Gold Resource Corporation (GRC), together with its subsidiaries, is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico.
The company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA.
Since 2010, GRC has produced gold and silver doré and copper, lead, and zinc concentrates in Oaxaca, Mexico at the company’s subsidiary, Don David...
Gold Resource Corporation (GRC), together with its subsidiaries, is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico.
The company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA.
Since 2010, GRC has produced gold and silver doré and copper, lead, and zinc concentrates in Oaxaca, Mexico at the company’s subsidiary, Don David Gold Mexico S.A. de C.V. (‘Don David Gold Mine’ or ‘DDGM’). The Don David Gold Mine holds six (6) properties which are all located in what is known as the San Jose structural corridor. The company’s properties span 55 continuous kilometers of this structural corridor, which include three historic mining districts in Oaxaca.
On December 10, 2021, the company successfully completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc (the ‘Aquila Transaction’). Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership and leases with the state of Michigan.
Customers
During the year ended December 31, 2023, three customers accounted for 98% of the company’s revenue from DDGM.
Properties
The company classifies its mineral properties into three categories: ‘Production Stage Properties,’ ‘Development Stage Properties,’ and ‘Exploration Stage Properties’. Production Properties are properties for which the company operates a producing mine.
At the company’s 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, the company 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 the company 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, USA. The company does not consider the Back Forty Project to be independently material to the company at this time.
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 north-west. The company’s properties comprise 55 continuous kilometers along this structural corridor, which spans three historic mining districts in Oaxaca.
Production Stage Properties
Arista & Alta Gracia Mines
History: The Arista and Alta Gracia mines are in the regional Tlacolula mining district within Oaxaca State, in southern Mexico.
While the DDGM Arista Mine and Alta Gracia Mine are in the smaller mining subdistricts of San Jose de Gracia and Alta Gracia, respectively, only small-scale artisanal mining was historically conducted in these areas’ subdistricts.
Arista Mine
Background: The Arista Mine holds 18 mining concessions aggregating 24,372 hectares.
Through the end of 2023, the company has drilled a total of 1,794 core holes (both surface and underground) totaling 482,271 meters and 166 reverse circulation holes equaling 14,367 meters, for a total of 1,960 holes totaling 496,638 meters.
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 Arista mine is located in the San Jose de Gracia Mining District in Oaxaca.
Alta Gracia Mine
In 2008, the company was granted claims adjacent to the Margaritas property in the Alta Gracia Mining District by filing three mining concessions known as the David Fracción I, the David Fracción II, and La Herradura, totaling 5,175 hectares.
Exploration Properties
Margaritas Property
The Margaritas property is made up of the La Tehuana concession, which is approximately 925 hectares, located within the 55-kilometer San Jose structural corridor and adjacent to the Arista mine.
In 2023, 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 2023, with work focused on analysis of spectral and geophysical information to identify new targets of interest. The company expects to target a similar amount of work in 2024, along with identifying opportunities to strengthen the company’s relationship in the local communities.
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 the company 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. Results of this work were reviewed and analyzed in 2023 in order to plan additional detailed follow up geologic mapping and target evaluation. Different targets within the Chamizo property will continue to be evaluated in 2024, while also looking to identify opportunities to strengthen the company’s relationship in the local communities to facilitate future work.
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. Geologic mapping and surface sampling have been conducted on the Fuego property, which allows the company to meet the acceptable amount of work required to maintain the claims. The company does not anticipate any significant exploration activities at Fuego in 2024. However, the company does plan to conduct the work required to maintain the claims.
Rey Property
The Rey property consists of concessions on the far north-west end of the company’s 55-kilometer structural corridor in the State of Oaxaca known as El Rey, El Virrey, La Reyna, and El Marquez, totaling 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 kilometers by road from the Arista mine. As of December 31, 2023, the company drilled 48 core holes for a total of 5,273 meters at the Rey property. 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. The company ceased work at the Rey property during 2012, following a request to obtain additional approvals from local community agencies. In 2024, the company plans to continue working with the local agencies to understand and address any concerns the community may have, but the company has no assurance that it will be able to resume the company’s exploration activities in the near term. Once community support is obtained, the company plans to conduct follow-up drilling and exploration based on the drilling done in 2007 and 2008. While negotiations continue, the company will complete enough work to maintain the claims in good standing.
Mining Concessions and Regulations in Mexico
All of the company’s mining concessions are exploitation concessions, which may be granted or transferred to Mexican citizens and corporations. The company’s leases or concessions are held by the company’s Mexican subsidiary DDGM. Concessions grant the company the right to explore and exploit all minerals found in the ground.
Ejido Lands and Surface Right Acquisitions in Mexico
The company has an agreement with the local San Pedro Totolapam Ejido, allowing exploration and exploitation of mineralization at the Arista mine and some of the company’s surrounding properties.
The company has established surface rights agreements with the San Pedro Totolapam Ejido and the individuals impacted by the company’s proposed operations which allow disturbance of the surface where necessary for the company’s exploration activities and mining operations.
Back Forty Project
The Back Forty Project is an advanced Exploration Stage Property located in Menominee County, Michigan, USA in the mineral rich Penokean Volcanic Belt. The company’s property is made up of approximately 1,304 hectares (3,222 acres) of private and public (State of Michigan) mineral lands. Because of the exploratory nature of the property, the company does not consider the Back Forty Project to be independently material to the company.
History
Gold Resource Corporation was founded in 1998. The company was incorporated under the laws of the state of Colorado in 1998.
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