COLORADO SPRINGS, CO, Aug 29, 2011 (MARKETWIRE via COMTEX) — Gold Resource Corporation updates shareholders on third quarter production and formal resource report progress. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico. The Company has returned over $24.6 million to shareholders in special monthly dividends since declaring commercial production July 1, 2010.
Production and optimization at the Aguila Project is progressing well for the first two months of the third quarter. The combination of increasing ore grades, increasing mill throughput and increasing recoveries has resulted in mineral production for the third quarter to date surpassing the second quarter production totals. We remain at our current targeted production range for the year 2011 of 60,000 to 70,000 precious metal gold equivalent ounces.
“Our team is doing an excellent job and we are very proud of their continued mill optimizations, mine development and overall accomplishments,” stated the Company’s President, Mr. Jason Reid. “Presuming mill optimization and throughput levels continue during September, we could potentially see substantial production growth in the third quarter. As we have stated before, our production growth is primarily a function of mine development, increasing the number of working stopes and the buildup of underground ore stockpiles.”
Gold Resource Corporation continues its progress towards an industry standard formal resource report having engaged the experienced Denver, Colorado-based engineering firm of Pincock Allen & Holt (PAH). A standardized NI 43-101 Technical Report would be necessary if the Company decides to pursue a secondary listing of its securities on the Toronto Stock Exchange (TSX). PAH has been to the Aguila Project and has approved the Company’s Quality Assurance/Quality Control procedures, which include independent assaying, and found them to be acceptable and to industry norms. Other factors for the Technical Report have been approved, including but not limited to, density factors, drill spacing necessary for Measured, Indicated and Inferred categories, and modeling parameters. Continued NI 43-101 confirmation drilling is being carried out by three drills at the Arista vein system. Drill rig priority is given to the Company’s exploration department for continued Arista mine development for production; however, the primary drilling and sampling is being used for the determination of Mineral Resources for the NI 43-101 Technical Report. The report’s estimated completion date has yet to be determined, though the Company is targeting completion by the end of the year.
About Pincock Allen & Holt (PAH): Since its inception some 42 years ago, Pincock Allen & Holt (PAH), part of Runge Limited, has earned a reputation as a premier international consulting and engineering firm. One of the oldest and most respected organizations within the mining and energy consulting community PAH has an unparalleled reputation for integrity and for technical, commercial, and engineering excellence. Its corporate resume includes over 3,900 successfully completed assignments for many of the world’s foremost precious metal, base metal, industrial mineral, coal, and energy operations.
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 six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca. The Company has 52,998,303 shares outstanding, no warrants and no debt and has returned over $24.6 million to shareholders in monthly dividends since declaring commercial production July 2010. 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 production will continue at any specific rate. 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:
Greg Patterson
Corporate Development
303-320-7708
