SOURCE: Gold Resource Corporation

September 06, 2007 06:00 ET

Gold Resource Corporation Drills Most Extensive High-Grade Mineralization to Date Including 7.5 Meters of 1.05 Oz/Tonne Gold Equivalent at Its El Aguila Project in Oaxaca, Mexico

DENVER, CO--(Marketwire - September 6, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce drilling its most extensive high-grade mineralization to date including 7.5 meters of 32.66 grams/tonne (1.05 oz/tonne) gold equivalent within one of three zones totaling 35 meters of 16.17 grams/tonne (0.52 oz/tonne) gold equivalent at its newly discovered La Arista area, which is part of GRC's El Aguila Project in the southern state of Oaxaca, Mexico. 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.

La Arista area drill hole #7080 (drilled at 45 deg) highlights include:

--  7.5 meters of 8.01 g/t gold, 329.1 g/t silver, 1.92% lead, 9.92% zinc
    (or a gold equivalent* value of 1.05 oz/tonne) within
    
--  13.5 meters of 5.05 g/t gold, 209.2 g/t silver, 2.84% lead, 9.16% zinc
    (or a gold equivalent* value of 0.86 oz/tonne) and
    
--  19.5 meters of 0.96 g/t gold, 75.0 g/t silver, 0.70% lead, 3.49% zinc
    (or a gold equivalent* value of 0.28 oz/tonne) and
    
--  2 meters of 5.73 g/t gold, 249.3 g/t silver, 0.87% lead, 1.74% zinc
    (or a gold equivalent* value of 0.47 oz/tonne)
    

Total Mineralization of 3 Zones

--  35 meters of 2.81 g/t gold, 136.7 g/t silver, 1.54% lead, 5.58% zinc
    (or a gold equivalent* value of 0.52 oz/tonne)
    

Early drill indications at La Arista area suggest the potential of significant mineralization.

La Arista Intercepts include:

From       Interval   Au     Au       Ag       Ag    Pb   Zn   Au Eq   Cu
Meters      Meters g/tonne oz/tonne g/tonne oz/tonne  %    %  oz/tonne  %

194.0        1.0    4.75    0.15     215.5   6.9   0.65  1.54  0.40   0.31
195.0        1.0    6.72    0.22     283.0   9.1   1.09  1.93  0.54   0.51
194-196      2.0    5.73    0.18     249.3   8.0   0.87  1.74  0.47   0.41

210.5        1.0    1.41    0.05      71.7   2.3   3.52  3.09  0.36   0.79
211.5        0.5    3.67    0.12     378.0  12.2   2.76  4.60  0.70   0.73
212.0        1.0    9.17    0.29     829.5  26.7   2.60  9.61  1.44   1.03
213.0        1.0    2.85    0.09      62.2   2.0   1.53 12.85  0.83   0.73
214.0        1.0    4.19    0.13      45.4   1.5   0.77 15.50  0.98   0.45
215.0        1.0    8.68    0.28     765.0  24.6   1.73  8.12  1.27   0.66
216.0        1.0    6.01    0.19     215.5   6.9   2.97 11.18  1.00   0.80
217.0        1.0   21.85    0.70     233.5   7.5   1.73  7.98  1.32   1.27
218.0        1.0    5.49    0.18     128.4   4.1   1.70  6.88  0.67   0.40
219.0        1.0    2.23    0.07      54.9   1.8   6.03  8.91  0.75   0.18
220.0        1.0    1.49    0.05      49.3   1.6   1.74  5.22  0.40   0.47
221.0        1.0    0.69    0.02      27.3   0.9   1.07  5.50  0.35   0.16
222.0        1.0    0.51    0.02      56.4   1.8   1.76  9.15  0.57   0.67
223.0        1.0    1.81    0.06      96.3   3.1   9.89 17.38  1.31   0.76
210.5-224   13.5    5.05    0.16     209.2   6.7   2.84  9.16  0.86   0.65
211.5-219    7.5    8.01    0.26     329.1  10.6   1.92  9.92  1.05   0.76

