Gold Resource Stock

Gold Resource Corporation operates as a producer of dore containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico.

At its Don David Gold Mine, the company has 100% interest in six properties, including two Production Stage Properties and four Exploration Stage Properties, located in Oaxaca, Mexico, along the San Jose structural corridor. Because of their proximity and relatively integrated operations, it collectively refers to the six properties as the Don David Gold Mine. The two Production Stage Properties are the only two of the six properties that make up the Don David Gold Mine that it considers to be independently material at this time. The company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, U.S.A.

Don David Gold Mine

All of the properties that make up the company’s Don David Gold Mine are located in Oaxaca, Mexico, in what is known as the San Jose structural corridor, which runs 70 degrees northwest. The company’s properties include 55 continuous kilometers of this structural corridor, which spans three historic mining districts in Oaxaca. The company was granted concessions from the Mexican federal government to explore and mine its properties in Mexico.

Mexico Production Stage Properties

The operations include the Arista underground mine and the Don David Gold Mine (DDGM) processing facility. The DDGM processing facility produces dore and metal concentrates from ore mined at the Arista Mine. The Arista Mine was expanded in 2016 with the development of the Switchback vein system. The Arista Mine portal is located approximately two kilometers from the processing facility. Alta Gracia is approximately 32 kilometers from the processing facilities. The Arista Mine holds 18 mining concessions aggregating 24,372 hectares. The Arista mine is located in the Sierra Madre del Sur Mountains of southern Mexico in the central part of the state of Oaxaca. The company completed 182 underground diamond drill holes totaling 34,829 meters inside the Arista mine during 2022.

The Arista and Alta Gracia mines include a total of approximately 30,000 hectares of mining concessions, access roads from a major highway, haul roads, a processing facility and adjoining buildings, an assay lab, a depleted open pit, underground mines, tailings facilities, and other infrastructure.

Mexico Exploration Prospects

Within the 55-kilometer-long San Jose structural corridor, in Oaxaca, Mexico, sits a highly prospective ground package. The company intends to advance organic growth and to unlock the value of the mine, existing infrastructure, and the company’s large property position by continuing to invest in exploration and development.

Back Forty Project

The Back Forty Project is an advanced Exploration Stage Property located in Menominee County, Michigan, U.S.A. in the mineral-rich Penokean Volcanic Belt. In 2014, a Preliminary Feasibility Study prepared under Canadian National Instrument 43-101 (NI 43-101) was completed which contemplated an open pit mine and processing operation. In October 2019, Aquila filed a NI 43-101 Feasibility Study which estimated the open pit project would produce 1.1 million gold equivalent ounces over a seven-year mine life. In January 2021, the water permit was revoked due to a technicality related to a contingent condition established in the permit. In 2021, an optimized feasibility study was initiated to address the mine’s footprint, potential for an underground mine, wetland mitigation, and other key construction and design decisions. The company’s property is made up of approximately 1,304 hectares (3,222 acres) of private and public (state of Michigan) mineral lands. The project is centered at latitude 46 degrees 27 North and longitude 87 degrees and 51 West.

Exploration Properties

Margaritas Property

The Margaritas property is made up of the La Tehuana concession, which is approximately 925 hectares, located along the company’s 55-kilometer mineralized trend and adjacent to the Arista mine.

In 2022, the company continued to review results from previous surface drilling, surveying, detailed geological mapping, and rock chip channel sampling for the Margaritas property. The company completed the work required to maintain the claims during 2022, with work focused on analysis of spectral and geophysical information to identify new targets of interest.

Chamizo Property

In June 2011, the company acquired an exploration concession from the Mexican government of approximately 17,898 hectares referred to as Chamizo. In March 2013, the company acquired a property known as Cerro Colorado from Almaden Minerals, Ltd. (Almaden) consisting of approximately 1,860 hectares. The Cerro Colorado property is surrounded by the company’s Chamizo concession, and it includes it as part of the Chamizo property. The Chamizo Property is adjacent to the Alta Gracia Property. Any future production from the Cerro Colorado concession is subject to a 2% net smelter return royalty in favor of Almaden. During 2022, surface mapping and geochemical sampling were begun in the Jabali prospect area.

Fuego Property

In March 2013, the company acquired the Fuego property from Almaden subject to a 2% net smelter return royalty. The Fuego property consists of approximately 2,554 hectares and is located south of the company’s Alta Gracia and Chamizo properties. In 2013, Fuego was included in the property-wide airborne geophysical survey.

Rey Property

The Rey property consists of concessions on the far northwest end of the company’s 55-kilometer mineralized corridor in the state of Oaxaca known as Rey, El Virrey, La Reyna, and El Marquez. The Rey property consists of 2,335 hectares. The company acquired the El Virrey concession from a third-party, and it is subject to a 2% net smelter return royalty. The company obtained the remaining concessions by staking claims and filing for concessions with the Mexican government.

The Rey property is located approximately 64.4 kilometers by road from the Arista mine. Early in 2012, the company completed a small amount of work to finish refurbishing and extending an existing shaft on the property to permit underground exploratory drilling.

Customers

During the year ended December 31, 2022, two customers accounted for 84% of the company’s revenue from DDGM.

Government Regulations and Permits

In connection with mining, milling and exploration activities in Mexico, the company is subject to Mexican federal, state, and local laws and regulations governing the protection of the environment, including laws and regulations relating to the protection of air and water quality, hazardous waste management and mine reclamation, as well as the protection of endangered or threatened species. The government department responsible for environmental protection in Mexico is Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT).

History

Gold Resource Corporation was founded in 1998.