters grading 9.29 g/t gold, 957 g/t silver, 1.70 percent copper, 4.15 percent lead and 5.60 percent zinc; and
  • 6 meters grading 5.72 g/t gold, 2,060 g/t silver, 2.62 percent copper, 4.65 percent lead and 10.65 percent zinc.

In January 2016, while testing the extensions of the Viridiana vein, the company discovered an additional high-grade vein to the northeast called Marena. Hole 515100 intercepted 3.34 meters grading 12.05 g/t gold, 150 g/t silver, 0.74 percent copper, 7.62 percent lead and 24.40 percent zinc, including 0.74 meters grading 37.50 g/t gold, 178 g/t silver, 1.54 percent copper, 12.65 percent lead and 30.45 percent zinc.

Alta Gracia Property: Exploration of High-Grade Mineralization

The Alta Gracia property hosts the Mirador mine and is located 16 kilometers (10 miles) northwest of the Arista Mine within the San Jose Structural Corridor. The property was the site of historical small-scale artisanal mining with only limited historical exploration and includes the historic Mirador underground mine. Several high-grade precious and base metal veins with similar geology to the Arista deposit have been discovered at Alta Gracia.

In July 2015, Gold Resource reported high-grade exploration drill results from Alta Gracia including Hole 4150006 at the Mirador vein which returned 4.01 meters grading 2.52 g/t gold and 595 g/t silver. A second Mirador vein intercept in the hanging wall returned 2.12 meters grading 1.74 g/t gold and 493 g/t silver. Previous high grade Mirador vein drill intercepts from January 2015 included 5.06 meters grading 1.53 g/t gold and 1,383 g/t silver, and 8.58 meters grading 1.34 g/t gold and 700 g/t silver.

In 2017, Gold Resource conducted further drilling on the property, targeting four primary vein structures which outcrop at surface. Drill results highlights from this program included 1.29 meters grading 4.33 g/t gold and 1,710 g/t silver, and 1.47 meters grading 2.29 g/t gold and 708 g/t silver.

Nevada Mining Unit:  Near-Term Gold Production and Exploration in Nevada


Gold Resource has acquired five properties in south central Nevada’s Walker Lane mineral belt, controlling approximately 11,979 hectares (29,600 acres) of land holdings.  All five properties are within close proximity to one another, which allows the Company to easily share equipment, facilities and management between the properties.

Isabella Pearl 

Gold Resource acquired the “Isabella Pearl” project in August 2016, located in Mineral County, Nevada, it covers approximately 3,642 hectares (9,000 acres). The project is in advanced stage permitting and engineering, and the Company hopes to make a production decision as soon as possible to advance this potential low-cost, heap leach gold project. 

The company has targeted production ranges from 20,000 to 30,000 gold ounces in its first year of production and 30,000 to 40,000 gold ounces annually in years two and beyond. Working towards production, the Company has already secured a draft environmental assessment, operations plan, water pollution control permit, water rights, as well as conveying and crushing equipment.

A number of advanced stage permits for Isabella Pearl have already been acquired, and the project has a low estimated capital expenditure, with initial assessments standing between US$25-30 million.

An independent third-party report found Isabella Pearl has two high-grade potential pits in close proximity. Metallurgical testing conducted by McClelland Laboratories Inc. found over 80 percent crushed rock recovery.

In April 2018, Golden Resource increased its collective reserves by 135 percent when it announced the maiden mineral resource for the Isabella Pearl project. The newly released report indicates that the property hosts proven and probable reserves of 2.69 million tonnes grading 2.22 g/t gold and 13 g/t silver, which equates to 192,600 gold ounces and 1.12 ounces of silver.

Mina Gold

Gold Resource Corporation acquired the “Mina Gold” property in August 2016, located in Mineral County, Nevada.  Mina Gold is located approximately 27 kilometers (17 miles) east of the Company’s Isabella Pearl project.  A historic third-party mineralized material estimate for Mina Gold estimates 1.6 million tonnes grading 1.88 gram per tonne gold.  The Company is planning an exploration program at Mina Gold with a goal of defining enough mineralization to justify a low-cost, heap leach project.  The Mina Gold property covers approximately 334 hectares (825 acres).

