Gold Resource Corp (AMEX:GORO) announced Thursday it reached mine development phase level seven at its wholly owned Arista mine in Oaxaca state, Mexico, and intersected up to 70.17 grams per tonne (g/t) gold in the Baja and Arista veins.
The Arista underground mine is a polymetallic system, consisting of many en echelon veins. The mineralization had previously been drilled over 500 metres laterally and 500 metres of vertical depth.
The level seven zone is situated only 54 metres of vertical depth from the top of the deposit, and confirms two strong veins that Gold Resource believes represent its Baja and Arista veins.
Notable assays from the Baja vein include 1.8 metres grading 70.17 g/t gold, 2,594 g/t silver, 0.4% copper, 0.3% lead and 0.46% zinc from level seven sample #113051, which Gold said appears to be increasing with depth.
From the level six sample #107858, also in the Baja vein, assays returned 8.38 g/t gold, 857 g/t silver, 0.49% copper, 0.89% lead and 1.29% zinc over 2.6 metres.
Assays from level seven in the Arista vein returned 5.3 metres grading 11.91 g/t gold, 3,499 g/t silver, 1.47% copper, 2.04% lead and 3.78% zinc from sample #113228, and 16.11 g/t gold, 1,419 g/t silver, 1.32% copper, 2.62% lead and 4.46% zinc over 3.4 metres of sample #113213.
Sample #113180 from level seven in Arista vein retuned 1.7 metres grading 21.86 g/t gold, 5,344 g/t silver, 1.09% copper, 7.07% lead and 6.59% zinc, including 45.45 g/t gold, 10,904 g/t silver, 2.04% copper, 6..69% lead and 9.12% zinc over 0.8 metres.
The Colorado Springs, Colorado-based company said the underground Arista deposit continues to feed the Aguilla mill from ore retrieved at levels five, six, and now, seven.
"We are pleased with the Arista vein system's continuity, grade and multiple veins as we continue to develop and mine the upper portion of the deposit," said Gold Resource president, Jason Reid.
Still, as the metals and mining sector continues to be battered in the markets today, Gold Resource's stock on the Amex Exchange fell 4.8% to trade at $25.60 per share as of 2:18 pm EDT.