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Gold Resource Corp Returns High Grades From New Region, From Where Production Is Forecast Starting In Second Half

|Includes:Gold Resource Corporation (GORO)

Gold Resource Corp (NYSE MKT:GORO) has announced more high grade gold and silver drill results from its Arista deposit in Mexico, drilling 4.7 metres of 3.1 grams per tonne (g/t) gold and 2,658 g/t silver.

The results are from vein Splay 5 at the deposit, a new zone that was announced in March this year. The company is continuing to explore the vein, with the area now having been drilled over 250 metres vertical extent, with mineralization remaining open along strike and at depth.

Mine development is currently drifting toward Splay 5, said the company Wednesday, with expectations to start mining this area during the second half of the year.

"The drill results of 1.7 percent silver and 10.7 grams gold over half a meter within a wider 4.7 meter mineralized intercept of 2.6 kilograms per tonne silver and 3 grams per tonne gold speaks for itself," said president Jason Reid in the statement Wednesday.

"I will add to those exciting grades that the continued vein continuity and mineralization at Splay 5 support our belief the Arista vein system is high-grade, powerful and has potential to grow substantially."

The U.S.-based gold producer, with operations in the southern state of Oaxaca, Mexico, is calling for production of between 80,000 and 100,000 ounces of gold equivalent this year. The company has returned more than $83 million to shareholders in monthly dividends since declaring commerical production in July 2010.

The company has preliminarily targeted the new region from which it reported drill results today, Splay 5, to begin to contribute to production during the third or fourth quarter this year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: GORO