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Gold Resource Corp’s El Aguila project mill starting up, production set to begin before yr-end as planned

Last updated: 20:18 09 Dec 2009 GMT, First published: 21:18 09 Dec 2009 GMT

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Gold Resource Corporation (OTCBB: GORO) said commissioning of the initial flotation circuit is underway at the mill of its El Aguila gold project the southern Mexican state of Oaxaca, and first concentrate production looks set to begin before the end of the year, as planned.

President William Reid said: “The commissioning of our El Aguila Mill has begun. We have initiated start-up of our diesel generated power plant. The large ball mill, the initial flotation circuit and the concentrate filter press are in final shakedown as well. We target first concentrate production soon and if everything goes well this could be before the end of the year.”

“We have come a long way in a short amount of time. We expect to emerge as a low cost producer and be in the position to take advantage of these historically high gold prices.”

In mid-August, Gold Resource Corp was granted the Mexican Federal permit to mine El Aguila’s open pit deposit.

Earlier this month the company released the results of an internal analysis of step-out drilling at its Arista deposit at El Aguila.  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 had noted that using prices of US$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 (gold equivalent) ounces,” Gold Resource Corp had added.

Gold Resources One2One Forum presentation - December 9th 2010

Gold Resources One2One Forum presentation - December 9th 2010

on 23/12/10