-- Posted Wednesday, 10 November 2010 | Digg This Article
| | Source: GoldSeek.com
Gold Resource Corporation (GORO) (NYSE Amex: GORO) announced today that it is pleased with its first quarter of commercial production at its El Aguila Project and will host a shareholder conference call November 10, 2010. The Company produced 7,351 ounces of gold Q3 at a cash cost of $249/ounce. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
The El Aguila Project produced a gross mine profit of $6.7 million for Q3. The Company had a net loss of $536,835 or ($0.02/share) due primarily to expensing continued construction costs and to non-cash items.
Daily throughput for Q3 averaged 638 tonnes / day compared to the targeted 800 tonnes / day. Mill recovery averaged 81% compared to the targeted 90% recovery. Mill head grade averaged 4.8 grams / tonne compared to our targeted 7.3 grams / tonne, as lower grade ore was processed in this start-up mode. Mill optimization and ramp-up continues.
Gold Resource Corporation's President, Mr. Jason Reid, stated, "It is positive that even with the start-up of initial operations, the project has demonstrated its low operating costs of less than $1 million per month and produced a mine gross profit of $6.7 million. This first quarter of commercial production successfully positions GORO in the low cost peer group of gold producers."
Mr. Jason Reid continued, "Consistent with our long term objective to return meaningful dividends to the owners of the Company, using cash flow generated from operations, Gold Resource Corporation declared and paid cash dividends to its shareholders totaling $0.09 per share during the third quarter."
"As we target higher average grade ore and a greater production level in Q4, not only should our bottom line increase, we expect to reduce unit cash cost per ounce. With continued optimization we look forward to the fourth quarter," stated Mr. Jason Reid.
Gold Resource Corporation's CEO, Mr. William W. Reid, will host a 45 minute conference call Wednesday, November 10, 2010 at 1:00 EST. Mr. William Reid will update shareholders on Q3 results followed by a Question & Answer period. The conference call will be recorded and posted to the Company's website in 3 to 5 business days.
Date: Wednesday, November 10, 2010
Time: 1:00PM EST (11:00 AM Mountain)
Attendee Access Information:
Title: Gold Resource Corporation Call
Host Name: William W. Reid
Company Name: Gold Resource Corporation
US/CAN Toll free: 1-877-341-0792
Int'l Toll: 1-719-234-7878
Passcode: 556257
Please dial-in to the meeting at least 5-10 minutes prior to the start time using the attendee phone number and passcode.
This call will be recorded and posted to the Company's website in 3-5 business days.
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 52,998,303 shares outstanding, zero warrants and zero debt. 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 production will continue at any specific rate. 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:
Greg Patterson
Corporate Development
303-320-7708
-- Posted Wednesday, 10 November 2010 | Digg This Article | Source: GoldSeek.com
