COLORADO SPRINGS, CO, Mar 13, 2013 - Gold Resource Corporation (NYSE MKT: GORO) (the Company) today announced the acquisition of two gold and silver properties in Oaxaca, Mexico from Almaden Minerals. Both properties are located along the mineralized trend and geologic structural corridor running north 70 west of which the Company has land concessions approximately 48 kilometers along strike. In addition to adding these two new properties, the Company has terminated its lease on the Solaga property located north of its El Aguila Project in Oaxaca. Gold Resource Corporation is a low-cost gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $75 million to shareholders in monthly dividends since declaring commercial production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver.
The Company signed an agreement with Almaden Minerals to purchase 100% interest in the two properties, Cerro Colorado and El Fuego, for $100,000 USD cash. The purchase is subject to a 2% net smelter return royalty in favor of Almaden Minerals on any future production from the properties.
The Cerro Colorado property consists of 1,860 hectares surrounded by the Company's existing El Chamizo land concession. The property has intense hydrothermal alteration developed in volcanic rock intruded by quartz-feldspar porphyritic rock displaying textures consistent with epithermal systems. Anomalous gold and silver values exist in rock chip samples. This property will become part of and enlarge the Company's El Chamizo property.
The El Fuego property consists of 2,554 hectares and is located south of the Company's Alta Gracia and El Chamizo properties along the North 70 West mineralized structural corridor. Almaden reports a low sulphidation, quartz-adularia, epithermal gold-silver vein and breccia system on the property. In addition, they report surface samples from old mine dumps as high as 29.9 grams per tonne gold and 953 grams per tonne silver. An initial five hole drill program described in an Almaden report stated, "The distribution of gold, silver, and the trace elements molybdenum and arsenic, suggest that the explored portion of the deposit is located in the upper epithermal level where fluid and vapor plumes have extended above a horizon of concentrated precious metal deposition. The geochemical trends indicate that higher precious metal values may be present downdip from the sector that has been drilled."
"We are pleased to further consolidate our dominant land position with these two prospective properties along what we believe to be a very important mineralized trend," stated Gold Resource Corporation's President Mr. Jason Reid. "By dropping Solaga, adding the new Cerro Colorado to our much larger Chamizo property and adding the El Fuego Property to our portfolio, our Oaxaca Mining unit will now focus entirely on this mineralized trend with six total properties covering over 200 square miles. With our understanding and geologic model of the area, we believe both new properties will significantly add to our exploration potential, especially El Fuego's epithermal veins where Almaden Minerals believes previous drilling may not have drilled deep enough. This possible scenario fits our geologic model where the top of the mineralized horizon in this epithermal system, like our Arista deposit for example, is below the current land surface by approximately 100 meters. Although these property additions strengthen our significant position along trend for future exploration, we remain focused on exploration and production from our El Aguila Project's Arista deposit followed by continued exploration and development at our Las Margaritas, Alta Gracia and El Rey properties."
About Almaden Minerals:
Almaden Minerals is a grassroots exploration company specializing in the generation of new mineral projects with world class potential. Almaden focuses on new gold, silver and copper prospects in the western half of North America. Headquartered in Vancouver, Canada, Almaden is listed on both the Toronto and New York Stock Exchanges.
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 52,679,369 shares outstanding, no warrants and no debt. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. 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 SEC.
SOURCE Gold Resource Corporation