Gold Resource Corp., www.Goldresourcecorp.com – a gold and silver mining firm with substantial acreage in Oaxaca, Mexico, announced today that the Company’s 100% owned El Aguila project has successfully gone into commercial production.
In addition to this exciting news, GORO has also announced the appointment of industry veteran, Mr. Jason Reid, as President of the Company.
CEO of GORO, William W. Reid, thanked the team and subcontractors for all their hard work over the last three years in bringing this particular prospect to commercial production status.
Mr. William Reid noted the contributions of the local Totolapam Ejido and logistical support from the nearby towns of Las Margaritas, San Jose de Gracia and Totolapam, as well as the Company’s strategic partner, Hochschild Mining plc, as being instrumental.
The Company initially made the decision in 2007, due in large part to the superb economics at the site, which indicated a return on investment within a year. The Company’s current projection estimates the mine life at about nine years with easy potential to double due to the recent (June 10 report) discovery of a new high-grade gold and silver area of mineralization.
William Reid hailed this as yet another successful example of GORO’s strategy to acquire low-cost, high margin projects and produce from them ASAP while maintaining a disciplined capital structure. He also noted the significant value for shareholders which this strategy is capable of generating.
The GORO Board of Directors approved the appointment of Jason Reid to President unanimously – William stepped down while retaining the CEO position, and Jason was promoted from VP Corporate Development.
William Reid spoke of his overwhelming sense of personal pride at the appointment, pointing to Jason’s hard work since the Company’s inception four years ago, and his instrumentality in achieving current successes.
Mr. Jason Reid got right down to business, characterizing the commercial production announcement as a milestone for the Company and its shareholders, saying that he was “honored to continue working with our competent, professional and hard-working group of people”, and pledging his commitment to bring in even bigger returns for GORO shareholders.
Jason Reid also pointed out the Company’s excellent cash position, with no debt and zero warrants, as he pledged to move ever forward seeking out additional low-cost gold and silver assets which can be translated into dividends.
Jason Reid wrapped things up by saying that the majority of the truly difficult work of the mining business had already been overcome, from logistics to personnel, and that the Company was now entering a phase of aggressive growth and production, setting a target for tripling of annual production to 200k precious metal gold-equivalent ounces within three years at zero cash cost using industry standard base metal byproduct credits.