SOURCE: Gold Resource Corporation

November 05, 2007 06:00 ET

Gold Resource Corporation Hits Possible Second Gold Vein at El Rey Returning 1.5 Meters of 11.22 Grams / Tonne Gold and 986 Grams / Tonne Silver

DENVER, CO--(Marketwire - November 5, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) reports additional El Rey drill intercepts including 11.22 grams/tonne gold and 986 grams/tonne silver over 1.5 meters at its El Rey property in Oaxaca, Mexico. This recent drilling indicates the possibility of a second high-grade gold vein at El Rey. El Rey is one of the Company's four properties in Oaxaca, Mexico and 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.

Potential vein #2 highlights include:

Hole 7808 (-45 deg)

--  1.5 meters of 11.22 g/t gold, 986 g/t silver, within

--  2.5 meters of 8.65 g/t gold, 621 g/t silver

Previously announced highlights from vein #1 include:

Hole 7810 (-40 deg)

--  1 meter of 132.5 g/t gold, 88 g/t silver

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

El Rey drill intercepts include:
                                                                    Gold
                                                           Silver  Equival-
Hole        Angle  Depth  Interval  Gold   Gold oz/ Silver    oz/     ent*
Number     degrees meters  meters  g/tonne  tonne  g/tonne  tonne  oz/tonne
           ------- ------- ------- ------- ------- ------- ------- --------
Vein #2
7808           -45    56.0     0.5    3.84    0.12   101.0    3.25     0.19
           ------- ------- ------- ------- ------- ------- ------- --------
7808           -45    56.5     0.5    5.78    0.19    44.6    1.43     0.22
           ------- ------- ------- ------- ------- ------- ------- --------
7808           -45    57.0     0.5   13.85    0.45   134.0    4.31     0.54
           ------- ------- ------- ------- ------- ------- ------- --------
7808           -45    57.5     0.5   16.25    0.52  1585.0   50.96     1.54
           ------- ------- ------- ------- ------- ------- ------- --------
7808           -45    58.0     0.5    3.55    0.11  1240.0   39.87     0.91
           ------- ------- ------- ------- ------- ------- ------- --------
Average               56.0     2.5    8.65    0.28   620.9   19.96     0.68
           ------- ------- ------- ------- ------- ------- ------- --------
Including             57.0     1.5   11.22    0.36   986.3   31.71     1.00
           ------- ------- ------- ------- ------- ------- ------- --------

Vein #1
7810           -40      27       1   132.5    4.26      88    2.83     4.37

7802           -40      72       1   20.30    0.65      14    0.45     0.66
7802           -40      73       1   66.40    2.13      86    2.76     2.19
7802           -40      74       1    3.94    0.13      60    1.93     0.17
7802           -40      75       1    3.97    0.13      83    2.67     0.18
7802           -40      76       1   31.80    1.02     118    3.79     1.10
7802           -40      77       1    3.81    0.12     100    3.22     0.18
7802           -40      78       2    6.90    0.22      84    2.70     0.27
7802           -40      80       1   30.30    0.97      44    1.41     1.00
           ------- ------- ------- ------- ------- ------- ------- --------
Average        -40   72-81       9   19.37    0.62      75    2.41     0.67
           ------- ------- ------- ------- ------- ------- ------- --------

*Gold Equivalent = 50:1 (Ag:Au)

Assayed by ALS Chemex, Vancouver, BC Canada


Gold Resource Corporation's president William W. Reid stated, "El Rey is developing as a high-grade gold system that appears to now have two veins, the second of which contains significant silver credits. We are expecting that with continued drilling we may be able to develop high-grade gold to be shipped to the proposed El Aguila mill, beginning the first year of operation, providing additional high-grade gold feed to the mill with important silver credits."

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