Gold Resource Corporation has engaged Responsible Mining Solutions, a part of SLR Consulting, to complete a comprehensive feasibility study for the company’s wholly owned Back Forty project, located in the Upper Peninsula of Michigan.
The study will evaluate technical, economic and operational parameters associated with the Back Forty project, including mine design considerations, processing options, infrastructure requirements, environmental factors, and project economics.
The gold and silver producer said work under the agreement will commence immediately.
“This engagement represents a key milestone in Gold Resource Corporation’s broader growth strategy, as the company advances its efforts to expand its North American asset base and strengthen its long term production profile,” the company stated. “The feasibility study is expected to provide a critical foundation for informed decision making regarding the scope, sequencing, permitting and execution of the project.”
Gold Resource expects the engagement with SLR Consulting to support not only the initial feasibility study, but also potential follow on technical work and permitting support as the project advances.
In October 2023, the company published a Technical Report Summary in compliance with Subpart 1300 of Regulation S-K. Using gold prices of $1,800 per ounce, silver prices of $23.30 per oz. and copper prices of $3.90 per pound, the TRS resulted in an IRR of 25.7% and an NPV@6% of $214.5 million. Gold Resource said it expects the current commodity environment to lead to a significantly higher project valuation and to support a future production decision.