DENVER, April 21, 2011 /PRNewswire/ -- Gold Resource Corporation's (GORO) (NYSE Amex: GORO) El Aguila Project experienced an anomalous regional hail and rain storm which ended in the early morning hours of Wednesday, April 20th. The storm is estimated to have produced over 10 inches of rain within three hours, causing regional and mine power outages, flooding and some equipment damage at the Company's underground Arista mine. The Company is pleased to report no serious injuries to its personnel were sustained, and mill production is expected to be unaffected by the incident. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico.
The regional storm around the Company's El Aguila Project lasted approximately three hours with heavy rain and uncharacteristic hail, some hail in excess of 1/2 inch in diameter. The Company's operations sustained hail damage to automobiles and limited roof damage to various structures. In general, the mill remains unharmed and operational.
The unusual storm's greatest impact was sustained to the Company's Arista underground mine, which experienced flooding of its lower levels along with some equipment damage. The cleanup is expected to last two to three weeks after which mine development will continue.
Gold Resource Corporation's President Mr. Jason Reid stated, "We are very pleased that no one was seriously injured in what amounted to be a freak hail storm for a region unaccustomed to hail, let alone hail and rain of this magnitude. Though we expect a two- to three-week delay of Arista underground mine development from this incident, we also expect our Arista underground ore stockpiles currently at the mill to sustain continued and uninterrupted production of concentrates from our operation. The most important aspect of this incident is the safety and wellbeing of our people, and thankfully they are all fine. Cleanup is underway, and production of gold and silver is continuing."
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 has 100% interest in five potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 52,998,303 shares outstanding, no warrants and no debt. For more information, please visit GRC's website, located at www.Goldresourcecorp.com, and read the Company's 10-K 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 "plan," "target," "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 Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
SOURCE Gold Resource Corporation