Gold Resource Corporation Announces the Completion and Release of S-K 1300 Technical Report of the Don David Gold Mine

Rhea-AI Summary

Gold Resource (NYSE American: GORO) has released its S-K 1300 Technical Report Summary for the Don David Gold Mine (DDGM) in Oaxaca, Mexico. The report highlights the successful 2024 drilling program achievements, including:

• A 10% increase in Mineral Reserves tonnes as of December 31, 2024 compared to the previous year
• Significant growth in the Three Sisters vein system, with an 800% increase in Mineral Reserves (526,152t vs 57,890t)
• 180% increase in Mineral Resource (662,749t vs 234,014t) in the Three Sisters vein system
• Completion of 12,760 meters of drilling across 87 underground holes

The report was prepared under S-K 1300 standards, implementing improved methodologies for geological interpretations, grade estimation, and ore control models.

Positive

• 10% increase in overall Mineral Reserves
• 800% increase in Three Sisters vein system reserves
• 180% growth in Three Sisters vein system resources
• Successfully replaced all 2024 mined reserves

Negative

• None.

Insights

Mining Resource Expert

Gold Resource 's latest Technical Report reveals significant positive developments at their Don David Gold Mine. The 2024 drilling program has not only replaced depleted reserves from mining operations but added an additional 10% increase in mineral reserve tonnage compared to year-end 2023.

Most impressive is the development of the Three Sisters vein system, showing an 800% increase in Mineral Reserves (526,152 tonnes vs previous 57,890) and a 180% increase in Mineral Resources (662,749 tonnes vs 234,014). This dramatic expansion represents a substantial enhancement to the mine's production profile and extends its operational life.

The company completed 12,760 meters of drilling across 87 underground holes during 2024, applying improved methodologies focused on geological interpretations, enhanced grade estimation, variable anisotropy assessment, and refined ore control models. These technical improvements create greater confidence in resource reliability.

For a relatively small producer like GORO (market cap: $51 million), this reserve replacement and growth is particularly meaningful as it directly addresses one of the key investment concerns for junior miners: resource depletion. The Three Sisters vein system appears to be emerging as a significant production center within the Don David operation.

Financial Analyst

This technical report represents a tangible positive for Gold Resource 's financial outlook. With a current market capitalization of just $51 million and share price of $0.44, GORO has been trading at a significant discount to many peers, partly due to concerns about mine life and reserve replacement.

The 10% increase in overall reserves directly addresses this concern, while the 800% growth in the Three Sisters vein reserves provides a meaningful new production source. This expansion has potential to improve production economics through several mechanisms:

• Extended mine life providing longer revenue generation
• Improved mining efficiency with more accessible reserves
• Potential for reduced per-ounce production costs through operational scale
• Enhanced operational flexibility with multiple production areas

For investors, this report materially strengthens GORO's underlying asset value. The company now has greater visibility into future production potential and cash flow generation. While this technical report doesn't directly address production costs or processing recovery rates, the reserve expansion creates a stronger foundation for the Don David operation. The involvement of both internal and independent qualified persons adds credibility to these findings, which should provide increased confidence to the investment community.

DENVER--(BUSINESS WIRE)-- Gold Resource Corporation (NYSE American: GORO) (the “Company”) is pleased to announce the release of the S-K 1300 Technical Report Summary (the “Report”) for the Don David Gold Mine (“DDGM”) located in Oaxaca, Mexico.

Figure 1: Cross section of the Arista mine showing 2024 drilling results (Graphic: Business Wire)

The Report summarizes the successful 2024 drilling program which resulted in a replacement of 2024 mined reserves plus a 10% increase in tonnes in Mineral Reserves at December 31, 2024 compared to December 31, 2023. This increase is most significant in the recently discovered Three Sisters vein system, with an increase of over 800% in Mineral Reserves (526,152 t versus 57,890 t) and 180% increase in Mineral Resource (662,749 t versus 234,014 t). During 2024, 12,760 m were drilled in 87 holes from underground on the property (Figure 1).

Background:

As a registrant with the United States Securities and Exchange Commission (“SEC”), the Company must report its exploration results, Mineral Resources, and Mineral Reserves using the mining disclosure standards of Subpart 229.1300 of Regulation S-K Disclosure by Registrants Engaged in Mining Operations (“S-K 1300”).

DDGM adopted S-K 1300 standards for the December 31, 2021, Technical Report. The adoption applied a new methodology focused on geological interpretations, improved grade estimation, better variable anisotropy, channel sampling, and improved ore control models. This approach creates greater confidence in the reliability of the Mineral Resources and Mineral Reserves. Gold and silver ounces are reported in troy ounces converted using 31.1035 grams per troy ounce.

Qualified Persons Disclosure:

The report was prepared in accordance with S-K 1300 and has been reviewed by Qualified Persons (“QPs”) who are mining industry professionals and specialist trained in diverse technical backgrounds. Three of the QPs are employed by the Company and are not considered independent of DDGM. These QPs are Rodrigo Simidu, Professional Engineer, Patrick Frenette, Professional Engineer, and David Turner, Professional Geologist. Additional independent QPs assisted with the report and they are Marcelo Zangrandi, Professional Geologist, employed by AMBA Consultoria Ltda, and Christian Laroche, Professional Engineer, employed by Synectiq. At the effective date of the Report, the QPs certified that to the best of their information, knowledge and belief, the parts of the Report for which they were responsible contained all scientific and technical information that was required to be disclosed to make the Report not misleading.

About GRC:

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of an experienced board and senior leadership team, the Company’s focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico and to develop the Back Forty Project in Michigan, USA. For more information, please visit the Company’s website, located at www.goldresourcecorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250305582084/en/

Allen Palmiere

Chief Executive Officer and President

303-320-7708

www.GoldResourceCorp.com

Source: Gold Resource Corporation

FAQ

What were the key findings in GORO's 2024 Don David Gold Mine Technical Report?

The report showed a 10% overall increase in Mineral Reserves, with the Three Sisters vein system showing an 800% increase in reserves and 180% increase in resources.

How many meters did GORO drill at Don David Gold Mine in 2024?

GORO completed 12,760 meters of drilling across 87 underground holes during 2024.

What was the percentage increase in Three Sisters vein system reserves for GORO?

The Three Sisters vein system reserves increased by 800%, from 57,890 tonnes to 526,152 tonnes.

How much did GORO's mineral resources increase in the Three Sisters vein system?

Mineral resources in the Three Sisters vein system increased by 180%, from 234,014 tonnes to 662,749 tonnes.