Gold Resource Corporation has confirmed that production has begun from the high‑grade Three Sisters vein at its Don David mine in Oaxaca, Mexico. In the first two‑week period (November 8‑14) the mine processed 6,769 tonnes of ore, yielding a net smelter return 129 % above the model, while the second period (November 15‑21) saw 6,095 tonnes processed and a 91 % higher NSR. The results exceed the company’s expectations and support the outlook that the vein could supply 40‑50 % of total output by 2026.
The strong performance is driven by the vein’s exceptionally high grades and the company’s recent investment in new crushing and processing equipment that has reduced downtime. The higher-than‑planned tonnage also reflects a more efficient ore‑selection strategy that prioritizes the richest portions of the deposit, allowing the mine to maintain a higher throughput without increasing operating costs.
In addition to the Don David update, Gold Resource announced that it is resuming work on the Back Forty project in Michigan. The project, which contains gold, silver, copper and zinc resources, was previously held in limbo due to regulatory and environmental concerns. A 2023 technical report estimated a net present value of more than $430 million under current metal prices, and the company’s new feasibility study will determine the precise economics and permitting pathway.
The decision to restart Back Forty comes as Gold Resource seeks to diversify its asset base and improve its cash‑flow profile after a period of financial strain. The company has faced net losses and capital‑raising needs in recent quarters, and the operational gains at Don David, coupled with the potential upside of Back Forty, are intended to strengthen the balance sheet and provide a foundation for future growth.
Overall, the combined production gains and project restart signal a turning point for Gold Resource, indicating that the company’s focus on high‑grade ore and strategic expansion is beginning to translate into tangible operational and financial improvements.
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