Gold Resource Corp (NYSE MKT:GORO) says it has drilled new mineralization around 500 metres northeast of the Arista vein system in Mexico.
The step-out hole cut 2.2 metres of 12.91 grams per tonne (g/t) gold and 410 g/t silver. This was within an intercept measuring 15.5 metres wide and averaging 2.95 g/t gold.
The company was targeting a parallel structure to the Arista deposit, which it calls the "Switchback" and had previously been mapped at surface. The structure is one of several parallel to the Arista deposit that the gold miner is targeting with its ongoing drilling.
"It is exciting to see the potential of the Arista vein system continue to grow," said president Jason Reid in a release Thursday afternoon.
"As we continue to add to the various vein splays, such as splay #5 and splay #3 (now named the Santiago vein) on strike or parallel to the Arista deposit, we also target various parallel vein structures hundreds of meters from the deposit that could significantly extend the Arista system."
He said the Switchback "dramatically expands" the Arista system's potential. "We would not expect to intercept high-grade ore shoots on a new vein with the first initial drill holes, so to intercept a strong wide vein with excellent mineralization in the first few holes cutting the vein is very positive."
The company said it is planning to continue to explore the new mineralized vein discovery.
Just earlier this week, Gold Resource Corp announced more high grade gold and silver drill results from its Arista deposit in Mexico, drilling 4.7 metres of 3.1 grams per tonne (g/t) gold and 2,658 g/t silver. The results were from vein Splay 5 at the deposit, a new zone that was announced in March this year. The company is continuing to explore this vein as well, with the area now having been drilled over 250 metres vertical extent, with mineralization remaining open along strike and at depth.
The U.S.-based gold producer, with operations in the southern state of Oaxaca, Mexico, is calling for production of between 80,000 and 100,000 ounces of gold equivalent this year. The company has returned more than $83 million to shareholders in monthly dividends since declaring commerical production in July 2010.
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