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Gold Resource Corp sees July 1 as possible start of commercial production at El Aguila

Published: 20:56 10 Jun 2010 BST

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Gold Resource Corporation (OTC:GORO, FSE: GIH) told investors that as it continues to ramp-up to commercial production at its El Aguila project in Mexico, it has shipped additional concentrates, selling 102 tonnes on June 7 2010. The company believes it may now reach commercial production by July.

"We are approaching an acceptable balance between throughput, recovery and concentrate grades. If optimization continues this way, of which there is no guarantee, we see the possibility of declaring Commercial Production July 1st", Gold Resource Corp President William W Reid commented.

Previously, the company shipped 52 tonnes of concentrates on April 14 2010 and a further 52 tonnes in a second shipment on May 12 2010. Gold Resource Corp noted that until Commercial Production is declared, all concentrate sales are not considered revenue but are instead used to offset capital costs.

Earlier this month, Gold Resource Corp reported a new high-grade gold and silver discovery at El Aguila with intercepts including 9.9 g/t gold and 598 g/t silver over 0.73 meters.

The drill program at Aguila was accelerated in February to test new target areas. Gold Resource Corp said that the new discovery could represent a new vein system over 150 meters northwest of the Arista deposit. This mineralization is located along the main San Jose structural corridor between the Arista vein system and the El Aguila open pit mine. This corridor has returned high-grade rock chip surface samples for the 8 km (kilometers) that it has been sampled.

The company said that the discovery confirmed high-grade mineralization trending North 70 West, in addition to the Mirador vein and the Nariz vein, along this important structural corridor.

Recent drill highlights from the project include 0.73 meters grading 9.9 g/t (grammes per tonne) gold, 598 g/t silver, 1.56% copper, 2.13%lead, 2.29% zinc for a gold equivalent grade of 22.27 g/t from Hole # 109011 and 0.64 meters of 14.2 g/t gold, 80 g/t silver, 0.67% copper, 5.59%lead, 13.95% zinc for a gold equivalent grade of 25.01 g/t from Hole # 110003. Recent drill results included 0.73 metres at 22.27 g/t gold equivalent, 0.64 metres at 25.01 g/t gold equivalent, 0.3 metres at 20.93 g/t gold equivalent and 0.73 metres at 13.04 g/t gold equivalent.

“This new discovery suggests that potential exists for multiple discoveries of mineralized veins along the two kilometers between the high-grade open pit deposit and the high-grade Arista vein deposits...we believe these high-grade values in the open pit are part of a possible feeder vein, that is also trending north 70 west, and is part of this important structural corridor which includes our high-grade La Arista vein system and now our new discovery,” said president and chief executive of Gold Resource Corp William Reid.

Gold Resources One2One Forum presentation - December 9th 2010

Gold Resources One2One Forum presentation - December 9th 2010

on 23/12/10