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Highlights

  • Three Sisters area shows a 307% increase in mineral resources from 2023.
  • Gold equivalent values reach up to 36.10 g/t, indicating high-grade intersections.
  • New vein systems' strategic location could lower production costs.

Gold Resource (NYSE American: GORO) has announced positive results from its 2024 exploration drilling program at the Don David Gold Mine in Oaxaca, Mexico. The exploration focused on the Three Sisters and Gloria vein systems, revealing significant mineral discoveries. A total of 23 underground drill holes were completed, totaling 7,671 meters, highlighting high-grade intersections with gold equivalent values of up to 36.10 g/t and NSR values reaching $2,314 per tonne.

One of the standout results from the drilling program was a 307% increase in the mineral resources of the Three Sisters area compared to 2023. This growth has contributed to a 10% overall increase in the company’s estimated Mineral Resources in the Life of Mine (LOM) plan. Notably, measured and indicated resources within the plan have shown an 88% conversion rate, demonstrating significant success in resource definition.

In addition to the increase in resources, the newly discovered vein systems are located near the current mine portal at higher elevations. This proximity is expected to result in reduced haulage and production costs, which could enhance the overall economics of the operation.

However, the exploration program also highlighted a 56% decrease in measured and indicated resources within the Switchback zone and a 17% decrease in the Arista zone. These declines may require additional investment for further exploration and development, including the acquisition of new equipment.

Despite these challenges, the program’s positive findings provide a promising outlook for Gold Resource’s future operations at Don David. With total resources estimated at 3,160,000 tonnes and an 80% conversion rate, the project’s potential appears substantial.