230.5        1.0    1.15    0.04      13.1   0.4   0.20  3.64  0.24   0.15
231.5        1.0    0.42    0.01      30.5   1.0   0.07  1.35  0.11   0.10
232.5        1.0    1.22    0.04      28.9   0.9   0.26  2.35  0.19   0.14
233.5        1.0    0.90    0.03      18.6   0.6   0.37  2.52  0.18   0.09
234.5        1.0    1.50    0.05      57.2   1.8   0.90  6.49  0.44   0.09
235.5        1.0    1.52    0.05      99.7   3.2   0.93  7.36  0.52   0.16
236.5        1.0    1.22    0.04      27.9   0.9   0.11  4.17  0.27   0.15
237.5        1.0    1.17    0.04      32.5   1.0   0.10  5.13  0.32   0.19
238.5        1.0    4.33    0.14      76.0   2.4   1.31  7.22  0.60   0.27
239.5        1.0    1.32    0.04     279.0   9.0   1.15  3.18  0.43   0.31
240.5        1.0    0.51    0.02      65.7   2.1   2.27  9.08  0.59   0.31
241.5        1.0    0.47    0.01      90.3   2.9   2.27  3.35  0.32   0.16
242.5        1.0    1.17    0.04     121.8   3.9   0.87  3.39  0.32   0.29
243.5        1.0    0.46    0.01      55.4   1.8   1.06  4.13  0.30   0.59
244.5        1.0    0.03    0.00      13.0   0.4   0.32  1.36  0.09   0.10
245.5        1.0    0.23    0.01      57.9   1.9   0.04  0.65  0.08   0.08
246.5        1.0    0.35    0.01      67.3   2.2   0.05  0.54  0.09   0.07
247.5        1.0    0.25    0.01      69.9   2.2   0.03  0.20  0.07   0.10
248.5        1.0    0.38    0.01     214.0   6.9   1.33  1.92  0.30   0.23
249.5        0.5    0.48    0.02      90.0   2.9   0.05  0.13  0.09   0.14
230.5-250   19.5    0.96    0.03      75.0   2.4   0.70  3.49  0.28   0.19
230.5-244.5 14.0    1.24    0.04      71.2   2.3   0.85  4.52  0.35   0.21
244.5-250    5.5    0.27    0.01      84.9   2.7   0.33  0.86  0.12   0.12

Total Mineralization
3 Zones     35.0    2.81    0.09     136.7   4.4   1.54  5.58  0.52   0.38

*(Gold Equivalent (AuEq) using gold at $650/oz, silver at $14/oz, zinc at $1.50/lb, lead at $0.90/lb)

Gold Resource Corporation's president, William W. Reid, stated, "Hole number 7080 has opened up more extensive mineralization than we have seen previously. Three zones within this hole total 35 meters averaging 16.17 g/tonne gold equivalent (0.52 oz/tonne AuEq) within which is 7.5 meters of 32.66 g/tonne gold equivalent (1.05 oz/tonne AuEq). This hole is drilled 110 meters to the east of Hole number 7063, which was announced August 8th, that had intercepts totaling 22.5 meters of 9.33 g/tonne gold equivalent (0.30 oz/tonne AuEq), including 2.5 meters of 3.46 g/tonne gold (0.11 oz/tonne Au)and 1803 g/tonne silver (57.97 oz/tonne Au)."

La Arista represents GRC's first concerted effort to explore the El Aguila Project's important N70W San Jose structural corridor on which are located the El Aguila Project's two existing deposits, the high-grade El Aguila open pit deposit and the high-grade El Aire vein deposit which are located on strike 2 kilometers apart. La Arista is located within this structural corridor immediately north and east of the El Aire vein. The majority of the San Jose corridor remains untested.

Mr. Reid continued, "La Arista's mineralization contains some of the widest gold intercepts we have encountered to date as well as the highest silver and base metal mineralization. With gold intercepts of 8.01 g/tonne or 0.26 oz/tonne over 7.5 meters indications are good this new zone could add significant gold resources. Equally as important, the silver, lead and zinc mineralization hold substantial economic value so that these metals, used as credits, will help lower effective costs to produce an ounce of gold. Initial metallurgical tests previously run for the mineralization of the La Arista area indicate recoveries into concentrates of 95% gold, 98% silver, 98% lead and 90% zinc. La Arista has also encountered possible economic copper values. The copper has not been included in the gold equivalent values here but if the values become economic the copper's recovery could add value to La Arista's polymetallic ore."

Mr. Reid continued, "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 'user friendly' valuation calculation that places the emphasis on the total dollar value for polymetallic ore. La Arista's polymetallic ore can best be quantified by a gold equivalent value. We are fortunate to have substantial and recoverable amounts of silver, lead and zinc alongside our high-grade gold."

"We are pleased with these developments at La Arista. Drilling will continue to focus on this new La Arista area as well as GRC's El Aguila open pit and the El Aire Vein. All the mineralization in these three areas is along the important San Jose structural corridor. This bolsters our belief that the El Aguila Project is potentially a very large, robust and high-grade epithermal system. We are also very pleased, as stated in the previous press release dated August 29th, with our new discovery at our El Rey property. El Rey returned 9 meters of 19.37 g/tonne or 0.62 oz/tonne gold including 1 meter of 66.40 g/tonne or 2.13 oz/tonne gold. If El Rey becomes a mine it would support GRC's plan to have multiple mines feeding one strategically located mill. We continue to add ounces and move 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 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

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