Gold Resource Corporation (GRC) is a gold producer targeting projects that feature low operating costs and high returns on capital. The Company's primary focus is on cash flow, with a priority to return a meaningful dividend back to the owners of the Company, its shareholders. The Company's "Oaxaca Mining Unit" consists of 100% interest in 5 potential high-grade gold and silver properties in the southern state of Oaxaca, Mexico.
GRC successfully declared commercial production July 1, 2010 from a shallow, high-grade open pit at its El Aguila project, which enabled the Company to reach production and cash flow in the shortest amount of time. In March of 2011, GRC announced production from its longevity of operations, its La Arista vein system. The Arista high-grade underground polymetallic deposit has an 8-year estimated mine life based on internal Company estimates of mineralized material. The Arista deposit remains open on both strike and at depth, and the Company targets the extensions of this deposit and is exploring for additional deposits to add to its mineralized material estimates.
The Company has an aggressive growth profile targeting production of its gold and silver mineralization as precious metal gold equivalent, while using industry standard base metal by-product credits of copper, lead and zinc to position GRC among the elite class of low-cost gold producers.
GRC is proud to have declared its initial $0.03 per/share "special" cash dividend July 31, 2010, just 30 days after declaring commercial production, and distributed consecutive monthly "special" dividends totaling $0.18 per/share returned back to the shareholders of the Company in 2010. The Company targets long-term dividend distributions of approximately 1/3 of cash flows.
Mexico is one of the leading venues for mineral potential and has a 500 year history of mining. GRC has secured a sizeable and dominant land position along a geologically important "North 70 West" structural corridor in Oaxaca. GRC is building an exciting geologic model around this corridor with numerous epithermal exploration targets including open pits and veins with skarn and/or porphery potential. The Company expects to continue to increase its exploration budget as cash flows from operations allow.