GIH) reports 1 meter of 11.15 g/t gold, 658 g/t silver within 7
meters of 4.51 g/t gold, 350 g/t silver or 51.83 g/t (1.67 oz/tonne) gold
equivalent (AuEq) and 2 meters of 4.34 g/t gold, 3645 g/t silver or 90.36
g/t (2.91 oz/tonne) (AuEq) at its recently discovered El Arroyo area. El
Arroyo is part of GRC's El Aguila Project in the southern state of Oaxaca,
Mexico, which is targeting gold production the second half of 2008 subject
to timely obtaining the remaining required permits, regulatory approvals
and equipment delivery schedules.
Recent El Arroyo drill highlights include (second hole):
Hole # 108007 (-62 deg)
-- 1 meter of 11.50 g/t gold, 658 g/t silver, 1.22% copper, 6.03% lead,
10.80% zinc, (or a gold equivalent* value of 51.83 g/t (1.67 oz/tonne))
and,
-- 2 meters of 4.34 g/t gold, 3645 g/t silver, 1.28% copper, 0.73% lead,
1.79% zinc, (or a gold equivalent* value of 90.36 g/t (2.91 oz/tonne)) and,
-- 1 meter of 6.79 g/t gold, 629 g/t silver, 0.76% copper, 0.64% lead,
1.47% zinc, (or a gold equivalent* value of 25.62 g/t (0.82 oz/tonne)) and,
-- 1 meter of 6.13 g/t gold, 368 g/t silver, 0.43% copper, 0.83% lead,
1.66% zinc, (or a gold equivalent* value of 18.79 g/t (0.60 oz/tonne)) and,
-- 1 meter of 5.16 g/t gold, 490 g/t silver, 0.54% copper, 1.74% lead,
3.71% zinc, (or a gold equivalent* value of 24.72 g/t (0.79 oz/tonne))
Previously released El Arroyo drill highlights include (first hole):
Hole # 108002 (-61 deg)
-- 1 meter of 48.30 g/t gold, 570 g/t silver, 0.44% copper, 0.70% lead,
2.97% zinc, (or a gold equivalent* value of 66.79 g/t (2.15 oz/tonne))
within,
-- 3 meters of 25.27 g/t gold, 1857 g/t silver, 1.37% copper, 1.85% lead,
3.88% zinc, (or a gold equivalent* value of 77.33 g/t (2.49 oz/tonne))
The new Hole #108007 is the second drill hole into the recently discovered
El Arroyo area. This hole targeted mineralization below the previously
drilled high-grade mineralization in Hole # 108002 that intercepted 3
meters of 2.49 oz/tonne AuEq. These results represent core samples that
were sent for priority assaying. Assay results for the remainder of this
hole have not yet been received.
Hole #108007 drill results to date (three intervals in this hole):
Inter- AuEq*
Hole Angle From val Au Ag Cu Pb Zn AuEq* oz/
# (deg) Meters Meters g/t g/t % % % g/t tonne
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
108007 -62 181 1 5.16 490.0 0.54 1.74 3.71 24.72 0.79
108007 -62 182 1 0.51 76.0 0.33 5.01 7.79 20.43 0.66
108007 -62 183 1 0.68 52.6 0.17 0.30 1.04 4.12 0.13
108007 -62 184 1 4.80 382.0 0.24 2.18 3.36 21.28 0.68
108007 -62 185 1 11.15 658.0 1.22 6.03 10.80 51.83 1.67
108007 -62 186 1 6.79 629.0 0.76 0.64 1.47 25.62 0.82
108007 -62 187 1 2.47 168.0 0.10 0.10 0.15 6.76 0.22
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
Average 7 4.51 350.8 0.48 2.29 4.05 22.11 0.71
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
108007 -62 281 1 2.63 91.3 0.30 0.36 1.16 7.56 0.24
108007 -62 282 1 6.13 368.0 0.43 0.83 1.66 18.79 0.60
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
Average 2 4.38 229.7 0.36 0.60 1.41 13.17 0.42
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
108007 -62 287 1 4.61 3400.0 1.43 0.76 1.69 85.76 2.76
108007 -62 288 1 4.07 3890.0 1.13 0.71 1.89 94.97 3.05
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
Average 2 4.34 3645.0 1.28 0.73 1.79 90.36 2.91
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
Previously Released Hole # 108002
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
108002 -61 199 1 16.20 2490 2.76 3.08 6.00 90.31 2.92
108002 -61 200 1 48.30 570 0.44 0.70 2.97 66.79 2.15
108002 -61 201 1 11.30 2510 0.91 1.77 2.68 74.32 2.39
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
Average 3 25.27 1857 1.37 1.85 3.88 77.33 2.49
-------- ----- ------ ------ ----- ------ ---- ----- ----- ----- -----
*(Gold Equivalent (AuEq*) in chart using gold at $650/oz, silver at $14/oz,
copper at $3.10/lb, lead at $1.40/lb, zinc at $1.20/lb).
Assays by ALS Chemex, Vancouver, BC, Canada.
Gold Resource Corporation's President, William W. Reid, stated, "The first
two drill holes into El Arroyo have returned two of our highest-grade
intercepts to date. The first drill Hole #108002 was fantastic, with 3
meters of 2.49 oz AuEq, and now this second drill Hole #108007, at 287
meters, returned 2 meters of 2.91 oz AuEq. This second intercept is 62
meters vertically below the mineralization in the first drill hole.
Because the assayed sections for both El Arroyo holes are the only sections
for which we have received assay results so far, it is quite possible the
mineralized zones in both El Arroyo holes may end up being larger than
these selected sections."
"It is also exciting that in the first El Arroyo Hole #108002, 84% of the
values were in precious metals (gold and silver), and 16% in base metals.
This second Hole #108007, 62 meters deeper vertically, the precious metals
make up 92% of the values. As we have stated before, once we begin
underground mining of the polymetallic ore in the second year of
production, it appears that, on average, our base metal values should pay
for all costs of production which will in essence make our gold and silver
free," stated Mr. Reid.
Mr. Reid continued, "Both geomagnetic anomalies drilled to date are
coincident with high-grade mineralization. It appears the mineralization
is associated with intrusive dikes or bodies that were very hot when
intruded into the host country rock. These intrusives 'cooked' the country
rocks around and next to these dikes or bodies and one of the associated
alteration products resulted in the formation of magnetite, which is the
mineral primarily responsible for geomagnetic anomalies. In essence, these
intrusives appear to be directly associated with high-grade mineralization
and are leaving helpful exploration footprints in the form of magnetite and
therefore geomagnetic anomalies. This working hypothesis in which
high-grade mineralization, coincident at both the La Arista and El Arroyo
anomalies, is associated with geomagnetic anomalies elevates their
importance and future exploration will target the many additional
geomagnetic anomalies at the El Aguila Project."
Mr. Reid stated, "The 7 meter mineralized section between 181 meters and
187 meters appears to be an extension of La Arista Vein # 1 which extends
that vein on strike an additional 50 meters to the southeast. Though it is
too early to say definitively, it may be the case these two high-grade
mineralized areas, La Arista and El Arroyo, are continuous. Our drilling
focus is primarily on defining these two areas after which we will
immediately begin designing an underground mine to exploit this high-grade
polymetallic mineralization beginning in the second year of the El Aguila
Project operations."
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 34,156,952 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 "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 commercial production at the
El Aguila Project will be achieved in the time frames estimated, at the
rates and costs estimated, or even at all. 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