Gold Resource Corporation · AMEX:GORO
Gold Resource — Shareholder Meeting (June 2017)
32 slides from Gold Resource's shareholder meeting presentation, Jun 30, 2017
Slide 1: Annual General Meeting June 29, 2017
Annual General Meeting June 29, 2017 Gold Resource Corporation NYSE MKT: GORO Arista mine ore, Oaxaca, MX
Slide 2: Forward Looking Statements
This brochure contains statements that plan for or anticipate the future. Forward-looking statements include statements about the Company's ability to develop and produce gold or other precious metals, statements about our future business plans and strategies, statements about future revenue and the
Slide 3: Agenda
Agenda 2016 Highlight Review Success on multiple fronts Oaxaca Mining Unit Arista mine growth Arista mine development Alta Gracia Mirador mine development ESR seal 2017 Nevada Mining Unit Isabella Pearl Project update Growth Profile Company Vision Gold 3
Slide 4: 2016 Review
Achieved our sixth consecutive year of profitability and organic growth Exceeded our annual gold production target Reached our annual silver production target Delivered our strongest Oaxaca Mining Unit Proven & Probable Reserve Report Increased gold and silver ounces and gold grades Replaced tonnes
Slide 5: 2016 Review
Acquired two high-grade gold properties to add to our Nevada Mining Unit Isabella Pearl Project providing near term gold production potential Mina Gold property providing additional pipeline of potential projects Posted net income of $4.4 million dollars or $0.08 per share Returned $1.7 million, or
Slide 6: El Aguila Project, mill and tailings facility
El Aguila Project, mill and tailings facility Oaxaca Mining Unit 7
Slide 7: 2016 delivered strongest Proven & Probable Reserve to date
2016 delivered strongest Proven & Probable Reserve to date Oaxaca Mining Unit Gold Resource corporation nyse mkt GORO FOR IMMEDIATE RELEASE February 21, 2017 news gold resource corporation increases Oaxaca mining unit proven and probable gold and silver reserves by 31% and 17% respectively Colorado
Slide 8: Significantly expanded Switchback in 2017
Significantly expanded Switchback in 2017 Oaxaca Mining Unit 9 Switchback Vein system -Mineralized veins -Step-out hole -Previous holes -Fault -Vein -Vein projection -Mine development -Meters down m hole Arista Mine Plan View Arista Vein system
Slide 9: Northwest Switchback step-outs not yet included in P&P
Northwest Switchback step-outs not yet included in P&P Oaxaca Mining Unit 10 Switchback Vein system -Mineralized veins -Step-out hole -Previous holes -Fault -Vein -Vein projection -Mine development -Meters down m hole Arista Mine Plan View +275 meter Step-out Arista Vein system 8.78m@1.46g/tAu, 207g
Slide 10: Southeast Switchback step-outs not yet included in P&P
Oaxaca Mining Unit -Mineralized veins -Recent holes -Previous holes -Vein -Vein projection -Mine development -Meters down m hole Arista Mine Plan View Arista Vein system 6.64m@1.49g/tAu, 220g/tAg, 13.19%Zn 5.08m@3.20g/tAu 261g/tAg, 11%Zn Switchback Vein system N ~50 meter SE Step-out Southeast Switc
Slide 11: Arista Switchback Arista Deposit; plan view
Arista Switchback Arista Deposit; plan view Oaxaca Mining Unit 12
Slide 12: 6+ years of production and system is growing
Arista Switchback Arista Deposit; plan view Oaxaca Mining Unit 13 6+ years of production and system is growing Grow into our next 6 to 10+ years?
