Gold Resource Corporation Invited to Participate in Scoping Environmental Impact Assessment
Gold Resource Corp. (NYSE American: GORO) (the "Company") has been invited by Michigan's Department of Environment, Great Lakes and Energy ("EGLE") to participate in a Scoping Environmental Impact Assessment ("SEIA") Meeting on August 5, 2022. The Company will be given the opportunity to present the initial site plan1 and other key improvements being incorporated into the Back Forty Project's optimized feasibility study. Another key objective of the meeting is for EGLE and key stakeholders to discuss the permitting process and related requirements of the Back Forty Project.
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Project Location (Graphic: Business Wire)
Allen Palmiere, President and CEO said "This is a fantastic opportunity to introduce our initial site plans1 to key stakeholders in the community, especially tribal communities. While the initial site plans have taken into consideration historical concerns expressed, we are keen to learn more about any other concerns that may come up during the assessment. Our priorities while progressing the feasibility study and permitting initiatives at the Back Forty Project are focused on favorably impacting our environment, social and governance programs while identifying economic and operational efficiencies."
Steve Donohue, Vice President, Environmental and Regulatory Affairs (Michigan), will represent the Company at the SEIA. The image gallery and the improvements listed below outline the materials to be presented at the SEIA meeting.
The optimized initial site plan highlights the following project improvements from the 2018 project:
- Combined open pit and underground mine
- Pit is smaller and pulled back from Menominee River and River Road
- Filtered tails facility (dry stack) eliminates the traditional tailings dam and therefore the need for a dam safety permit; streamlines water management of the tailings management facility, including at closure.
- Addresses Administrative Law Judge's decision related to alternatives analysis (2019 Wetland Permit Contested Case)
- Eliminates a waste storage facility in proximity to neighboring properties and wetlands
- Reduced wetland dredge and fill impacts (now less than 2 acres)
- Reduced visual intrusion on Menominee River and identified cultural resources.
The initial revised mine plan consists of a smaller open pit and incorporates underground mining1. The open pit is further from the Menominee River and does not cross River Road. The underground mine does not go under the Menominee River.
Listed below are the planned permit applications that will be filed after the feasibility study is published:
- Part 632 Mining Permit Application
- Part 632 Environmental Impact Assessment
- Air Permit Application (Permit to Install)
- NPDES Permit Modification
- Part 301/303 Wetland Permit Application
Gold Resource Corp. is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of an experienced board and senior leadership team, the company's focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico and to develop the Back Forty Project in Michigan, USA. For more information, please visit GRC's website, located at www.goldresourcecorp.com and read the company's Form 10-K for an understanding of the risk factors associated with its business.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company's participation in the SEIA, planned permit applications, and the development expectations in the optimized initial site plan, including the size and location of the pit, the use of a filtered tails facility, reduced wetland impact, and reduced visual intrusion on the Menominee River and identified cultural resources. These statements are subject to risks and uncertainties, including modifications that may be made during the preparation of the feasibility study or in connection with the permit process, changes in interpretations of geological, geostatistical, metallurgical, mining or processing information, and interpretations of the information resulting from exploration, analysis or mining and processing experience. The Company assumes no obligation to update this information. Additional risks relating to the Company may be found in the periodic and current reports filed with the SEC by the Company, including the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
Cautionary Note Regarding Feasibility Study
The Company uses the term "feasibility study" to refer to the technical and economic study it is preparing for the Back Forty Project. In order to qualify as a "feasibility study" as defined under Subpart 1300 of Regulation S-K 1300 ("S-K 1300"), the study must meet certain requirements, including, for example, that operating and capital cost estimates in the study must, at a minimum, have an accuracy level of approximately ±25% and a contingency range not exceeding 15%. Because the Company has not yet completed its analysis for the proposed study, there is no assurance that the study, when completed, will meet the definition of a "feasibility study" as defined under S-K 1300.
1 The initial site plan, including mine plan and process flow sheet, is subject to change as the feasibility study work continues with the Back Forty Project Team and Qualified Professionals. Additionally, the final construction decision is subject to approval by the Company's Board of Directors.
Chief Financial Officer