Gold Resource Corporation Signs Drill Contract
DENVER, Oct. 19 /PRNewswire-FirstCall/ — Gold Resource Corporation (GRC) (BULLETIN BOARD: GORO) , today announced it has signed a contract with Servicios de Perforacion Insemin S.A. de C.V., a Mexican subsidiary of R&R Incorporated, to perform a 10,000-meter core drilling program at the Company’s El Aguila high-grade gold and silver project in the state of Oaxaca, Mexico. The initial drilling objective will be to delineate and expand the Company’s previously discovered shallow, high-grade mineralization at El Aguila. Drilling is expected to commence within two weeks and will continue for approximately six months.
William W. Reid, GRC’s president, said, “We are seeking to expand upon several earlier high-grade intercepts, including 16 meters of 6.56 grams per ton (g/t) (0.19 ounces/ton) gold, 12 meters of 10.20 g/t (0.30 ounces/ton) gold and 6 meters of 18.79 g/t (0.55 ounces/ton) gold, all of which would be mineable as an open pit.”
Reid added, “Additional drilling will focus on similar open pit targets identified by numerous high-grade, rock chip surface samples with gold as high as 35 g/t (1 ounce/ton) and silver as high as 3,170 g/t (92 ounces/ton). We also intend to follow up on our discovery of a possible high-grade vein found in our previous drilling. We are particularly excited about drilling along a specific 2km structure where at one end we intercepted four meters of 54.71 g/t (1.60 ounces/ton) gold and 701 g/t (20.45 ounces/ton) silver and the other end we intercepted four meters of 1.9 g/t (0.06 ounces/ton) gold and 755 g/t (22 ounces/ton) silver.”
Gold Resource Corporation began trading on the OTC Bulletin Board under the symbol GORO on September 14, 2006, following its IPO funding of 4,600,000 shares at $1.00/share.
About GRC
GRC is a production-oriented mining company pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The company is specifically focused on three potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca. For more information, please visit GRC’s website, located at http://www.goldresourcecorp.com/.
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 “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 GRC’s strategy, future production, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to GRC on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. The Company’s actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company’s Form SB-2 filed with the Securities and Exchange Commission.
Gold Resource Corporation
CONTACT: William W. Reid, President of Gold Resource Corporation,+1-303-320-7708; or Geoff High of Pfeiffer High Investor Relations, Inc.,+1-303-393-7044, for Gold Resource Corporation
Web site: http://www.goldresourcecorp.com/