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Interesting new samples from Gold Resource Corp’s Isabella Pearl mine


Gold Resource Corporation (NYSE: GORO) has had some very interesting results from its exploratory drilling at its Scarlet target, near its Nevada mine, Isabella Pearl, as well as deeper within Isabella Pearl itself. Ore grade intercepts near the surface have revealed 1.03g / tonne not far from the surface. However, it is the samples that GRC has uncovered deeper within Isabella Pearl which make more intriguing reading.

Readers will remember that The Armchair Trader first covered Gold Resource Corp in December 2019. Since then the share price has risen from 4.56 to 5.5 (at close of trading on Friday).

We like GORO because it is debt free, and run by a highly experienced mining team that has plenty of pedigree in the business. Plus it has an operating mine in Mexico already.

Gold Resource Corp – new findings deeper inside Isabella Pearl

What is of most interest within the latest set of findings are the intercepts from deeper within the Isabella Pearl mine itself rather than at the Scarlet testing zone. This includes 25 meters of 18g gold and 84 meters of 8g gold. These are obviously many multiples above the 1g/tonne being mined nearer the surface at the moment.

“This underscores the much higher grade gold we expect to mine and process at our Isabella Pearl mine in the years to come,” explained Jason Reid, President and CEO of Gold Resource Corporation.

Scarlet represents the first of many targets for exploration north-west of the operating Isabella Pearl mine. Gold Resource Corp controls over 10 kilometres of mineralized trend in this area, which is along the Walker Lane Mineral Belt.

The Walker Lane Mineral Belt is considered to be the next big seam for mining in Nevada. It runs on a line between the states of California and Nevada. Copper and silver are also mined here but it has seen the discovery of multi-million ounce epithermal gold deposits. Historically Walker Lane was the site of the 1850s Comstock Lode discovery. Other miners active in the area include Barrick and Kinross, who have production operations at Round Mountain.

We know many investors also value GORO because it is a regular dividend play (Gold Resource Corp has returned over $113 million back to shareholders in consecutive monthly dividends since July 2010), but the latest results out of Nevada seem to indicate there could be something more substantial to come.

Isabella Pearl mining operations

Gold Resource Corp began mining operations at Isabella Pearl back in June 2018, with the first gold being produced from April 2019. The project at Isabella Pearl contains both proven and provable reserves estimated at 2.9m tonnes which equates to 214,000 gold ounces at around 2.28g/tonne.

GRC has both gold and silver mining operations in Mexico. It likes low capital expenditure projects with an emphasis on higher returns. CEO Reid is a highly respected figure within the North American mining community and comes from a family of miners with extensive experience of precious metals mining in the region.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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