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Gold Resource intercepts Baja vein at La Arista deposit in Mexico; up 7%

Published: 23:09 04 Nov 2010 GMT

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Gold Resource Corp (NYSE Amex:GORO) said Thursday that underground development work at its La Arista vein system deposit in Oaxaca, Mexico has intercepted the Baja vein, one of the two predominant veins, at rather high grades. 

La Arista is a polymetallic deposit with high-grade gold and silver, as well as by-product credits of copper, lead and zinc.  It is made up of multiple en echelon veins with the two majors being the Baja and the Arista veins.   

The company began development of the deposit’s underground mine in February.

“We expected a two to three meter wide vein at this level, but were quite pleased to have revealed a solidly mineralized structure six meters wide at the point of interception," said president Jason Reid. 

The highest sample returned 14.6g/t gold and 2,300g/t silver, plus base metals over 1.5 metres.

"Though these are just preliminary samples and not an anticipated average grade, we are extremely pleased with the indication of such high-grade.  The vein is now in the process of being sampled systematically and in detail,” he continued.

Having reached the Baja vein, the company is now targeting to intercept the parallel Arista vein at an estimated 30 metres. Once exposed, both veins are schedule to begin mining.

The company said the Arista vein system’s mineralization remains open both laterally, as well as at depth, and it targets processing polymetallic Arista ore in July of next year. 

Gold Resource believes revenues from the base metal content of the ore, when used as by-product credits, could fund all cash costs of the operation.

“The near term stockpiling of La Arista ore will assist us in making a seamless transition from processing the company’s El Aguila open pit ore, presently being mined and milled, to the much higher grade Arista underground ore,” concluded Reid.

The company was up more than 7% on Thursday, trading at $23.21 as of 2:49pm ET.

Gold Resources One2One Forum presentation - December 9th 2010

Gold Resources One2One Forum presentation - December 9th 2010

on 23/12/10