SOURCE: Gold Resource Corporation

July 09, 2007 06:00 ET

Gold Resource Corporation Intercepts 3 Meters of 1.5 Ounce Gold Equivalent in Deepest Hole to Date at El Aguila Project

DENVER, CO--(Marketwire - July 9, 2007) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is excited to announce continued high-grade values at the El Aire vein. Intercepts include 3 meters of 46.66 g/t gold equivalent* (1.5 oz/tonne AuEq*) in the deepest and highest grade El Aire vein intercept drilled to date. This intercept extends the high-grade El Aire vein over approximately 350 meters of strike length and 250 meters of depth with El Aire vein mineralization still open in both strike and depth. The El Aire vein is part of GRC's El Aguila Project in Oaxaca, Mexico which is targeted for production in mid-2008.

Recent El Aire vein highlights include:

                                                        Gold      Gold
                                                     Equivalent Equivalent
Hole   Angle   Depth  Interval Gold Silver Lead  Zinc    oz/      grams/
Number degrees meters  meters   g/t  g/t    %     %    tonne      tonne
-----  ------  ------  ------  ---- ------ ----- -----  ----      -----
7045    -60     246      1     7.44  979.0  0.54  1.25  1.00      31.01
7045    -60     247      1     3.36  886.0 18.50 10.80  1.83      57.03
7045    -60     248      1     1.28 2230.0  1.26  1.32  1.69      52.59
7045    -60     249      1     0.28  381.0  0.10  0.29  0.29       9.04
-----  ------  ------  ------  ---- ------ ----- -----  ----      -----
7048    -60     216      1     0.85   52.4  4.29  4.03  0.40      12.41
7048    -60     217      1     0.11   49.6  4.14  6.65  0.50      15.60
7048    -60     218      1     0.42   37.5  1.34  3.35  0.25       7.79
-----  ------  ------  ------  ---- ------ ----- -----  ----      -----
7049    -50      39      1     0.46  302.0  0.39  0.63  0.27       8.32
7049    -50      40      1     2.12  744.0  1.06  2.51  0.74      23.11
7049    -50     172      1     1.10 1580.0  1.24  2.17  1.28      39.73
7049    -50     174      1     0.36   49.7  0.68  1.14  0.12       3.87
7049    -50     175      1     1.83   65.6  0.61  1.23  0.19       5.76
-----  ------  ------  ------  ---- ------ ----- -----  ----      -----

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

William W. Reid, President of Gold Resource Corporation, stated, "The El Aguila Project continues to impress us with its high-grade values, such as the 2.23 kilos of silver per tonne just intercepted in the El Aire vein with drill hole 7045 and 1.58 kilos of silver per tonne in hole 7049. From the beginning we have felt that this property is exceptional as it has high-grade surface samples over 8 kilometers along a major structural corridor. We have numerous surface outcrops that sample higher than most mines ore-grade, such as the 35 g/t gold surface sample and the two surface samples running over 3,000 g/t silver. These recent drill intercepts show the same high-grade mineralization continuing at a depth of approximately 250 meters below the surface. Hole 7045's intercept of 3 meters of 46.66 g/t gold equivalent* (1.5 oz/tonne AuEq*) extends the high-grade El Aire vein vertically by 168 meters; becoming our new deepest intercept to date. Hole 7045 replaces our previous deepest intercept in hole 7036 of 1 meter of 35.77 g/t gold equivalent* (1.15 oz/tonne AuEq*) at a depth of 82 meters."

Mr. Reid continued, "The geological situation that is developing portends some exciting future possibilities. Hole 7045 is the first intercept where we have encountered any copper (1.08% at 247 meters and 1.95% at 248 meters). Applying one possible geologic model, as we continue to intercept the vein at depth, suggests we may be approaching an intrusive replacement type of deposit beneath the high-grade mineralization found in the El Aire vein. These types of deposits have the potential to be quite large and valuable. This is in line with the findings from Gold Resource's geochemical survey completed in 2006 by Dr. Jeffrey A. Jaacks of Geochemical Applications International, LLC."

Dr. Jaacks states, "There are 3 different gold associations indicated in the stream sediment program of El Aguila. The first is the Au+Ag+As+Sb+Hg association at the El Aguila ore body and represents a volcanic hosted epithermal gold system. The second association, consisting of Au+Ag+As+Sb+Hg+Cu+Pb+Zn+Mo+Bi+W occurs downstream from the El Aguila ore body in drainages to the northwest of the El Aire mine and represents Au veins developed in a skarn / hornfel setting peripheral to an intrusive." The recent intercepts at El Aire may be indicative of high-grade vein mineralization above a possible skarn deposit as Dr. Jaacks suggests.

Mr. Reid stated, "Though it is too early to draw definitive conclusions on a possible skarn deposit we are encouraged by the possibility and what we see developing with the mineral zoning. We are very excited by the continued high-grade intercepts such as in holes 7045, 7048 and 7049 as we continue to target the high-grade El Aire vein system. The El Aire vein system is open in both strike and vertical extent."

Gold Resource Corporation's drill program has focused on a 2 kilometer section of GRC's 8 kilometer mineralized trend. At one end of that 2 kilometer section is the El Aguila high-grade open pit deposit (averaging 7.45 g/t gold and 63 g/t silver) within which is GRC's best 2 meter intercept of 101 g/t gold and 1040 g/t silver (at an elevation of 1,150 meters). At the other end of this 2 kilometer corridor is the high-grade El Aire vein that includes the recent 1 meter intercept of 2,230 g/t silver (at an elevation of 700 meters). "Continued returns of high-grade drill intercepts consistently over a large vertical and aerial extent, coupled with our geochemical gold associations and all our high-grade gold and silver surface samples, lends credence to our belief that the El Aguila Project is a very robust system and possibly quite large," stated Mr. Reid.

Mr. Reid concluded, "Gold Resource Corporation is focused on its initial three years of production from the El Aguila Project since our estimate of capital payback is only six months. Production is targeted for mid-2008 subject to obtaining all required permits and regulatory approvals in a timely manner, as well as necessary funding and equipment delivery schedules. It is our belief that by attaining gold production and cash flow at the earliest possible date we can build Gold Resource for the benefit of the shareholders with the least shareholder dilution. The El Aguila Project's upside potential, as strengthened by these recent high-grade intercepts and corresponding geology, is as exciting as most any exploration play today while successful production will mitigate the downside risk inherent in exploration alone. Gold Resource Corporation is moving forward on all fronts as an emerging gold 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 owns 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. 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 GRC'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 GRC 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
    303-302-7708

    Andrew J. Barwicki
    Investor Relations
    516-662-9461