Gold Resource Corp. (NYSE:GORO) announced late Tuesday at its general meeting of shareholders in Denver, Colorado, that the second quarter is expected to set new production, revenue and earnings records as the company's El Aguila Project progresses.
The El Aguila project is situated 120 km southeast of the capital city of Oaxaca, Mexico.
Impacts from a severe storm back in April, which affected the underground La Arista mine, have now been mitigated and cleaned up, the company said in a statement.
In March, the company began the transition from processing lower grade, open pit ore, to processing underground ore from the high grade Arista deposit at El Aguila - well ahead of the original mid-year target.
As underground mine development continues to drive the spiral decline to the seventh level, its first stope is operational between levels four and five. The mine is shipping between 450 and 650 tonnes of ore per day.
La Arista is the company's largest deposit discovered to date at the project, and as Gold Resource continues to ramp up and improve operations, the deposit is expected to result in higher average grade ore, lower cash costs and greater output levels.
"The company has not only overcome adversity in the second quarter but continues to optimize operations and foresees record quarter production,” said president and CEO of Gold Resources Jason Reid.
"We are very proud of our Oaxaca team as they continue to produce excellent results at our El Aguila Project," he added.
Earlier this week, the gold producer added a sixth property of over 100 square miles to its Oaxaca mining unit.
The property consists of several new claims the company staked, including El Chamizo, which consists of 26,386 hectares connecting its Alta Gracia property to the El Rey asset - effectively consolidating 48 kilometers along strike of the north 70 west regional structural corridor, it said.
The mineral explorer also reported yesterday that all directors were re-elected and that all proposals by management were approved at the meeting.