Gold Resource Corporation Consolidates Mineralized Trend at Isabella Pearl Project With Claim Acquisition

COLORADO SPRINGS, CO--(Marketwired - Jan 9, 2017) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced the acquisition of additional exploration mining claims, which consolidate the mineralized trend of its Isabella Pearl gold development project in Mineral County, Nevada. The claims were acquired from Nevada Select Royalty Inc. ("Nevada Select"), a wholly-owned subsidiary of Ely Gold and Minerals Inc. (TSX VENTURE: ELY) (OTC: ELYGF). Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $109 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

The Company acquired 100% of 153 mining claims from Nevada Select for US$460,000, which included shares of restricted common stock valued at $300,000, and cash of $100,000, plus a one-time advanced royalty cash payment of $60,000. Nevada Select retained a net smelter return royalty (NSR) of 2.5% on the claims. The Company has the right to buy down 0.5% percent of the NSR on the claims for US$500,000. 

The newly acquired mining claims brings the total number of mining claims at the project to 494, covering approximately 9,000 acres and which consolidate and eliminates many mine claim gaps along Isabella Pearl's mineralized trend. The claims extend exploration potential to the northwest along a geologic trend with mineralized outcrops and historic mine workings. 

Gold Resource Corporation acquired the Isabella Pearl project in August of 2016 from an unrelated party. The project contains third party proven and probable reserves estimated at 2,733,500 tonnes grading 2.18 grams per tonne, which equates to 191,400 gold ounces (report completed by Mine Development Associates, Reno, Nevada). Future production development anticipates two adjacent open pits with the Isabella pit averaging approximately 1 gram per tonne gold with mineral outcropping at the surface, and the Pearl pit averaging approximately 3.7 grams per tonne gold with a higher-grade core averaging nearly 5 grams per tonne gold.