Gold Resource Corp. (GORO.OB) Announces Underground Mining Contract for Further Development of Its Aguila Project

In the company’s news yesterday,

Gold Resource Corp. announced that it has signed an underground mine contract for development of its El Aguila Project’s Arista deposit, located in Oaxaca, Mexico.

Comsa S.A. de C.V. has been commissioned to develop 1,500 meters of decline ramp and several other works of underground development for the Arista mine. An experienced underground mine contractor, Comsa has performed underground mine development for companies including Minera Penoles and Minera Hecla.

William W. Reid, President of Gold Resource Corporation, stated, “We are very excited to have signed this underground mining contract as it signals an important milestone in the life of this project. As announced in the December 1, 2009 press release, our internal analysis of the high-grade Arista vein system should provide us with 8 years or more of production, after the first twelve months of production from our high-grade gold and silver El Aguila open pit. The Arista vein system’s mineralization remains open both laterally as well as at depth with potential to provide additional years beyond the Aguila Project’s current mine life total of 9 years.”

Mr. Reid added, “The Arista vein system’s high-grade gold and silver mineralization is coupled with base metals of copper, lead and zinc. We believe revenues from the base metal content of the ore, when used as by-product credits, will pay the cash costs of the operation. Consequently, at full production, our targeted 200,000 ounces of precious metal gold equivalent per year could potentially be produced at ‘zero’ cost.”

William W. Reid futher commented, “It is our goal to make a seamless transition from processing the Company’s El Aguila open pit ore, presently being mined and milled, to the Arista underground ore, which is now under development.”

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