SOURCE: Gold Resource Corporation

October 17, 2007 12:49 ET

Gold Resource Corporation Drills 132.5 Grams/Tonne Gold (4.26 oz/Tonne Gold) Over 1 Meter at El Rey Property in Oaxaca, Mexico

DENVER, CO--(Marketwire - October 17, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce results from core drilling of 132.5 grams/tonne gold (4.26 oz/tonne gold) over 1 meter at its El Rey property in Oaxaca, Mexico. El Rey is one of the Company's four properties in Oaxaca and initial drilling is yielding high-grade gold vein intercepts. El Rey is located within trucking distance (95 kilometers) of GRC's proposed El Aguila mill. 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.

El Rey hole 7810 is located 30 meters east and on strike with previously released hole 7802.

Highlights include:

Hole 7810 (40 deg)

--  1 meter of 132.5 g/t gold, (silver assays pending)
    

Previously announced highlights include:

Hole 7802 (40 deg)

--  1 meter of 66.40 g/t gold, 86 g/t silver within,
--  9 meters of 19.37 g/t gold, 75 g/t silver
    

Gold Resource Corporation's President William W. Reid stated, "We believe that the El Rey gold vein is a significant discovery and its shallow depth could facilitate an easy startup for mining. With continued drilling success we will evaluate the potential of blending this high-grade gold ore into our first year production plans at the proposed El Aguila mill."

"We are pleased that this El Rey vein has already yielded the Company's highest grade gold value to date with such limited exploration. This bodes well for its potential," stated Mr. Reid.

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