Don David Mine Blockade Hits Production; Q4 Delivers 45% of 2025 Output, $25M Cash

GOROGORO

An illegal blockade by 20 workers has halted operations at Gold Resource’s Don David mine in Oaxaca, suspending ore haulage and employee transport. In Q4 2025 the mine delivered 45% of annual output with record sales of 663,503 ounces of silver and ended the year debt-free with $25 million cash.

1. Temporary Illegal Work Stoppage Disrupts Oaxaca Operations

Gold Resource Corporation reported that approximately 20 employees of four contractors at its Don David Gold Mine in Oaxaca, Mexico, have established an unauthorized blockade following the termination of those contractors under the CTM union agreement. The contractors provided camp support, security, ore haulage, water haulage and employee transportation. This action has halted mining and processing activities at the site. The dispute is internal to the union factions and contractors, and the Company has emphasized that it remains neutral, continues to meet all contractual obligations and will restore full operations as soon as the blockade is lifted. Safety protocols for personnel and environmental protections remain in force during the work stoppage.

2. Preliminary Q4 Production Drives Year-End Balance Sheet to Strength

In the fourth quarter of 2025, Don David delivered 45% of full-year output, underpinning a debt-free year-end balance sheet with $25 million in cash. Quarterly metal sales included 663,503 ounces of silver and 1,785 ounces of gold, for a total of 10,413 gold equivalent ounces sold. Silver accounted for approximately 80% of revenue, supported by an average realized sale price of $55 per ounce; gold fetched an average of $4,234 per ounce. Processing throughput reached 85,888 tonnes in Q4, or 1,305 tonnes per operating day, reflecting the ramp-up of higher-grade ore from the new Three Sisters area. For the full year, total AuEq ounces sold were 23,125, versus 18,580 in 2024, highlighting the effectiveness of the turnaround initiatives and new equipment investments.

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