SOURCE: Gold Resource Corporation

Gold Resource Corporation

April 09, 2009 12:22 ET

Gold Resource Corporation's Geologists Discover New High-Grade Silver Vein; New Drilling Contract

DENVER, CO--(Marketwire - April 9, 2009) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to report fieldwork completed recently by its geologists discovered a new high-grade silver vein averaging 737 grams per tonne (23.7 oz/tonne) silver, over a vein width of at least 1 meter, in a historic mine adit from a new area of the Aguila Project. Additionally, GRC is contracting with GeoDrill S.A. de C.V. to undertake an initial 5000 meter core drilling program at GRC's El Aguila high-grade gold and silver project in the state of Oaxaca, Mexico. GRC targets production at its El Aguila Project mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules.

Gold Resource Corporation's geologists, while field mapping an area of the Aguila Project on the western flank of Cerro Colorado, found a historic adit (tunnel) previously partially hidden by vegetation. The adit, now named La Escondida, is located two kilometers west from GRC's Aguila mill site. La Escondida is geologically located near the western contact of a resurgent dome within a zone of nested calderas (volcanic centers). The northern contact of the same resurgent dome hosts GRC's Aguila open pit deposit and to the east of this resurgent dome are the high-grade underground deposits of the Aire, Arista and Baja veins which currently comprise the majority of GRC's drilled mineralization to date.

La Escondida adit was historically driven following a quartz vein in the volcanic rocks. The vein is striking north 35 degrees west, dipping -72 degrees to the southwest. GRC geologists mapped the adit, which is 40 meters in length and took channel samples, each approximately one meter or more in width across the vein and at two meter intervals along the strike of the vein. All samples reported significant mineralization with 22 contiguous samples averaging 737 grams per tonne (23.7 oz/tonne) silver. Four samples assayed over 1 kilogram per tonne of silver and the highest-grade sample was 3.73 kilograms per tonne (120 oz/tonne) silver. Minor gold values, including 2.05 grams per tonne were present in the vein as well.

22 channel samples from La Escondida vein

Sample      Gold      Silver
Number     g/tonne   g/tonne
3478       0.20       437.0
3619       0.40       957.0
3620       0.71      1890.0
3621       0.09       323.0
3622       0.32       905.0
3623       0.10       107.0
3624       0.17       398.0
3625       0.71      1810.0
3626       0.12       188.0
3627       0.64       237.0
3628       2.05      3730.0
3629       0.38       560.0
3630       0.05        88.7
3631       0.23       284.0
3632       0.03       213.0
3633       0.19       635.0
3634       1.50      1370.0
3635       0.20       256.0
3636       0.07       594.0
3637       0.05       634.0
3638       0.04        32.6
3639       0.15       563.0
Average    0.38Au     736.9    g/t Ag    (23.7 oz/tonne Ag)

Assays by ALS Chemex, Vancouver, BC Canada

Gold Resource Corporation's president William W. Reid stated, "The El Aguila Project encompasses 4 kilometers along an important regional structural corridor trending north 70 west. At the eastern end of the corridor we have our high-grade Aire and Arista vein systems, in the middle we have our Aguila open pit deposit and now with this new discovery on the western edge we have indications of high-grade silver at La Escondida. The Aguila Project's epithermal system continues to impress us with its high-grade values as we continue to expand its size through exploration and further development of our geologic model. All this mineralization is within 2 kilometers of our Aguila mill currently under construction."

Mr. Reid continued, "This new discovery was made by Gold Resource Corporation's fieldwork completed during down time between drill programs and La Escondida has been added to our long list of drill targets on the project. We are excited to begin our new drill program."

Gold Resource Corporation has contracted the drilling company GeoDrill S.A. de C.V., based in Peru with offices in Mexico, to continue GRC's core drilling exploration program. Drilling will target the expansion of established mineralization at GRC's La Arista deposit as well as explore many of the additional drill targets at the Aguila Project. GeoDrill S.A. de C.V. expects drilling to begin mid-April. GRC will continue its exploration efforts using one drill with the goal of accelerating exploration using multiple drills once cash flow from operations is achieved.

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 41,095,489 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