SOURCE: Gold Resource Corporation

September 11, 2008 11:12 ET

Gold Resource Corporation Intercepts 1.1M of 26.89G/T Gold and 1323G/T Silver (2.15 Oz/T Gold Equivalent) Within 3.4M of 36.07G/T (1.16 Oz/T Gold Equivalent) at El Aguila Project

Potential Third Parallel Vein

DENVER, CO--(Marketwire - September 11, 2008) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) reports two greater that 2 ounce gold equivalent (AuEq) intercepts including 1 meter of 26.89 g/t gold and 1323 g/t silver (2.15 oz/t AuEq) within 3.4 meters of 36.07 g/t (1.16 oz /tonne) AuEq in a possible third vein at its Arista deposit. The Arista deposit is part of GRC's El Aguila Project in the southern state of Oaxaca, Mexico, which is targeting gold production Q1, 2009, subject to timely obtaining the remaining required permits, regulatory approvals and equipment delivery schedules.

La Arista Vein drill highlights include:

Hole # 108020
-- 1.0 meter of 27.40 g/t gold, 834 g/t silver, 0.93% copper, 10.50%lead,
   17.60% zinc, (or a gold equivalent* value of 86.12 g/t
   (2.77 oz/tonne)) within
-- 3.5 meters of 8.09 g/t gold, 290 g/t silver, 0.35% copper, 3.29% lead,
   8.05% zinc, (or a gold equivalent* value of 30.51 g/t (0.98 oz/tonne))

Hole # 108022
-- 1.5 meters of 0.86 g/t gold, 1020 g/t silver, 1.61% copper, 0.52% lead,
   0.88% zinc, (or a gold equivalent* value of 29.95g/t (0.96 oz/tonne))

Hole # 108025
-- 1.6 meters of 7.87 g/t gold, 1540 g/t silver, 1.42% copper, 2.87% lead,
   6.70% zinc, (or a gold equivalent* value of 58.37g/t
   (1.88 oz/tonne)) within
-- 3.5 meters of 6.22 g/t gold, 857 g/t silver, 0.85% copper, 1.67% lead,
   4.27% zinc, (or a gold equivalent* value of 35.32g/t (1.16 oz/tonne))

Baja Vein drill highlights include:

Hole # 108020
-- 1.1 meters of 0.53 g/t gold, 110 g/t silver, 0.12% copper, 7.69% lead,
   11.15% zinc, (or a gold equivalent* value of 28.72 g/t
   (0.92 oz/tonne)) within
-- 2.8 meters of 0.65 g/t gold, 67.6 g/t silver, 0.17% copper, 3.65% lead,
   8.83% zinc, (or a gold equivalent* value of 19.19 g/t (0.62 oz/tonne))

Possible Third Vein East of Arista Vein

Hole # 108026
-- 1.1 meters of 26.89 g/t gold, 1323 g/t silver, 0.81% copper, 2.71% lead,
   3.79% zinc, (or a gold equivalent* value of 66.82 g/t
   (2.15 oz/tonne)) within
-- 3.4 meters of 12.75 g/t gold, 547 g/t silver, 0.63% copper, 2.11% lead,
   5.04% zinc, (or a gold equivalent* value of 36.07 g/t (1.16 oz/tonne))

Recent drill results include:


Hole        Angle  From  Interval  Au    Ag   Cu    Pb    Zn  AuEq*  AuEq*
#           (deg)  Meters Meters   g/t   g/t   %     %     %   g/t oz/tonne
           ------- ------ ------- ----- ---- ---- ----- ----- ----- -------
Arista Vein
108019         -75 334.20    0.90  1.74  168 0.15  0.81  4.05 12.15    0.39

108020         -65 296.50    1.00 27.40  834 0.93 10.50 17.60 86.12    2.77
108020         -65 297.50    0.70  0.20   40 0.05  0.19  1.07  2.85    0.09
108020         -65 298.20    0.80  0.23   66 0.14  0.29  1.47  4.38    0.14
108020         -65 299.00    1.00  0.60  100 0.16  0.66  8.66 15.17    0.49
108020     Average 296.50    3.50  8.09  290 0.35  3.29  8.05 30.51    0.98

108022         -60 220.50    1.50  0.86 1020 1.61  0.52  0.88 29.95    0.96

108022         -60 226.30    0.90  4.01   12 0.17  0.07  1.89  7.32    0.24

108022         -60 229.80    1.00  2.27  180 0.46  1.27  3.60 14.06    0.45

108022         -60 233.40    0.80  1.30   94 0.39  1.14  3.20 10.30    0.33

108023         -80 374.70    1.10  0.22  118 0.20  2.77  0.90  8.65    0.28
108023         -80 375.80    1.10  0.20   67 0.08  0.26  1.40  4.08    0.13
108023         -80 376.90    1.10  0.16  242 0.11  0.30  1.50  8.06    0.26
108023     Average 374.70    3.30  0.19  142 0.13  1.11  1.27  6.93    0.22

