Gold Resource Corporation Acquires Sixth Property
COLORADO SPRINGS, CO, Jun 20, 2011 -- Gold Resource Corporation (GORO) (NYSE Amex: GORO) is pleased to announce having significantly increased its land position adding a sixth potential high-grade property to the Company's Oaxaca Mining Unit. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico.
The Company staked several new claims including El Chamizo consisting of 26,386 hectares (101 square miles) connecting the Company's Alta Gracia property to its El Rey property effectively consolidating approximately 48 kilometers (29 miles) along strike of the important north 70 west regional structural corridor. With this new acquisition, Gold Resource Corporation has 100% interest in 60,998 hectares (235 square miles) located in Oaxaca, Mexico. The combined claims represent the Company's sixth property added to its Oaxaca Mining Unit (see map), now consisting of El Aguila, El Rey, Alta Gracia, Las Margaritas, El Chamizo and Solaga. In addition, the Company staked a 2000 hectare (7 square miles) claim located on the southeast end of the corridor which adds to and increases the size of the Aguila Project.
Gold Resource Corporation's President, Mr. Jason Reid, stated, "After much work and patience, we have methodically consolidated a dominant land position now connecting five properties on what we believe will become one of the most important mineralized structural corridors in southern Mexico."
"On the southeast end of the corridor is our Aguila Project, home to our largest high-grade polymetallic deposit discovered to date, La Arista. On the corridor's northwest end is the Company's El Rey property, a high-grade gold vein system established by our limited drilling in 2008. In the middle of the corridor is the Alta Gracia property, previously mined on a small scale in the 1970s, where a recent Company drill program commenced testing many high-grade targets. The new property Chamizo, located between Alta Gracia and El Rey, is a major increase to our land holdings along what we believe is a highly mineralized corridor," stated Mr. Reid.
Mr. Reid continued, "This acquisition is in line with our long term objective of having multiple high-grade properties feeding ore to the Aguila mill. Our approach should keep capital expenditures on developing additional properties to a minimum, deliver a pipeline of projects for future growth and provide for longevity of 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. 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.
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SOURCE: Gold Resource Corporation