SOURCE: Gold Resource Corporation

October 18, 2007 06:00 ET

Gold Resource Corporation Acquires Water Permit and Operating Water Well for Its El Aguila Project in Oaxaca, Mexico

Purchases Land for Mine Village

DENVER, CO--(Marketwire - October 18, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) announces it has purchased a permitted operating water well for the proposed mill at its El Aguila Project in Oaxaca, Mexico. GRC also reports the purchase of a 5 hectare property where GRC plans to build a village for the El Aguila Project. Gold Resource expects to commence production at El Aguila in mid-2008, subject to obtaining remaining permits and regulatory approvals, completing necessary financings and equipment deliveries.

Gold Resource Corporation's president William W. Reid stated, "We are pleased to have obtained the necessary water for our El Aguila Project. This is an important and crucial infrastructure element needed for production. We credit our Oaxaca management, staff and the local community with our continued progress in obtaining the necessary agreements and permitting for the El Aguila Project." As previously stated, Gold Resource Corporation's wholly owned Mexican subsidiary has recently signed agreements with the local ejido (agrarian community) representing local approval and support for Gold Resource Corporation's development of a mine and mill at its Project. With this recent acquisition of the water permit GRC eagerly awaits final federal permits for the El Aguila Project.

Gold Resource Corporation has also purchased 5 hectares adjacent to the community of San Jose de Gracia in the San Jose Totolapam Ejido. GRC plans to construct "La Mina Aldea" or mine village for GRC's employee housing and offices necessary for the El Aguila Project. This village will also contain facilities such as a health clinic available to both employees and local residents.

Mr. Reid stated, "It is very important that Gold Resource make a positive contribution to the surrounding communities above and beyond providing local jobs. We plan to build a village that employees and local residents can be proud of. The village clinic will aid in the overall health betterment for the surrounding communities and is but one of many ways in which GRC plans to make a positive impact. We embrace this opportunity and look forward to working with the local communities of which Gold Resource is becoming a part."

"In addition, this village is very important in order to retain the best operating staff in an industry environment where competition is great. The ability to offer a very pleasant lifestyle for employees and their families is very important to us," stated Mr. Reid.

Mr. Reid continued, "Our high-grade drill results at both El Aguila and El Rey are exceptional. Equally, I am pleased at this point in time with the development of the El Aguila project. The permitting progress, mill construction planning and production funding status are all on course as we move forward as an emerging gold producer."

About GRC

Gold Resource Corporation is a mining company focused on developing gold-silver deposits that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 28,249,552 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-KSB for an understanding of the risk factors involved.

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future production, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-KSB and Form SB-2 filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Jason Reid
    Gold Resource Corporation
    303-320-7708