COLORADO SPRINGS, CO-- December 17, 2013 - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") announces the expansion of its high-grade Switchback discovery intercepting multiple veins over a 68 meter wide interval. Step-out drilling includes 5.27 meters of 2.93 grams per tonne (0.09 oz/ton) gold, 0.89 meters of 16.95 grams per tonne (0.49 oz/ton) gold and 1.60 meters of 575 grams per tonne (16.79 oz/ton) silver. Gold Resource Corporation is a gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $91 million to shareholders in monthly dividends since declaring production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The new "Switchback" discovery is located on the Company's El Aguila Project approximately 500 meters northeast of the Arista deposit and underground mine (see maps). In June of 2013, the Company first reported two Switchback intercepts with mineralization over 14 and 15 meter wide zones including 2.2 meters of 12.91 grams per tonne gold and 410 grams per tonne silver (see table).
A better drill more suited to reach the Switchback target zone from underground drill stations was recently brought in and has successfully drilled two additional step-out holes. Hole 513055 extended high-grade mineralization stepping out 40 meters to the southeast and hole 513026 stepped out 200 meters along strike to the northwest and 115 meters vertically below previous intercepts (see maps). A third step-out hole is currently underway at Switchback and several additional holes are planned in the coming months to test the target extensions.
"This mineralization is either an extension of the Arista deposit or a parallel vein system 500 meters to the northeast," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "It is very positive to continue to see high-grade gold, silver, copper, lead and zinc associated with these latest drill results. The grades and the drill core at the Switchback look very similar to our veins in the Arista vein system and dramatically speak to the potential size of our high-grade epithermal system on the Aguila Project and our 48 kilometer mineralized structural corridor. If step-out drilling at Switchback continues with similar results we may have our next economic deposit defined sometime next year and plan to position our mine development accordingly."
"Switchback is our highest priority exploration target on the Aguila Project," exclaimed Mr. Barry Devlin, Gold Resource Corporation's Vice President of Exploration. "Follow-up drilling has confirmed previous results and more drill holes are underway to further delineate this exciting new discovery."
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 53,779,369 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