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Gold Resource Provides Update on Aguila Mill Expansion

Gold Resource Corporation is pleased to update its shareholders on its Aguila mill expansion, including flotation circuit ball mill delivery.

Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $85 million to shareholders in monthly dividends since declaring commercial production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

The Company’s Aguila mill expansion to a nominal 1500 tonnes per day throughput capacity includes delivery of the flotation circuit’s second ball mill to the site. With the new ball mill foundation complete, the mill’s sole plates are being installed in preparation for final ball mill installation. The new mill feed conveyor is on site as well and preparations for its installation are underway (see images). All the new concrete in the flotation area is complete in preparation for installation of the new floatation cells.

Other construction includes the Aguila Project’s new diesel generated power plant located near the Arista mine portal. This secondary power plant consists of four 2 megawatt each Caterpillar generators. The new power plant will have the ability to provide electricity to the underground Arista mine, the Aguila mill or both when needed. With two independent power plants, the initial power plant being located at the Aguila mill, the project is expected to have not only drastically greater energy capacity but greater energy flexibility. As the Aguila mill expands and the Arista mine development continues on strike and depth, this secondary power plant is expected to help meet the Aguila Project’s electricity needs for the foreseeable future.

The Company targets to be fully complete with mill expansion by year end.


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