Gold Resource Corporation Announces Contract With SLR for Completion of the Back Forty Feasibility Study

Why It Matters

A completed feasibility study will provide the financial and technical clarity needed to secure financing and move the Back Forty project toward production, potentially adding a significant U.S. gold asset to GRC’s portfolio.

Key Takeaways

• GRC contracts SLR to finish Back Forty feasibility study
• Prior technical report showed 25.7% IRR, $214.5M NPV
• Study will cover design, processing, infrastructure, and permitting
• Project aims to boost GRC’s North American production profile
• Higher commodity prices could increase project valuation

Pulse Analysis

Gold Resource Corp., listed on the NYSE American under GORO, is pushing its Back Forty project—a 100‑plus‑million‑ounce gold‑silver deposit in Michigan’s Upper Peninsula—toward the next development phase. The company’s October 2023 technical report, built on $1,800 per ounce gold and $23.30 per ounce silver assumptions, yielded a 25.7% internal rate of return and a net present value of $214.5 million at a 6% discount rate. Those figures already place Back Forty among the more attractive junior‑scale projects in the United States, but GRC acknowledges that a full feasibility study is required to lock in those economics and address the detailed engineering, permitting and capital cost questions that investors demand.

To that end, GRC has engaged Responsible Mining Solutions, a unit of SLR Consulting, a firm renowned for delivering end‑to‑end mining engineering and mineral‑economics services. SLR’s mandate covers mine design options, ore‑processing pathways, infrastructure logistics, environmental impact assessments, and a rigorous economic model that will incorporate the latest commodity price trends. By leveraging SLR’s global experience, GRC expects a more granular cost estimate and a clearer schedule for permitting in Michigan, a jurisdiction known for stringent environmental reviews. The study’s outcomes will also test the sensitivity of the project’s profitability to fluctuations in gold, silver and copper prices.

For shareholders and potential financiers, the feasibility study represents a decisive risk‑mitigation tool. A positive result can unlock senior debt, equity placements, or joint‑venture partnerships needed to fund the estimated $300‑$350 million capital outlay for a 200,000‑tonne‑per‑year operation. Moreover, adding a U.S. asset diversifies GRC’s portfolio, which currently centers on the Don David mine in Oaxaca, Mexico, and may improve its standing with investors seeking exposure to stable, North‑American mining jurisdictions. As the gold market remains bullish, a completed feasibility could accelerate Back Forty’s path to production, potentially delivering incremental cash flow and enhancing GRC’s long‑term growth trajectory.