Slide 13: Arista Switchback Arista Deposit; cross section
Santiago Splay 06 Aire Santa Cecilia Splay 31 Alta Marena Viridiana Santa Helena Santa Lucia Santa Clara Splay 66 Splay 05 Candelaria Baja Luz Veta 01 Veta 03 Susana Silvia Soledad Sagrario Sofía Sabrina Sb2 Sb1 Rampa General Arista Switchback Arista Deposit; cross section Oaxaca Mining Unit 14
Slide 14: Arista Mine continues to grow
Arista Mine continues to grow Switchback vein system could grow as large or larger than Arista vein system Doubled Switchback strike length Increased Switchback vertical extent Vein extensions not yet in Co’s P&P Reserve Switchback mineral open on strike and depth Oaxaca Mining Unit 15
Slide 15: Arista Mine development and mine plan
Arista Mine development and mine plan Oaxaca Mining Unit 16 Arista Switchback veins current development planned development
Slide 16: Switchback vein system development cross section
Switchback vein system development cross section Oaxaca Mining Unit 17 Ventilation Raises Current ramp development Arista Switchback 4 levels of Switchback development targeted by year-end 2017 Targeting over 1 year of mine development prior to bulk mining vein current development planned developmen
Slide 17: Switchback 460 Level – Plan View
Planned Footwall Access Drifts Current Vein Development SOLEDAD SABRINA SAGRARIO SUSANA Switchback 460 Level – Plan View Oaxaca Mining Unit Arista Switchback vein current development planned development Footwall development off the veins planned for increased future mining optionality Bulk tonnage m
Slide 18: Alta Gracia Project’s Mirador Mine
Alta Gracia Project’s Mirador Mine Oaxaca Mining Unit 19 Aguacate Adit 1535 1470 1400 Brought mine development “in-house” Recently began more consistent ore feed Proven and Probable Reserves - JAN 2017 Class Vein Tonnes Au g/t Ag g/t Au Eq g/t Au oz Ag oz Au Eq oz Cu % Pb % Zn % MIRADOR 25,100 1.14
Slide 19: Company awarded Mexico’s ESR seal for third consecutive year
Company awarded Mexico’s “ESR” seal for third consecutive year acknowledging: Socially responsible company Positive social, environmental & economic impact Positive culture and business strategy Employees, clients & business partners know Company has met ESR standards 2017 Social / Corporate License
Slide 20: Nevada Mining Unit
Acquired 4 high-grade Nevada gold properties within a 14 month period Acquired during the downturn in metals Close proximity properties Synergistic Mining Approach Shared equipment, facility and management Lower CAPEX Excellent access to infrastructure Initial goal of ~40k oz gold / year for 10 year
Slide 21: Nevada Mining Unit
Nevada Mining Unit 22 Mining friendly jurisdiction, Nevada USA Located in “Walker Lane” historic gold mining district High-grade gold Potential open pit heap leach operations Property Interest Exploration Development Production Isabella Pearl 100% 2018** Mina Gold 100% Gold Mesa Option* East Camp Do
Slide 22: Nevada Mining Unit
Nevada Mining Unit 23 P&P = Third party Proven and Probable Reserves *= Third party mineralized material estimate g/t = grams per tonne, Au = gold, m = meters CAPEX = capital expenditure Hawthorne GRC Property locations N Isabella Pearl 191,000 oz Au P&P 2.18 g/t Au avg Mina Gold +1.6M tonnes @ 1.88
Slide 23: Nevada Mining Unit Isabella Pearl
Nevada Mining Unit 24 Isabella Pearl Near term gold production Potential 100% increase to Company gold production Pearl Isabella
Slide 24: Isabella Pearl progress since August 2016 acquisition
Nevada Mining Unit 25 Isabella Pearl progress since August 2016 acquisition Hired Nevada General/Project Manager Drilled the required new water well for processing facility Drilled six deposit delineation holes Confirmed metallurgical recovery estimates (+80% Au recovery in 30 days) Hired Kappes Cas
Slide 25: Nevada Mining Unit IP Highlights
Nevada Mining Unit 26 IP Highlights: Small footprint / EA Low CAPEX costs Short haul distances Good infrastructure Closed pipe system Dry Preg & barren ponds Open Pit Crushing Heap ADR Plant Water well Project Boundary Waste Power Generators Barren overflow ponds Highway access Proposed IP Operation
Slide 26: Potential Growth Profile
Potential Growth Profile *first Full YR IP projection assuming Oaxaca Mining Unit Production = 2016/2017 **Full YR production estimate 27 29.6KozAu 27.6KozAu IP gold production would more than double Co’s gold output* 1.85MozAg 1.86MozAg Gold oz’s 2.50MozAg ~62.5KozAu Oaxaca IP 1.88MozAg Oaxaca IP 2
Slide 27: Clear vision of Gold Resource Corporation
Clear vision of Gold Resource Corporation as: Diversified Low-cost precious metal producer Explorer Dividend Payer Shareholder friendly philosophy Production growth profile 2017 and Beyond 28
Slide 28: Gold Commentary
Gold Commentary 29 All the reasons to own gold are present Global debt continues exploding higher Bank bailouts starting again (Italy’s +$19B taxpayer-funded bank deal*) Stock market’s numerous bubbles and overvaluation Politics Terrorism Internet hacking Etc *Sunday June 25, 2017 https://www.thegua
Slide 29: Gold manipulators under fire
Gold 30 Gold manipulators under fire Circular process of “spoofing” futures markets and direct market manipulation is under investigation and individuals being prosecuted “ex-Deutsche Bank trader David Liew pled guilty in Federal Court to “spoofing” and direct manipulation of precious metals markets
Slide 30: Gold manipulators under fire
Gold 31 Gold manipulators under fire CFTC crackdown on metal manipulators U.S. said to be planning more charges against bank traders Deutsche Bank has wound down most of its metals trading desk since ~2014 “After pleading guilty to fraud charges last week and agreeing to cooperate, Liew has become a
Slide 31: Buying Opportunity
Buying Opportunity 32 GDXJ Junior Gold Miners Index rebalance recently damaged prices Huge demand for GDXJ Held large position in companies of which threatened regulatory size requirements Announced a major rebalance (add non-junior Co’s, selling percentage current Co’s) The rebalance weighed heavy
Slide 32: Thank You
Thank you for being a GORO shareholder and thank you for your time today Thank You 33