Gold Resource Corp (GORO)

[Grouper]

Press Release Source: Gold Resource Corporation


Progress Update at Gold Resource Corporation's El Aguila Project; Continued El Aire High-Grade Vein Intercepts
Wednesday June 20, 6:00 am ET


DENVER, June 20 /PRNewswire-FirstCall/ -- Gold Resource Corporation (GRC) (OTC Bulletin Board: GORO - News) is moving forward on all fronts at its El Aguila Project in the southern state of Oaxaca, Mexico, targeting gold production mid-2008. Continued high-grade drill intercepts, acquisition of long lead time items, local approval of the new road to the El Aguila mill site, and design detail of the mill incorporating optimization of the flow sheet are only a few of the many actions keeping GRC on target as an emerging gold producer.
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William Reid, President of Gold Resource Corporation stated, "The El Aguila Project exploration continues to return exciting drill results underscoring our belief in a very robust, high-grade system. One of our focus areas is the El Aire vein system where we are following it both along strike and with depth. The vein width appears to vary between 1 and 4 meters and we recently intercepted our best value so far in this vein system with a gold equivalent 35.77 g/t (or 1.15 oz/tonne AuEq*) over 1 meter (Hole 7036, 72 deg, at 82 meters, 1 meter of 11.85 g/t gold, 315.00 g/t silver, 9.55% lead and 5.09% zinc). The actual gold value is impressive and at 80 meters, which is our deepest intercept yet, may indicate increasing gold values with depth. Drilling will continue to expand and define this high-grade vein system."

"Other areas include drilling the intersection of the El Aire vein with our main N70W possible feeder structure where we have several new intersections over 4 to 7 meters with our best intercept at a shallow 9 meters of depth running a gold equivalent value of 27.99 g/t (or 0.90 oz/tonne AuEq*) over 1 meter (Hole 7023, 90 deg, at 9 meters, 1 meter of 1.30 g/t gold, 1130.00 g/t silver, 1.39% lead and 0.68% zinc). We are determining whether this area could be another open pit or reflects the surface expression of a vein system," continued Mr. Reid.

"Another very exciting area is Andesite Hill, halfway between our El Aguila open pit deposit and the El Aire vein system, where original surface samples were up to 3,000 g/tonne silver. Our drilling has encountered significant structural preparation over 20 to 30 meter zones containing abundant upper-level pathfinder minerals. This vein area is being drilled to depth," stated Mr. Reid.

"As we have previously stated, based on our Scoping Study with estimated cash costs to produce an ounce of gold at +/- $100 per ounce, the capital payback for the El Aguila project is estimated at six months and therefore we feel comfortable placing this project into production with an initial three year life and that remains our focus," stated Mr. Reid. GRC is targeting 70,000 ounces of gold the first full year of operation, 90,000 ounces the second year and 100,000 ounces the third year of gold (or gold equivalent).

Gold Resource has recently purchased one of the longer lead time items with the acquisition of a used 1070hp Allis Chalmers ball mill which is now being reconditioned. This acquisition has enabled GRC to avoid the extended lead time necessary for purchasing a new ball mill. GRC is pleased it has also recently been given approval from the local Ejido (agrarian community) for GRC's construction of the new 4 kilometer project road which is now in the process of being put out to bid.

Recent metallurgical confirmation and optimization tests have been very positive which should result in several operating cost reductions. By applying a very simple pre-aeration step, cyanide consumption (generally the largest reagent cost) may be reduced by 2/3rds from the 1.6 kg/tonne used in our Scoping Study economics to 0.5 kg/tonne and the leach time reduced from 72 hours to 60 hours. These changes have been incorporated into the detailed mill design for significant cost savings.

Project permitting, detailed mill design, infrastructure and design/procurement of GRC's onsite housing and office facilities are among the many activities aggressively being pursued.

Mr. Reid concluded, "Gold Resource remains focused on its first three years of production. It is our belief that by attaining gold production and cash flow at the earliest possible date, we can build Gold Resource for the benefit of the shareholders with the least dilution possible. The El Aguila Project's upside potential is as exciting geologically as most any exploration play today while successful production will mitigate the downside risk inherent in exploration. Gold Resource Corporation is moving forward on all fronts as an emerging gold producer".

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 owns 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. For more information, please visit GRC's website, located at http://www.Goldresourcecorp.com and read the Company's 10-KSB 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 "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 GRC's strategy, future production, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to GRC on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-KSB and Form SB-2 filed with the Securities and Exchange Commission.


Contacts:
Jason Reid, Corp. Development Andrew J. Barwicki
Gold Resource Corporation Investor Relations
303-320-7708 516-662-9461