East Camp Douglas

In January 2017 Gold Resource acquired the “East Camp Douglas” gold property in Mineral County, Nevada.  The East Camp Douglas property covers an area of approximately 2,145 hectares (5,300 acres) consisting of 277 unpatented claims, 12 patented claims and an additional 81 hectares (200 acres) of fee lands.

County Line

Gold Resource acquired the “County Line” property in March 2018.  The property covers an area of approximately 429 hectares (1,060 acres) consisting of 53 unpatented lode mining claims and one unpatented placer mining claim in Mineral and Nye counties, Nevada.  The Company staked 63 additional unpatented claims around the property to strengthen the land position and exploration potential.  The total land package consists of 939 hectares (2,320 acres).  The property is located within close proximity, approximately 23 kilometers (14 miles) northeast, of the Company’s Isabella Pearl Project.

Isabella Pearl

The Isabella Pearl project is nearing production and has targeted production ranges from 20,000 to 30,000 gold ounces in its first year of production and 30,000 to 40,000 gold ounces annually in years two and beyond. Working towards production, the Company has already secured a draft environmental assessment, operations plan, water pollution control permit,water rights, as well as conveying and crushing equipment.

A number of advanced stage permits for Isabella Pearl have already been acquired, and the project has a low estimated capital expenditure, with initial assessments standing between US$25-30 million.

An independent third-party report found Isabella Pearl has two high-grade potential pits in close proximity. Metallurgical testing conducted by McClelland Laboratories Inc. found over 80 percent crushed rock recovery.

Third-party proven and probable reserves for two adjacent high-grade pits outline 2.7 million tonnes at 2.18 g/t gold average and a total of 191,400 gold ounces. The Isabella pit averages at 1 g/t gold, while the Pearl pit averages 3.7 g/t gold, including a pit core grading at approximately 5 g/t gold. Furthermore, there are additional targets for exploration along Isabella Pearl’s structural trend.


Jason Reid: CEO, President & Director

Jason Reid was appointed Company CEO October 1, 2013 and also serves as Company President and as a director. Jason Reid was appointed President of the Company in July 2010 and also served as Vice President of Corporate Development from January 2008 to July 2010. He was named to the Board of Directors in 2010. Jason has been with the Company since it was a private Company and helped take it public in Sept of 2006 with its self-underwritten “IPO”. Jason was part of a management team that took Gold Resource Corporation from an exploration stage company, to a development stage company, and finally to the gold and silver dividend paying producer that Gold Resource Corporation is today. Prior to joining the Company Jason was the founder and president of two successful businesses he ran for 13 years. Jason holds a Bachelor of Science degree (1997) in Anthropology/Archeology from Fort Lewis College, Durango, Colorado.

Rick Irvine: Chief Operating Officer

Rick is a Mining Engineer with 22 years of industry experience spanning Canada, Mexico, Central and South America. Rick has contributed to the start-up of three new mining operations in Bolivia, Argentina and Mexico. He holds a BSc in Geology from the University of New Brunswick and a BSc. in Mining Engineering from Queen’s University, Kingston, Ontario, Canada.

John Labate: Chief Financial Officer

Mr. Labate is a seasoned executive with over thirty years of financial management and accounting experience. From August 2008 to February 2012, he served as Senior Vice President and Chief Financial Officer of Golden Star Resources Ltd., a gold mining company with securities listed on the NYSE American and TSX. Prior to that, from March 2004 to August 2008 he was Vice President and Chief Financial Officer for Constellation Copper Corporation, a copper mining company with securities formerly traded on the TSX. Prior to March 2004, Mr. Labate held senior financial management positions in mining and technology companies, including chief financial officer positions at Crown Resources Corporation and Applied Optical Technologies. Mr. Labate received a bachelor’s degree in Accounting from San Diego State University.

