Gold Resource sees Nevada output boost, stock jumps

The Isabella Pearl gold mine is located in the Santa Fe mining district near Luning. Credit: Gold Resource Corp.

Gold Resource Corp. (NYSE: GORO) posted preliminary production results of 12,575 gold ounces for the third quarter of 2020, a record high, as well as 333,761 silver ounces and significant base metals.

Of the gold output, the company’s Nevada mining unit contributed 7,847 gold ounces, a 51% jump over the prior quarter, taking its preliminary production numbers to 16,747 gold ounces year-to-date.

The third quarter was the first full quarter that it 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 company said. 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 said it remains on track with ramp up into the fourth quarter to achieve its annual production target of 40,000 gold ounces in 2021.

At the company’s Oaxaca mining unit in Mexico, preliminary Q3 production was 4,728 gold ounces, 324,592 silver ounces, 428 copper tonnes, 2,157 lead tonnes and 5,538 zinc tonnes, representing increases of 94%, 75%, 74%, 89% and 84%, respectively, for each metal over the prior quarter.

Following the impacts of the covid-19 pandemic, the company previously withdrew its 2020 production outlook for both mining units.

Shares of Gold Resource jumped nearly 6% on Thursday following the release of its preliminary Q3 production results. The company has a market capitalization of $217.2 million.

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