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Gold Resource Corp increases target for El Aguila to 3.5 million gold equivalent ounces

Last updated: 00:25 02 Dec 2009 GMT, First published: 01:25 02 Dec 2009 GMT

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Shares in Gold Resource Corporation (OTCBB: GORO) (FRANKFURT: GIH) were in demand again today after the company released the results of an internal analysis of step-out drilling at its Arista deposit. The Arista deposit's vein system is part of the larger El Aguila Project in Oaxaca, Mexico, were the company is moving into production.


Gold Resource Corp reported that estimates of in-place mineralized material at the Arista deposit, based on modelling of the Arista and Baja veins, equalled 2.962 million tonnes @ 6.50 grams per tonne (g/t) gold (AU), 506 g/t silver (Ag), 0.60% copper (Cu), 2.24% Lead (Pb), 6.75% zinc (Zn) over a nominal 3.6 meters true width.


The company noted that using prices of $950/ounce for gold, $17/ounce for silver, $2.70/pound for copper, $1/lb for lead and $0.95/lb for zinc, the gold equivalent (AuEq) resource was 2.962 million tonnes @ 23 g/t.


“This AuEq per tonne value multiplied by the estimated 2,962,000 tonnes equates to an estimated 2,192,000 AuEq ounces,” Gold Resource Corp added. The estimated mineralized material number is an in-place number without regard to recoveries, mining dilution or mining economics.


 “We are pleased that drilling over the past year, with only one drill, has allowed [our total] estimate to now increase to approximately 2.4 million AuEq* ounces and an estimated 9 year mine life,” Gold Resource Corporation's president William W. Reid stated.  “Based on our increased understanding of this exciting, high-grade geologic system, which we believe we have only just begun to test with drilling, we have no hesitation increasing our near term mineralized material target to 3.5 million gold equivalent ounces."


Shares in Gold Resource Corp has performed exceptionally well in recent months, climbing from around $4.00 per share in August to $9.43 today.  With just over 46 million shares in issue and one of the world’s largest silver producers as a significant shareholder (Hochschild Mining (LSE: HOC)), Gold Resource Corp’s looks more robust by the day.

Gold Resources One2One Forum presentation - December 9th 2010

Gold Resources One2One Forum presentation - December 9th 2010

on 23/12/10