SOURCE: Gold Resource Corporation

Gold Resource Corporation

February 22, 2010 07:42 ET

Gold Resource Corporation Signs Underground Mining Contract for Development of Its High-Grade Arista Gold Silver Deposit at Its Aguila Project

DENVER, CO--(Marketwire - February 22, 2010) -  Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce the signing of an underground mine contract for development of its El Aguila Project's Arista deposit, located in Oaxaca, Mexico.

Comsa S.A. de C.V., a mining contractor from Zimipan, Hidalgo state with 15 years experience, has been contracted to develop 1500 meters of decline ramp and several other works of underground development for the Arista mine. Comsa is an experienced underground mine contractor in Mexico who has performed underground mine development for companies including Minera Penoles and Minera Hecla.

William W. Reid, President of Gold Resource Corporation, stated, "We are very excited to have signed this underground mining contract as it signals an important milestone in the life of this project. As announced in the December 1, 2009 press release, our internal analysis of the high-grade Arista vein system should provide us with 8 years or more of production, after the first twelve months of production from our high-grade gold and silver El Aguila open pit. The Arista vein system's mineralization remains open both laterally as well as at depth with potential to provide additional years beyond the Aguila Project's current mine life total of 9 years."

Mr. Reid continued, "The Arista vein system's high-grade gold and silver mineralization is coupled with base metals of copper, lead and zinc. We believe revenues from the base metal content of the ore, when used as by-product credits, will pay the cash costs of the operation. Consequently, at full production, our targeted 200,000 ounces of precious metal gold equivalent per year could potentially be produced at 'zero' cost."

William W. Reid stated, "It is our goal to make a seamless transition from processing the Company's El Aguila open pit ore, presently being mined and milled, to the Arista underground ore, which is now under development."

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 48,050,284 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 filed with the Securities and Exchange Commission

Contact Information

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