![]() 6-21-11 2011 ANNUAL MEETING 2011 ANNUAL MEETING Exhibit 99.1 |
![]() 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 receipt of working capital, and most other statements that are not historical in nature. Forward-looking statements are often identified by words such as "anticipate," "plan," "believe," "expect," "estimate," and the like. Because forward-looking statements involve future risks and uncertainties, there are factors that could cause actual results to differ materially from those expressed or implied, including those described in our filings with the SEC. Prospective investors are urged not to put undue reliance on these forward-looking statements. This presentation is to be read in conjunction with the most current 10K available at the Securities & Exchange Commission website www.sec.gov. or www.Goldresourcecorp.com Forward Looking Statements Forward Looking Statements |
![]() High-Grade Asset Base with Significant Exploration Potential High-Grade Asset Base with Significant Exploration Potential Low Cost Gold Producer Focused on Growth Low Cost Gold Producer Focused on Growth Engineered To Maximize Shareholder Value Engineered To Maximize Shareholder Value Focused on Cash Flow and Dividends Focused on Cash Flow and Dividends |
![]() Delivering Shareholder Value Delivering Shareholder Value |
![]() Recent events Recent events Mine cleanup after rain /hail storm is complete Precautionary measures Mine development continues 1 Stope (L4-L5) underway Descending benches Consider long hole stoping Decline progressing ~6 meters per day Progressing towards Level 7 Ore blending program during cleanup underground and open pit ore Mill optimization continues Cu/Au, Pb/Ag, Zn concentrates Underground Au, Ag +90% recovery st |
![]() Recent events Recent events Overcame adversity Optimizing operations Foresee Q2 record production, revenues and earnings Oaxaca Mining Unit Team Oaxaca Mining Unit Team |
![]() Aggressive Growth Profile Aggressive Growth Profile Calendar Year-end Production Targets Mill capacity as built = ~200,000 oz. Above targets do not include Company’s remaining open pit ore stockpiles and stated long term goal of increasing mill capacity to ~300,000 oz’s Internal Estimate, Not SEC Proven & Probable Reserves; see Risk Factors in Company’s 10K Requires rapid stope development and Company will reevaluate after Q2 10,493 90,000 155,000 200,000 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 |
![]() Continued Lower costs Continued Lower costs Cash Cost / Ounce Targets Cash Cost / Ounce Targets *Precious metals $0 cash cost / oz production targeted using industry standard base metal by-product credits of; Cu, Pb, Zn Internal Estimate, Not SEC Proven & Probable Reserves; see Risk Factors in Company’s 10K Q1 2011 $87 |
![]() Company’s First Profit Company’s First Profit Flotation Agitated leach Two mill circuits Q1 2011 First Company Profit |
![]() Descending Benches Descending Benches Schematic of Mine Development Schematic of Mine Development Arista Underground Mine development Arista Underground Mine development Currently stoping between levels 4 and 5 L4 L 5 ~450-650 nominal tonnes per day Ore Pass |
![]() Arista Underground Mine development Arista Underground Mine development Level 6 development: Multiple veins being mined |
![]() ![]() 1 st Stope L4 L 5 Hole # from Meters Au g/t Ag g/t Cu% Pb% Zn% (weighted avg. not true width) 5110004 79.47 33.81 18.49 1853 1.59 1.76 5.21 L 6 Safety ramp Arista Mine Development Arista Mine Development 3 drills assisting development work Hole 5110004 |
