Gold Resource Reports Preliminary Q3 Production Results Including Record Gold Production and 51% Nevada Gold Production Increase

Rhea-AI Summary

Gold Resource Corporation (GORO) reported a record gold production for Q3 2020, with 12,575 gold ounces and 333,761 silver ounces. Nevada production surged 51%, totaling 7,847 gold ounces, while the Oaxaca unit produced 4,728 gold ounces, marking increases of up to 94% for various metals. Despite a temporary production outlook withdrawal due to COVID-19 uncertainties, operations continued with health protocols. The company aims for an annual target of 40,000 gold ounces in 2021 and has returned $115 million to shareholders since 2010 through monthly dividends.

Positive

• Record Q3 production of 12,575 gold ounces.
• 51% increase in Nevada gold production.
• Oaxaca unit production increased by 94% with substantial output in silver and base metals.
• Continued monthly dividend payments total $115 million since July 2010.
• Goal to achieve 40,000 gold ounces production in 2021.

Negative

• Withdrawn 2020 production outlook due to COVID-19 uncertainties.
• Identified positive COVID-19 cases among employees may impact operations.

COLORADO SPRINGS, Oct. 14, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Gold Resource Corporation (NYSE American: GORO) (the “Company”) reports preliminary consolidated record gold production results for the third quarter ended September 30, 2020 of 12,575 gold ounces, 333,761 silver ounces and significant base metals.  Nevada gold production increased by 51% as the production ramp up phase continues.  Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company has returned $115 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery. 

Preliminary record third quarter production from the Company’s Nevada Mining Unit totaled 7,847 gold ounces, a gold production increase of 51% over the prior quarter.  Through the first three quarters of 2020, the Company’s Nevada Mining Unit’s preliminary production numbers total 16,747 gold ounces.  The third quarter was the first full quarter that the Company was able to regularly access portions of the deposit’s high-grade “Pearl” zone, while also mining the deposit’s lower grade “Isabella” zone.  The Pearl zone is estimated to contain 80% of the gold ounces at the Isabella Pearl deposit with an estimated average gold grade of 4.0 grams per tonne.  Gold Resource Corporation remains on track with ramp up into the fourth quarter, positioning the Company to achieve its annual production target of 40,000 gold ounce in 2021. 

Preliminary third quarter production from the Company’s Oaxaca Mining Unit totaled 4,728 gold ounces, 324,592 silver ounces, 428 copper tonnes, 2,157 lead tonnes and 5,538 zinc tonnes, which represents increases of 94%, 75%, 74%, 89% and 84%, respectively, for each metal over the prior quarter.  Through the first three quarters of 2020, the Company’s Oaxaca Mining Unit’s preliminary production numbers total 13,619 gold ounces, 912,464 silver ounces, 1,162 copper tonnes, 5,811 lead tonnes and 14,386 zinc tonnes.  

The Company previously withdrew its 2020 production outlook for both its Oaxaca and Nevada Mining Units following the impacts and uncertainties of the global pandemic, the two-month mandatory governmental suspension of Mexican operations in April 2020, and uncertainty of potential future outbreaks or governmental responses to the pandemic.  Both mining units operated continuously during the third quarter along with continued health screening protocols for COVID 19 prevention and mitigation.  During the third quarter Nevada identified one positive case of COVID while Mexico identified 29 positive cases.  Full financial results for the third quarter will be available at the time the Company files its quarterly report on Form 10-Q with the Securities and Exchange Commission. 

About GRC: 

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company targets low capital expenditure projects with potential for generating high returns on capital.  The Company has reached milestones including a decade of production, generated over $1 billion in revenue and has returned $115 million back to its shareholders in consecutive monthly dividends since July 2010.  In addition, the Company also offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.  For more information, please visit GRC’s website, located at www.goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved. 

Cautionary Statements:

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “plan”, “target”, "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation’s strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.  Also, there can be no assurance that production will continue at any specific rate.  Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the SEC.

Contacts:

Corporate Development

Greg Patterson

303-320-7708

www.goldresourcecorp.com

FAQ

What were Gold Resource Corporation's gold production numbers in Q3 2020?

Gold Resource Corporation reported 12,575 gold ounces produced in Q3 2020.

How much did Nevada's gold production increase in Q3 2020?

Nevada's gold production increased by 51%, totaling 7,847 gold ounces.

What is Gold Resource Corporation's annual production target for 2021?

The company aims to achieve an annual production target of 40,000 gold ounces in 2021.

How much has Gold Resource Corporation returned to shareholders since 2010?

The company has returned $115 million to shareholders through consecutive monthly dividends since July 2010.

What impact did COVID-19 have on Gold Resource Corporation's operations?

The company withdrew its 2020 production outlook due to COVID-19 uncertainties and reported positive cases among its employees.