SOURCE: Gold Resource Corporation

October 08, 2007 06:00 ET

Gold Resource Corporation Updates Progress at Its El Aguila Project in Oaxaca, Mexico

DENVER, CO--(Marketwire - October 8, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce the signing of the important local Ejido (agrarian community) agreements to allow for mine development at its El Aguila Project in the southern state of Oaxaca, Mexico. Additionally, drilling continues to return high-grade intercepts from its El Aguila Project. These high-grade intercepts include 11 meters of 19.57 grams/tonne (0.63 oz/tonne) gold equivalent at its La Arista area; 6 meters of 16.47 grams/tonne (0.53 oz/tonne) gold equivalent at its El Aire vein; and 1 meter of 43 grams/tonne gold and 359 grams/tonne silver (1.63 oz/tonne gold equivalent) at its El Aguila open pit deposit. The El Aguila Project is targeted for production mid-2008 subject to timely obtaining all required permits and regulatory approvals, necessary funding and equipment delivery schedules.

The agreements between the local San Pedro Totolapam Ejido and Gold Resource Corporation's wholly owned Mexican subsidiary have been signed and filed with the National Agrarian Court and provide for an initial 20 year operation with the ability for extensions. These agreements represent local approval and support for Gold Resource Corporation's development of a mine at its El Aguila Project. This local approval is a necessary and important step to obtain federal mining permits.

Recent drill highlights include:

La Arista area;

Hole 7083 (-45 deg)

--  11 meters of 2.64 g/t gold, 167 g/t silver, 2.97% lead, 6.66% zinc (or
    a gold equivalent* value of 19.57 g/tonne or 0.63 oz/tonne)

El Aire area;

Hole 7285 (-60 deg)

--  6 meters of 4.91 g/t gold, 274 g/t silver, 1.22% lead, 2.85% zinc (or
    a gold equivalent* value of 16.49 g/tonne or 0.53 oz/tonne)

El Aguila open pit deposit;

Hole 7229 (90 deg)

--  1 meter of 43.10 g/t gold, 359 g/t silver (or a gold equivalent* value
    of 50.69 g/tonne or 1.63 oz/tonne) and
--  2 meters of 9.59 g/t gold, 125 g/t silver (or a gold equivalent* value
    of 12.13 g/tonne or 0.39 oz/tonne)

Assays by ALS Chemex, Vancouver, BC Canada

Gold Resource Corporation's president William W. Reid stated, "Our drilling continues to expand the high-grade El Aire vein which is still open in both strike and depth. The La Arista area shows both open pit and underground mining potential. We continue to be impressed with the area's multiple high-grade drill holes with intercepts of over one half ounce gold equivalent per tonne. This expanding area is also open in all directions and has the potential of becoming GRC's third high-grade deposit at our El Aguila Project."

Mr. Reid added, "Additional mineralization, as high as 43 grams per tonne gold and 359 grams per tonne silver over 1 meter, has been intercepted with infill drilling at our El Aguila open pit. We are also adding ounces with step out drilling. The El Aguila shallow high-grade open pit is where the initial production will come from."

"We are very pleased with the local support for our mining project and embrace the opportunity for our project to benefit the local communities. And drilling continues to bolster our belief that the El Aguila Project is potentially a very large, robust and high-grade epithermal system. We are consistently adding ounces and moving forward on all fronts as an emerging gold producer," concluded Mr. Reid.

About GRC

Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects 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 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