SLR to Provide Comprehensive Evaluation
Gold Resource Corporation has contracted SLR Consulting to complete a feasibility study for its Back Forty project in Michigan’s Upper Peninsula. Focusing on technical, economic, and operational aspects, the study is set to begin immediately.
Examining mine design, processing options, and infrastructure needs, the study will also consider environmental factors and overall project economics. This effort marks a crucial phase in the company’s growth strategy.
SLR, chosen for its expertise in mining engineering and mineral economics, brings experience with complex feasibility evaluations. Gold Resource Corporation expects the study to lay the groundwork for decisions on project scope, sequencing, permitting, and execution.
Background and Context
Gold Resource Corporation is focusing on expanding its North American asset base through the Back Forty project. October 2023 saw the release of a Technical Report Summary, projecting a 25.7% internal rate of return and a net present value of $214.5 million using that year’s commodity prices.
CEO Allen Palmiere emphasised that the feasibility study will support not only the initial evaluation but also potential follow-on technical work and permitting support. This aligns with the company’s goal to enhance its long-term production profile.
As the study progresses, Gold Resource Corporation predicts that the current commodity environment will lead to a higher valuation of the Back Forty project. Results are expected to guide future production decisions and strengthen the company’s asset base.
Operating primarily at the Don David Gold Mine in Oaxaca, Mexico, Gold Resource Corporation is a gold and silver producer, developer, and explorer. The company is focused on unlocking significant potential in its infrastructure and large land position surrounding the mine in Oaxaca, as well as developing the Back Forty Project in Michigan, USA.
In selecting SLR, Gold Resource Corporation sought a partner with proven capability in mining engineering, project development, and mineral economics. SLR’s familiarity with complex feasibility level evaluations is expected to provide a solid foundation for informed decision-making on the project.
Back Forty represents a significant opportunity for Gold Resource Corporation to expand its asset base in North America and strengthen its long-term production profile. The feasibility study is expected to be a critical component in advancing the project towards execution.
