Gold Resource Corporation Hires SLR for Back Forty Feasibility Study
Event summary
- Gold Resource Corporation (GORO) has engaged SLR Consulting Ltd. to complete a feasibility study for its Back Forty project in Michigan.
- The study will evaluate technical, economic, and operational parameters, including mine design, processing options, and environmental factors.
- Work on the study begins immediately, marking a key milestone in GORO's growth strategy.
- A 2023 technical report estimated an IRR of 25.7% and NPV of $214.5 million for the project, with current commodity prices expected to improve valuation.
The big picture
Gold Resource Corporation is advancing its North American asset base with the Back Forty project, aligning with a broader industry trend of miners seeking to expand production profiles in politically stable regions. The feasibility study is critical for informing future investment decisions, particularly as commodity prices remain volatile. The project's success could strengthen GORO's long-term production profile and diversify its asset portfolio beyond Mexico.
What we're watching
- Commodity Prices
- Whether higher current gold, silver, and copper prices will significantly boost the project's valuation and support a future production decision.
- Permitting Challenges
- The pace at which environmental and regulatory permitting progresses, given the project's location in Michigan.
- Execution Risk
- How SLR's feasibility study will address technical and operational risks, particularly in complex mine design and processing options.
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