108023         -80 383.00    1.00  0.03   18 0.46  1.46  4.59  9.87    0.32
108023         -80 384.00    1.00  0.28   34 0.17  0.37  1.36  3.81    0.12
108023         -80 385.00    1.00  0.04   33 0.47  1.03  2.55  7.03    0.23
108023         -80 386.00    1.00  0.08   42 0.41  0.91  3.92  8.60    0.28
108023         -80 387.00    1.00  0.10   37 0.34  0.84 11.70 18.02    0.58
108023     Average 383.00    5.00  0.11   33 0.37  0.92  4.82  9.47    0.30

108024         -55 155.10    0.90  0.49   35 0.16  0.69  1.20  4.30    0.14
108024         -55 156.00    1.00  1.94  240 0.38  0.28  1.80 11.02    0.35
108024     Average 155.10    1.90  1.25  143 0.27  0.47  1.52  7.84    0.25

108025         -65 210.60    1.60  7.87 1540 1.42  2.87  6.70 58.37    1.88
108025         -65 212.20    0.95  3.82  344 0.50  0.99  3.47 18.69    0.60
108025         -65 213.15    0.90  5.83  185 0.23  0.24  0.79 11.90    0.38
108025     Average 210.60    3.45  6.22  857 0.85  1.67  4.27 35.32    1.14

Possible Third Vein East of Arista

108026         -75 196.30    0.30  8.71 1825 0.42  0.77  1.75 52.74    1.70
108026         -75 196.60    0.80 33.70 1135 0.96  3.43  4.56 72.10    2.32
108026         -75 197.40    1.10  9.06  272 0.78  3.68 11.40 37.28    1.20
108026         -75 198.50    1.20  3.18   89 0.31  0.14  0.36  6.77    0.22
108026     Average 196.30    3.40 12.75  548 0.63  2.11  5.04 36.07    1.16

Baja  Vein

108020         -65 331.20    1.10  0.53  110 0.12  7.69 11.15 28.72    0.92
108020         -65 332.30    0.90  0.48   52 0.22  1.16  9.59 16.15    0.52
108020         -65 333.20    0.80  0.99   27 0.18  0.89  4.79  9.50    0.31
108020     Average 331.20    2.80  0.65   68 0.17  3.65  8.83 19.19    0.62
           ------- ------ ------- ----- ---- ---- ----- ----- ----- -------
* (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

GRC is drilling the final few holes of its currently focused delineation drilling on portions of the Arista deposit's two main parallel veins, the Baja vein and the Arista vein. This delineation drilling continues to return consistent high grade values in both veins. Indications of a possible third parallel high-grade vein east of the Arista vein was intercepted in Hole # 108026.

Gold Resource Corporation's president, William W. Reid, stated, "Hole 108020 is at the northwest end of the delineation drilling grid and Hole 108025 is at the southeastern end of the grid. The fact that both continue to show high-grade precious metal mineralization (see plan map) is very positive for the Arista deposit as these veins are still open along strike and at depth. Again we see indications of a possible third parallel vein represented this time in Hole 108026. Intersecting 3.4 meters of 12.75 grams per tonne gold and 548 grams per tonne silver within 1.16 ounce per tonne gold equivalent is very exciting. The potential of this intercept representing a third vein coupled with the surface expressions of the many additional vein swarms in the area, adds to our belief that this system is large, high-grade and robust."

"As soon as we complete our current delineation drilling from a portion of these parallel veins we will move quickly to update our current mineralized material estimate for the Aguila Project. This information will then enable us to begin the design of our underground mine. After the completion of the delineation drilling, we will undertake a more exploratory focus to test these parallel veins for additional mineralization as well as explore our many additional geologic targets in the area," continued Mr. Reid.

Mr. Reid stated, "Currently, the downdraft in mining sector equities has pulled most mining companies down to new 52 week stock price lows, including Gold Resource Corporation. However, independently of the stock price movement, Gold Resource Corporation's strengths continue to grow. Our exploration results are converging on our 1.3 million ounce gold equivalent target with a potential in-ground value approaching one billion dollars. Mill equipment continues to mobilize to our marshalling yard in Laredo, Texas, and our continuing progress with mill construction all target a near term transformation of Gold Resource Corporation into a low cost producer. This transformation should result in a positive re-rating in the marketplace."

Gold Resource Corporation continues to move forward on all fronts as an emerging low cost producer.

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 34,231,952 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-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 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-K and Form SB-2 filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Jason Reid
    VP / Corporate Development
    303-320-7708

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