SOURCE: Gold Resource Corporation

June 12, 2008 20:54 ET

Gold Resource Corporation Receives Federal Permit to Build Mill at El Aguila Project, Oaxaca, Mexico

DENVER, CO--(Marketwire - June 12, 2008) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to report it has been granted the Mexican federal permit to build the El Aguila Project's mill in the southern state of Oaxaca, Mexico. The El Aguila Project is targeting gold production in 2008 subject to timely obtaining the balance of the required permits, regulatory approvals and equipment delivery schedules.

On June 12, 2008, the United States of Mexico's Secretary of the Environment and Natural Resources (SEMARNAT) granted GRC's 100% owned Mexican subsidiary, Golden Trump Resources, S.A. de C.V., federal permission to construct the El Aguila Project mill. The agency also asked GRC to file the tailings facility as a separate application from the mill permit and GRC has done so.

Gold Resource Corporation's president, William W. Reid, stated, "We are pleased to have obtained our second federal permit for the El Aguila Project. This permit allows GRC to now aggressively begin construction of the El Aguila mill. As previously announced on February 4th, 2008, GRC was granted the road permit and construction of the road is nearing completion."

Mr. Reid stated, "We have in motion many elements needed to keep our production target in 2008 yet we cannot predict if all the remaining elements will fall into place to make that timeframe. We would have preferred starting mill construction a month ago as it would have helped facilitate our production target; however, we continue to aggressively move the El Aguila Project forward on all fronts to produce gold at the earliest possible date."

The same federal agency that has granted GRC permits for the road and the mill is evaluating GRC's remaining permit applications for the tailings facility and open pit mine.

Mr. Renaldo Jimenez has decided to not go forward with his employment as Project Manager of El Aguila Project. Mr. Jimenez, who accepted that position May 13th, 2008, had not physically started at GRC's project as Goldcorp wanted him to finish certain items. Mr. Jimenez stated that he appreciated the opportunity to build and operate what he believed was a great project at El Aguila but during his last days at Goldcorp he felt he belonged to a team he did not want to leave.

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 34,206,952 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