Gold Resource Corporation announced that all mining and processing activities at its Don David gold mine in Oaxaca, Mexico, have been suspended after a group of about 20 employees from four terminated contractors occupied the site and blocked access. The blockade was triggered by the company’s decision to terminate the contractors—who provided camp support, security, ore haulage, water haulage, and employee transportation—following a notice from the Confederación de Trabajadores de México (CTM) that the contractors were no longer affiliated with the union.
The company’s statement clarified that the blockade is illegal and that it is neutral in the dispute between the union and the contractors. Gold Resource Corporation has made it clear that it is prepared to resume operations once the blockade is removed, and it is working to resolve the underlying dispute while maintaining site stability, safety, and environmental protection.
Prior to the halt, Gold Resource Corporation reported a strong preliminary fourth‑quarter 2025 performance, producing 663,503 ounces of silver and 1,785 ounces of gold. The company’s revenue was driven largely by a shift toward silver, which now accounts for about 80 % of its revenue, and it ended the year with $25 million in cash and no debt. The positive momentum from that quarter underscores the potential impact of the current disruption on short‑term production and cash flow.
Management emphasized that the blockade is a temporary setback. President and CEO Allen Palmiere said the company is “prepared to promptly resume mining and processing operations once the blockade is removed” and that it remains focused on safety and environmental stewardship while it works toward a resolution. He also highlighted the company’s recent operational turnaround and the strong finish to 2025, noting that higher ore grades and increased production from the Three Sisters area have positioned the business for continued growth.
The company’s Back Forty Project in Michigan remains a development‑stage asset and is not affected by the blockade. Gold Resource Corporation’s leadership signals confidence that the short‑term headwind will be mitigated and that the company’s broader strategy—centered on silver production and a solid balance sheet—will continue to support its long‑term trajectory.
The blockade is expected to be resolved in the near term, after which Gold Resource Corporation will resume full production at Don David, restoring its output and cash‑generating capacity.
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