-- Posted Wednesday, 12 May 2010 | Digg This Article
| | Source: GoldSeek.com
DENVER, CO--(Marketwire - 05/12/10) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) is pleased to provide an update on its El Aguila Project including shipping additional concentrates for sale from its El Aguila Project as it ramps-up nearing Commercial Production. Gold Resource Corporation's El Aguila Project is located in Oaxaca, Mexico.
William W. Reid, President of Gold Resource Corporation, stated, "We are very pleased with the progress of mill commissioning and with the operating skills achieved by our people in a relatively short time. During initial mill commissioning and training you do not process good ore until mill optimization is satisfactory. We began running with a grade of material approximately 2.5 grams per tonne gold, which is below our cut-off grade, during the mechanical start and stop period of the mill commissioning. Once continuous operation was achieved we switched to our cutoff grade of between 3.5-4.0 grams per tonne gold with the focus turning to operator training. We are impressed with performance so far in that the mill is achieving a +200 to 1 concentration ratio with metallurgical recoveries consistently around the mid 70% range. We are now increasing the grade of ore to the mill up to or above our targeted average grade of approximately 7.5 grams per tonne gold. Once operations consistently achieve the plus 80% recovery range we will then up the tonnage throughput to 80% or more of the designed capacity (for this open pit ore the designed capacity is ~800 tonnes per day) at which point we plan to declare Commercial Production. Overall, mill commissioning, training, mill performance and concentrate sales are closing in on commercial production levels."
Gold Resource Corporation continues to sell concentrates as it ramps-up to Commercial Production. Until Commercial Production is declared, all concentrate sales are not considered revenue but are used to offset capital costs.
Mr. Reid continued, "Mining the El Aguila open pit is approximately 70% complete with mined ore residing in stockpiles ready to be processed. The final 30% open pit mining now underway also happens to be the highest grade part of the ore body. We have been impressed with some very high grade values, for an open pit, as indicated by our blast hole drilling. Grades of 20 to 40 grams per tonne gold (0.6 to 1.2 ounces per tonne gold) over several meters are not uncommon with the occasional +100 grams per tonne gold (3.2 ounces gold per tonne) assays. This not only bodes well for the resulting grade to be processed but may also be indicative of a feeder vein for this mineralization which has yet to be tested."
Development of the underground Arista mine is progressing and the surface facility is almost complete. The main haulage decline (-10% angle) has been driven 200 meters and the auxiliary decline (-14% angle), primarily for ventilation, secondary access and safety, has been driven 150 meters. The Company looks forward to the point of the first crosscut to be driven from the main decline that will intersect the La Arista high-grade polymetallic vein system.
Mr. Reid stated, "Exploration continues to underscore the size and robust nature of the El Aguila Project geologic system. We continue our practice of bringing in world recognized experts in these types of geologic systems and without fail they are all impressed. Each has commented on the world class grades we possess and the tremendous potential that is being recognized. Two drills continue to test new target areas at the El Aguila Project as well as a third drill is coming to begin exploration at our Las Margaritas property."
Geologic field work at Las Margaritas has generated several high grade drill targets to test including up to +4000 grams per tonne silver and up to +7 grams per tonne gold rock outcrop samples. Gold Resource Corporation will be the first to drill this historic high grade silver district. Las Margaritas was mined on a small scale most of which was pre-Mexican revolution era before the aid of exploration drill rigs and heavy equipment. GRC has 100% interest in this district and Las Margaritas will be the third of the Company's five high-grade properties to be drilled.
Follow up drainage sampling is planned for the El Rey Project where the Company previously discovered a high grade gold vein system. El Rey's current exploration is focused on expanding the known mineralized zones. GRC's previous drill programs intersected multiple meter intercepts of over 1 ounce per tonne gold, with the highest intercept being 1 meter of 132 grams per tonne gold. This sampling program is to assist in the development of the next drill program at El Rey. Gold Resource Corporation has 100% interest in El Rey.
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in five potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 48,700,284 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
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 "plan," "target," "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 Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
-- Posted Wednesday, 12 May 2010 | Digg This Article | Source: GoldSeek.com
