SOURCE: Gold Resource Corporation

October 30, 2007 10:38 ET

Gold Resource Corporation Increases Ounces at Its El Aguila Project in Oaxaca, Mexico

DENVER, CO--(Marketwire - October 30, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO), (FRANKFURT: GIH) announced results from an internal analysis of its drilling to date at its 100% owned El Aguila Project in Oaxaca, Mexico. Estimates of mineralized material equal 1,836,497 tonnes grading 2.57grams/t gold (Au), 188.24 grams/t silver (Ag), 1.08% Lead (Pb), 2.91% zinc (Zn), 0.26% copper (Cu). This equates to 773,355 gold equivalent (AuEq) ounces, as detailed below. This mineralized material does not meet the SEC definition of Proven and Probable Reserves but would be equivalent to an estimate of Inferred Resource in Canada. Gold Resource expects to commence production at its El Aguila Project 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 more than doubled our April 11, 2007 mineralized material estimate of 290,500 gold equivalent ounces to 773,355 gold equivalent ounces. Equally, based on the fact that our drilling continues to confirm and expand this very robust, high-grade epithermal system, we feel the exploration potential at El Aguila is great and may soon increase our gold equivalent estimate to over 1 million ounces."

The mineralized material number is an in-place number without regard to recoveries. Gold Resource, like many in the industry, subscribe to the use of gold equivalent or AuEq as a means to present the aggregate value of polymetallic ore. Gold equivalent valuation quantifies the base metal percentages and precious metal ounces of polymetallic ore into one value. This calculation converts the metals quantity into its dollar value and converts that dollar value back into an equivalent gold value. Gold equivalent is a valuation calculation that places the emphasis on the total dollar value for polymetallic ore. The following mineral values were used in this gold equivalent conversion: gold at $650/ounce, silver at $13/ounce, lead at $1.60/pound, zinc at $1.30/pound and copper at $3.60/pound.

Gold Resource Corporation's April 11 production decision was based on a targeted initial three year mine life and a capital payback of 6 months. Because of the increase in total ounces along with certain higher grade areas, such as El Aire Vein #2 which averages 0.83 AuEq oz/tonne and La Arista Vein #1 which averages 0.63 AuEq oz/tonne, GRC now targets 6 years of mine life with annual production targets of gold or gold equivalent levels as follows:

Ounces in Gold (Au) or Gold Equivalent (AuEq)
Year 1  Year 2  Year 3  Year 4  Year 5  Year 6
70,000  100,000 120,000 120,000 120,000 120,000

Gold Resource Corporation continues to move forward on all fronts as an emerging low cost 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