Gold Resource Corporation Reports High Grade Las Margaritas Drill Intercepts Returning 2.85 Meters of 27.90 g/t Gold, 2600 g/t Silver
COLORADO SPRINGS, CO -- (Marketwire) -- 01/08/13 -- Gold Resource Corporation (NYSE MKT: GORO) (the Company) today announced high-grade mineralization at its Las Margaritas property with drill intercepts including 2.85 meters of 27.90 grams (0.89 ounces) per tonne gold and 2600 grams (84 ounces) per tonne silver. Gold Resource Corporation is a low-cost gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $69 million to shareholders in monthly dividends since declaring commercial production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver.
Las Margaritas drill highlights include (meters down hole, not true width):
Hole # 312011 (-45 deg)
- 2.85 meters of 27.90 g/t gold, 2600 g/t silver
- 0.69 meters of 1.76 g/t gold, 1100 g/t silver
The Company's drill program at Las Margaritas intends to test various structural and mineralized exploration targets. Mapping, stream sediment geochemical sampling and outcrop rock chip surface samples generated targets and returned rock chip samples as high as 6.29 grams per tonne gold and 4150 grams per tonne silver. Hole #312011 is one of several reconnaissance drill holes from the ongoing Las Margaritas drill program.
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Hole # Angle From Interval Au Ag
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(deg) Meters Meters g/t g/t
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312011 -45 49.32 2.85 27.90 2600
124.72 0.85 0.40 451
125.57 0.69 1.76 1100
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312012 -67 82.79 1.61 0.24 871
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Assays by ALS Chemex, Vancouver, BC Canada
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The Company's Las Margaritas property is mentioned in the well-known 1905 Mexican government publication by J.R. Southworth entitled The Mines of Mexico as "...the place in which has been found some of the richest ores in Mexico, some of the ores having reached the value of 18,000 ounces (silver) to the ton, and ores are frequently found which assay 4,000 and 5,000 ounces (silver) to the ton."
The Company believes it may be the first to ever drill this prospective high-grade property. Historically, Las Margaritas was mined on a small scale artisanal basis prior to the 1910 Mexican Revolution and has remained dormant for the most part since. The Company added the property to its portfolio as it consolidated land along the north 70 west geologically significant structural corridor in this region.
As with all six of its Oaxaca, Mexico properties, the Company targets additional deposit discoveries at Las Margaritas where high-grade ore could be trucked to its strategically located mill at its El Aguila Project. The existing El Aguila mill complex has both a flotation and agitated leach circuit, so the Company is well positioned to process any type of ore it may discover. The Company's strategy is to bring multiple properties within trucking distance online to feed ore to the mill. This will keep capital costs to a minimum on additional project development and maximize head grades processed through the mill, while bringing additional projects on line in an expedited manner.
The Las Margaritas gold and silver mineralization discovered to date does not show any appreciable base metals, so this precious metal mineralization could potentially be processed through the El Aguila Mill's agitated leach circuit. Any future production from the agitated leach circuit would add to the Company's current production from the mill's flotation circuit fed by the Arista underground polymetallic mine.
"These initial high-grade gold and silver drill intercepts at Las Margaritas not only confirm mineralization at depth, but bolster our belief we are exploring a powerful and extensive mineralized trend," stated Gold Resource Corporation's President, Mr. Jason Reid. "At one end of our mineralized trend we have our producing La Arista deposit located on our El Aguila Project. Forty-eight kilometers away along the trend, we discovered a high-grade gold vein system at our El Rey property. Along the same structural corridor, near the middle of the trend, we have drilled mineralized structures at our Alta Gracia property during its initial drill program. With these new high-grade drill intercepts at Las Margaritas, the mineralized structural corridor looks increasingly prospective for additional deposit discovery. We have the dominant land position along this extensive mineralized corridor and are excited with our exploration potential targeting additional mineralization for future production."
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 six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 52,679,369 shares outstanding, no warrants and no debt. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver. 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.
Cautionary Statements:
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 SEC.
Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com