Gold Resource Corporation Reports 2015 $3.1M Net Income and Five Consecutive Years of Profitability

Gold Resource Corporation (NYSE:GORO) announced 2015 year-end proven and probable mineral reserves of approximately 1,644,500 tonnes containing 127,700 ounces of gold and 8,569,700 ounces of silver for its Arista underground mine on its Aguila Project.
As quoted in the press release:

In addition to these reserves, the Company announced aggregate mineralized material totaling 819,700 tonnes from the Switchback vein system and its Alta Gracia property. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in 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.
Proven and probable reserves totaled 1,644,500 grading 2.41 grams per tonne (g/t) gold and 162 g/t silver. Proven tonnes totaled 1,155,200 grading 2.59 g/t gold and 178 g/t silver, with probable tonnes totaling 489,300 grading 2.01 g/t gold and 124 g/t silver. The reserve report also estimates the recovery of significant base metals from the Arista mine consisting of 3,947 tonnes (8.7 million pounds) of copper grading 0.3%, 15,820 tonnes (34.9 million pounds) of lead grading 1.3% and 47,773 tonnes (105.3 million pounds) of zinc grading 3.5% (based on 2015 actual average copper, lead and zinc recoveries of 80%, 74% and 83% respectively). Revenue generated from base metal sales is used to offset the Company’s cost of precious metal production.

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

We are pleased to see the tonnage in the proven and probable category once again expand over last year with this latest year-end reserve update for the Arista mine. Although this year’s reserve report shows a reduction in silver, which resulted as a function of grade and lower metal price assumptions, overall the epithermal system at the Arista deposit continues to impress with exploration defining and holding a three plus year mine life, as it has since the maiden reserve report was prepared on December 31, 2013. Prior to this date, the Company produced from Arista since early 2011 without an official reserve report. It is difficult to drill out in front of an operating underground mine with requirements including drill hole spacing to comply with the proven and probable category in a reserve report as demonstrated by these results. It is exciting to watch the vein systems at the Arista mine continue to grow with the Viridiana vein discovery at the Arista vein system in 2015, and the growing potential at the Switchback vein system with mineralized material increases in both tonnage and grade estimates. Exploration work planned for 2016 will focus primarily on the expansion of both vein systems.

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