SOURCE: Gold Resource Corporation

Gold Resource Corporation

February 24, 2011 06:00 ET

Gold Resource Corporation Expands Crushing Plant

DENVER, CO--(Marketwire - February 24, 2011) - Gold Resource Corporation (GORO) (NYSE Amex: GORO) is pleased to report expansion of the mill's crushing plant at its El Aguila Project. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.

The Aguila mill's crushing plant was improved and expanded with the addition of a tertiary crusher (see photo) enabling not only additional capacity but smaller size feed to the ball mills. With the tertiary crusher online crushing operations increased to a nominal 750 tonnes per shift. With this modification the company now has the capability to crush approximately 2000 tonnes per day. This expansion of the crushing plant is the first step in ultimately expanding mill capacity. The Company's 2013 target of 200,000 precious metal gold equivalent ounce production was estimated on a nominal mill throughput of a 1200 tonnes per day, from the Arista high-grade underground ore. 

Gold Resource Corporation's President stated, "We are pleased with our very competent team in Oaxaca who are constantly improving and enhancing the operation of the mill. This modification represents a nominal 65 percent increase to our mill's crushing capacity."

Mr. Jason Reid continued, "In addition to having now expanded the crushing plant, we have purchased two additional 1 megawatt Caterpillar diesel generators to add to our existing bank of four generators. We are currently preparing foundations for the new generators that will ultimately increase our total number of generators to eight in preparation for future expansion of total mill capacity."

"These modifications and improvements are the first steps in our long term objective to increase our production goals for the Project. We continue to evaluate, modify and improve our operations and position the Company to someday expand our mill's production capacity to the previously stated expanded production goal of 300,000 precious metal gold equivalent ounces per year," stated Mr. Jason 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 five potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 52,998,303 shares outstanding, no warrants and no debt. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K 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 "plan," "target," "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 plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. 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. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Greg Patterson
    Corporate Development
    303-320-7708