GORO--looks good to me, any thoughts? Bought last week:
Gold Resource Corporation Increases Ounces at Its El Aguila Projectin Oaxaca, Mexico
Oct 30, 2007 10:38:40 (ET)
DENVER, CO, Oct 30, 2007 (MARKET WIRE via COMTEX) -- Gold Resource Corporation (GRC) (GORO, Trade ), (FRANKFURT: GIH) announced results from an internal analysis of its drilling to date at its 100% owned El Aguila Project in Oaxaca, Mexico. Estimates of mineralized material equal 1,836,497 tonnes grading 2.57grams/t gold (Au), 188.24 grams/t silver (Ag), 1.08% Lead (Pb), 2.91% zinc (Zn), 0.26% copper (Cu). This equates to 773,355 gold equivalent (AuEq) ounces, as detailed below. This mineralized material does not meet the SEC definition of Proven and Probable Reserves but would be equivalent to an estimate of Inferred Resource in Canada. Gold Resource expects to commence production at its El Aguila Project mid-2008, subject to obtaining remaining permits and regulatory approvals, completing necessary financings and equipment deliveries.
Gold Resource Corporation's president William W. Reid stated, "We are pleased to have more than doubled our April 11, 2007 mineralized material estimate of 290,500 gold equivalent ounces to 773,355 gold equivalent ounces. Equally, based on the fact that our drilling continues to confirm and expand this very robust, high-grade epithermal system, we feel the exploration potential at El Aguila is great and may soon increase our gold equivalent estimate to over 1 million ounces."
The mineralized material number is an in-place number without regard to recoveries. Gold Resource, like many in the industry, subscribe to the use of gold equivalent or AuEq as a means to present the aggregate value of polymetallic ore. Gold equivalent valuation quantifies the base metal percentages and precious metal ounces of polymetallic ore into one value. This calculation converts the metals quantity into its dollar value and converts that dollar value back into an equivalent gold value. Gold equivalent is a valuation calculation that places the emphasis on the total dollar value for polymetallic ore. The following mineral values were used in this gold equivalent conversion: gold at $650/ounce, silver at $13/ounce, lead at $1.60/pound, zinc at $1.30/pound and copper at $3.60/pound.
Gold Resource Corporation's April 11 production decision was based on a targeted initial three year mine life and a capital payback of 6 months. Because of the increase in total ounces along with certain higher grade areas, such as El Aire Vein #2 which averages 0.83 AuEq oz/tonne and La Arista Vein #1 which averages 0.63 AuEq oz/tonne, GRC now targets 6 years of mine life with annual production targets of gold or gold equivalent levels as follows:
Ounces in Gold (Au) or Gold Equivalent (AuEq)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
70,000 100,000 120,000 120,000 120,000 120,000
Gold Resource Corporation continues to move forward on all fronts as an emerging low cost gold producer |
