Gold Resource Corporation Acquires Option on Gold Bearing Nevada Property

Gold Resource Corporation (NYSE:GORO) announced it has acquired an option to purchase a gold bearing property in Nevada, USA held by Silver Reserve Corporation, a wholly-owned subsidiary of Infrastructure Materials Corp.
As quoted in the press release:

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.

Gold Resource Corporation’s CEO and President, Jason Reid, stated:

We believe Gold Mesa provides excellent advanced stage gold exploration exposure in an historic and prolific gold producing belt. 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.

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