![]() Arista Mine Development Arista Mine Development 2011 Arista Drilling focus has been mine development NI-43-101 support Underground development intercepts include (weighted avg. not true width): Hole # from Meters Au g/t Ag g/t Cu% Pb% Zn% 5110004 79.47 33.81 18.49 1853 1.59 1.76 5.21 5110005 60.55 11.90 5.14 546 0.48 1.47 4.50 5110006 67.89 2.91 28.01 455 0.76 3.02 7.45 5110006 73.76 7.28 6.18 496 0.76 1.38 7.79 5110007 93.93 8.42 2.97 122 0.35 2.77 3.95 5110008 60.65 2.00 6.35 685 0.63 6.16 8.34 5110008 104.6 2.00 7.50 43 0.17 0.38 1.28 5110009 64.57 5.45 3.34 646 0.53 1.54 3.60 5110012 89.11 6.19 4.71 583 0.44 0.78 0.78 5110013 27.86 4.37 5.33 466 0.68 2.53 4.11 5110014 16.04 6.44 8.95 11116 0.54 1.55 2.51 2011 Arista Drilling focus going forward Continued mine development NI-43-101 support Arista expansion drilling |
![]() Strategy Strategy Decisions based on financial performance Payback CAPEX less than 1 year/ IRR >100% Production at earliest possible date Build company with cash flow Limit shareholder dilution Distribute meaningful dividend (Disciplined Cap Structure) (Approx.1/3 Cash Flow) |
![]() Exploration; 6 property acquired Exploration; 6 property acquired New land acquisition* 48 kilometers on trend +200sq miles New Property * th |
![]() Exploration; New Land Acquisition Exploration; New Land Acquisition Oaxaca Mining Unit expansion Dominant land position 5 properties on N70W regional structural corridor |
![]() Exploration; Drill Rigs Exploration; Drill Rigs Two drill companies currently contracted GeoDrill and Alta Drilling Additional drills being evaluated * The Company currently targets adding these drills subject to drill availability and / or order timeframes |
![]() Advancing Exploration Advancing Exploration The El Rey Property Discovered high-grade gold vein system Exploration / development underground Mineralization within 100 meters of the surface Vein drill intercepts include (5 holes) (1) : 1 m of 132.5 g/t Au 1.4 m of 55.3 g/t Au 9 m of 19.4 g/t Au including 1 m of 66.4 g/t Au 1 m of 31.8 g/t Au 1 m of 30.3 g/t Au 1 m of 29.1 g/t Au 1 m of 23.7 g/t Au Refurbish & extend existing shaft Drive 2 development drifts along veins Development Exploration Development Exploration |
![]() Advanced Exploration Advanced Exploration Alta Gracia Property Developed many high-grade targets High up in the system May be above boiling point Old workings utilized for new exploration Surface samples (rock chip) include: # Meter Ag g/t Au g/t 101814 0.3 2590 4.75 101815 1.2 604 1.32 101817 0.3 431 1.08 101820 0.3 801 1.69 101828 0.5 356 0.39 101837 1.0 287 2.08 101841 0.3 560 0.36 101793 0.3 926 2.10 Development Exploration Development Exploration Alta Gracia Property |
![]() Advanced Exploration Advanced Exploration Drill rig Pad for mine works exploration Old workings |
![]() Overcame Adversity Overcame Adversity Typical day at the mill |
![]() Overcame Adversity Overcame Adversity Freak hail storm |
![]() Overcame Adversity Overcame Adversity Gold Resource Corporation 2886 Carriage Manor Point Colorado Springs, CO. 80906 USA Office: (303) 320-7708 Fax: (303) 320-7835 Email: gregpatterson@goldresourcecorp.com Website: www.goldresourcecorp.com 10” of rain and hail in three hours |
![]() Overcame Adversity Overcame Adversity Mill remained operational No serious injuries |
![]() ![]() ![]() ![]() Overcame Adversity Overcame Adversity Flood cleanup complete Mine development continues First stope underway |
![]() Overcame Adversity Overcame Adversity Production continued Record production forecasted Q2 |
![]() Overcame Adversity Overcame Adversity |
![]() Gold Market / Equities pullback Gold Market / Equities pullback |
![]() Gold Market Gold Market “While the party continues for gold bullion prices, stocks of gold companies have been a no-show.” Frank Holmes June 2011 “Gold equities underperformed gold bullion in 2000 and 2008 during times of extreme market negativity and uncertainty. These previous instances have been merely temporary setbacks and markets generally reverted back to their long-term trends.” Frank Holmes June 2011 Gold Market / Equities Pullback Gold Market / Equities Pullback |