Barry Devlin: Vice President of Exploration

Mr. Devlin has 30+ years of professional experience in managerial phases of exploration and mine geology. He has participated in the discovery, acquisition and development of numerous mineral deposits including extensive experience in epithermal gold-silver (high and low sulfidation) systems and porphyry copper gold skarns. Prior to joining the Company, Mr. Devlin was Endeavour Silver Corporation’s Vice President Exploration. He holds a BS degree with honors in Geology, 1981, and a Masters in Geology, 1987, from the University of British Columbia, Vancouver, Canada.

Greg Patterson: Vice President Corporate Development

Greg Patterson is VP Corporate Development, a position he has held since October 2013. Since joining the Company in 2010, Greg has managed investor relations and participated in overall corporate strategy. Prior to joining the Company, Greg spent 15 years in marketing and territory sales management for two manufacturers of precision laboratory instruments. Greg holds a Bachelor’s degree in Environmental Biology (1991) from the University of Colorado.

Jessica Browne: Vice President Legal Affairs, General Counsel and Corporate Secretary

Jessica Browne is Vice President Legal Affairs, General Counsel and Corporate Secretary. Since joining the company in June 2011, she has been responsible for overseeing its legal and regulatory matters. Prior to working as in-house legal counsel, Jessica spent nearly ten years in private law practice in the Denver area, focusing on mergers and acquisitions, general corporate and securities law. Jessica received a Master of Science Degree in Taxation Law from the University of Denver in 2005, a Juris Doctor from the University of Colorado School of Law in 2001 and a Bachelor of Science in Business Administration summa cum laude in 1997 from the University of Texas Dallas.

Bill Conrad: Chairman of the Board

Bill M. Conrad currently serves as Chairman of Gold Resource Corporation. Mr. Conrad has held executive management positions with several public companies during the past 15 years, including Wyoming Oil & Minerals, Inc., New Frontier Energy, Inc., Gold Capital Corporation, Wall Street Racing Stables, Inc., Consolidated Capital of NA, Inc. and Synergy Resources, Inc. Mr. Conrad’s duties with these companies primarily focused in the areas of financial management and corporate development.

Mr. Conrad is currently a Director of PetroShare Corp., a Colorado based development stage oil and gas exploration company.

Dr. Gary Huber: Director

Dr. Huber is an experienced mining executive bringing over 35 years of diversified natural resource experience to the Board. He holds a Ph. D from the Colorado School of Mines. His past industry experience includes: president and CEO of Neutron Energy Inc., a private uranium development company, founder, CFO, and director of Canyon Resources Corp, a public exploration and mining company which operated 3 precious metal mines in the Western United States, president and director of CR Minerals Corporation, an industrial minerals mining and processing subsidiary of Canyon Resources, director of Capital Gold Corp., a public precious metal mining company operating in Mexico (which was merged into Gammon Gold) and manager of IRC Capital Group, an investment arm of International Royalty Corporation. He was also formerly a director of the Denver Gold Group, chairman of the Society of Economic Geologists’ Investment and Audit Committees and chairman of the Audit Committee of the Society of Mining, Metallurgy and Exploration. He is a Utah registered Professional Geologist. Dr. Huber is currently a Director of UR-Energy, a junior uranium mining company.

Alex Morrison: Director

Mr. Morrison is a Chartered Professional Accountant with 30 years of mining industry experience. Mr. Morrison has held senior executive positions at a number of mining companies, including Vice President and Chief Financial Officer of Franco Nevada Corporation (2007 to 2010). Mr. Morrison held increasingly senior positions at Newmont Mining Corporation, including Vice President, Operations Services and Vice-President, Information Technology (2002 to 2007). Prior to that, Mr. Morrison was Vice President and Chief Financial Officer of NovaGold Resources Inc., Vice President and Controller of Homestake Mining Company and held senior financial positions at Phelps Dodge Corporation and Stillwater Mining Company. Mr. Morrison began his career with PricewaterhouseCoopers LLP after obtaining his Bachelor of Arts in Business Administration from Trinity Western University. Mr. Morrison currently sits on the Board of Directors of Detour Gold Corporation, Taseko Mines Ltd. and Gold Standard Ventures.

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