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NASDAQ : GORO / Low operating costs and producing high returns on capital.
Message: NR 43-101 report 1.4m au eq oz's II
COLORADO SPRINGS, Colo., July 23, 2012 /PRNewswire/ -- Gold Resource Corporation (NYSE MKT: GORO) is pleased to report the final results from an independent resource estimate compiled from drilling data at the Company's La Arista vein system at its El Aguila Project in the southern state of Oaxaca, Mexico. Indicated and inferred resources include approximately 1.4 million gold equivalent ounces (all metals) at 1 gram gold equivalent cutoff confirming the previously announced preliminary results. The estimate was prepared by the Denver engineering firm of Pincock, Allen & Holt in compliance with the standards established by Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101").
Investors are urged to read the report in its entirety on the Company's website. The Company commissioned the report under NI 43-101 in an effort to provide resource estimates similar to those provided by its industry peer group, most of which report under NI 43-101. The resource estimates provided in this study are not considered "proven and probable reserves" as defined by the U.S. Securities and Exchange Commission ("SEC") in Industry Guide 7 ("Guide 7") and U.S. investors are strongly cautioned not to assume that all or any part of the indicated or inferred resources will ever be converted into reserves as defined by the SEC.
The full report is available on the Company's website and can be viewed using the following link: http://www.goldresourcecorp.com/ind-resource-report.php
"We are pleased with the final results of this independent study of our drilling as the analysis confirms the high-grade nature of our deposit at La Arista," stated Mr. William Reid, Chief Executive Officer of Gold Resource. "This independent analysis required application of certain constraints and restrictions that we believe make it a more conservative estimate than our original internal estimates. This can be seen on pages 113 and 114 of the report which acknowledges an underestimation of the PA&H resource estimate by as much as 24% of all metal gold equivalent when compared to what was actually mined. The report provides its own important insights while verifying our high-grade vein system."
A report prepared in accordance with NI 43-101 may state measured, indicated and inferred resources, which are terms for measurements that are permitted in Canada but generally not permitted in filings made with the U.S. SEC. The estimation of indicated resources and inferred resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. One consequence of these differences is that "resources" calculated in accordance with Canadian standards are not "reserves" under Guide 7 standards of the U.S. SEC. U.S. investors should be aware that Gold Resource Corporation has not conducted a feasibility study for any of its properties located in Mexico and as such, the properties do not have "reserves" as defined by Guide 7. The SEC only permits issuers to report "mineralized material" in tonnage and average grade without reference to contained ounces. Under U.S. regulations, the tonnage and average grade described by us would be characterized as mineralized material. We provide such disclosure about our exploration properties to allow a means of comparing our projects to those of other companies in the mining industry, many of which are Canadian and report pursuant to NI 43-101. Furthermore, mineralized material identified on our properties does not and may never have demonstrated economic or legal viability.
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