![]() Where We Are Going Where We Are Going Development of Expanded Oaxaca Mining Unit Development of Expanded Oaxaca Mining Unit Increase Shareholder Value Increase Shareholder Value Continue “Mainstream” Continue “Mainstream” Thrust for Institutional Investors Thrust for Institutional Investors Focused on Production and Increasing Cash Flow Focused on Production and Increasing Cash Flow Position GORO as “GO TO” Position GORO as “GO TO” Gold Investment Gold Investment |
![]() Mainstream Exposure Mainstream Exposure |
![]() Mainstream Thrust Mainstream Thrust Formal Resource Report Formal Resource Report NYSE Amex Listing NYSE Amex Listing “Mainstream” “Mainstream” for Institutional Investors for Institutional Investors Coverage Coverage TSX Secondary Listing TSX Secondary Listing 2010 2011 |
![]() Strike a balance between ~Company Growth ~Return to Owners Measurement ~Cash balance for near term growth ~Cash generated by Mine Gross Profit Mine Gross Profit Dividends 7/1/2010-3/30/2011 $18 million $13 million SPECIAL CASH DIVIDENDS SPECIAL CASH DIVIDENDS GORO; Unique Gold Investment GORO; Unique Gold Investment New Generated Cash ~Future project expectations |
![]() Cash flow (Mine Gross Profit) and dividend focused. Company long term estimate: ~1/3 cash flow for taxes ~1/3 cash flow targeted for growth ~1/3 cash flow targeted to be paid back to shareholders as dividends SPECIAL CASH DIVIDENDS SPECIAL CASH DIVIDENDS Special dividend declared Payable to shareholders of record as of Special dividend amount Total Special Dividends Returned to shareholders Jul.– Dec. 2010 $0.18 $0.35 Jan. 31 Feb. 14, 2011 $0.03 Feb. 28 Mar. 18, 2011 $0.03 Mar. 31 April 15, 2011 $0.03 Apr. 28 May 13, 2011 $0.04 May. 27 June 13, 2011 $0.04 Special dividends should not be considered a prediction or guarantee of future dividends. Potential special dividends may vary in amount and consistency or be discontinued at management’s discretion depending on variables including but not limited to operational cash flows, Company development requirements and strategies, spot gold and silver prices, taxation, general market conditions and other factors described in the Company’s public filings. GORO; Unique Gold Investment GORO; Unique Gold Investment (GRC targets, performance not guaranteed, see Risk Factors in Company’s 10K) |
![]() Company Annual Dividend Estimate Yield % Share Price Close 6/20/2011 Agnico Eagle U.S.$0.65 1.1% U.S.$60.98 Barrick U.S.$0.49 1.1% U.S.$43.17 Goldcorp U.S.$0.42 0.9% U.S.$47.35 Kinross U.S.$0.10 0.7% U.S.$14.88 Newmont U.S.$0.80 0.8% U.S.$51.82 Yamana U.S.$0.12 1.1% U.S.$11.32 Royal Gold U.S.$0.44 0.8% U.S.$56.39 PEER AVERAGE 0.9% Hypothetical* Gold Resource U.S.$0.48* 2.0% U.S.$24.30 Source: Based on each company’s annual public filing and Bloomberg. *Hypothetical special dividend distribution, NOT GUARANTEED Dividend & Yields Dividend & Yields |
![]() Cash Flow Cash Flow Become the “Go To” Become the “Go To” Gold Investment Gold Investment Dividends Dividends Dividends Dividends “In Kind” “In Kind” Treasury % Treasury % in Physical in Physical Adding Ounces Adding Ounces Capitalize on Capitalize on Opportunities Opportunities Low Cost Low Cost Producer Producer The “Go To” The “Go To” Gold Company Gold Company (GRC targets, performance not guaranteed, see Risk Factors in Company’s 10K) Growth Growth |
![]() Conclusion Conclusion Exploration of High-Grade Asset Base Exploration of High-Grade Asset Base Low Cost Gold Producer Low Cost Gold Producer Increasing Production Profile Increasing Production Profile |