SOURCE: Gold Resource Corporation

August 29, 2007 06:00 ET

Gold Resource Corporation Drills New Discovery With 1 Meter of 2.13 Oz/Tonne Gold Within 9 Meters of 0.62 Oz/Tonne Gold at El Rey, Its Second of Four High-Grade Properties in Oaxaca, Mexico

DENVER, CO--(Marketwire - August 29, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is excited to announce drill results of 1 meter of 2.13 oz/tonne gold (75.4 g/tonne Au) within 9 meters (true width not yet determined) of 0.62 oz/tonne gold (19.37 g/tonne Au) at its El Rey Project in the southern state of Oaxaca, Mexico. El Rey is the second of GRC's four high-grade gold and silver properties to be drilled and is located within trucking distance of the proposed El Aguila mill. The El Aguila mill is targeted for production mid-2008, subject to timely obtaining all required permits and regulatory approvals, necessary funding and equipment delivery schedules.

El Rey hole 7802 intercepts from 72 meters to 81 meters are (results to date):

 Hole    Angle   Depth   Interval   Gold      Gold    Silver
Number  degrees  meters   meters   g/tonne  oz/tonne  g/tonne
------  -------  ------  --------  -------  --------  -------
 7802     -40      72       1       20.30     0.65        14
 7802     -40      73       1       66.40     2.13        86
 7802     -40      74       1        3.94     0.13        60
 7802     -40      75       1        3.97     0.13        83
 7802     -40      76       1       31.80     1.02       118
 7802     -40      77       1        3.81     0.12       100
 7802     -40      78       2        6.90     0.22        84
 7802     -40      80       1       30.30     0.97        44
------  -------  ------  --------  -------  --------  -------

------  -------  ------  --------  -------  --------  -------
 7802     -40    72-81      9       19.37     0.62       75
------  -------  ------  --------  -------  --------  -------

Assayed by ALS Chemex, Vancouver, BC Canada

Gold Resource Corporation's president, William W. Reid, stated, "We believe that the discovery of this high-grade gold vein at El Rey is very exciting as well as significant. To find such high-grade gold over a 9 meter width with our first drill hole into the vein at El Rey is encouraging. Though one hole does not make an ore deposit, we are immediately moving forward to define this vein and to evaluate development of El Rey into becoming our second project to feed ore to our proposed El Aguila mill."

Mr. Reid continued, "If El Rey becomes a mine it would bring us closer to achieving our goal of four high-grade properties feeding one strategically located mill. This would reduce overall costs, help maximize the grade through the mill and contribute to the longevity of operations."

"We took advantage of the opportunity to drill El Rey, while a core drill was in transit from the El Aguila Project, with the intention of drilling a few reconnaissance holes. Selective samples previously taken at El Rey from dump material associated with old underground mine workings ran 80 & 85 g/tonne gold. With essentially only gold values in the 9 meter intercept, we are anticipating the metallurgy of this mineralization to be quite favorable and are proceeding with metallurgical test work," added Mr. Reid.

The El Aguila Project remains GRC's primary focus. We continue to expand on the El Aguila Project's two high-grade deposits; the El Aguila open pit and the El Aire vein. As per Gold Resource Corporation's previous press release, GRC continues to explore the El Aguila Project's multiple targets which include the new high-grade area called La Arista. Previously stated La Arista intercepts include a 2 meter intercept of 4.40 g/t gold & 2293 g/t silver.

"We are pleased to have discovered a new high-grade gold vein at El Rey, our second property to be explored by drilling. And, at our El Aguila property, 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