Gold Resource Corp makes first sale shipment from El Aguila

Gold Resource Corporation (OTC: GORO, FSE: GIH) (GRC) announced the first shipment of concentrates for sale from its El Aguila project in Oaxaca, Mexico. The first shipment has now been sold under contract to Consorcio Minero de Mexico Cormin Mex - a Trafigura Group company - which will take delivery at a Mexican port for ultimate shipment to a smelter. 

GRC noted that the Trafigura Group is the second largest buyer of concentrates in the world.

“This is an important milestone in the progress of the El Aguila Project.  It has taken essentially two months to get the mill running consistently from a mechanical point of view”, GRC President William W Reid said. “With the mechanical aspects now behind us, our focus has shifted to the last part of commissioning, optimizing the mill operationally and metallurgically.”

The company noted that as it ramps up to El Aguila’s designed throughput and designed recovery, it is still running low grade ore. It may take several more weeks to optimize the grinding and flotation circuits and achieve the level of training and operator experience necessary before commercial production can be declared, GRC stated.

“We are very pleased with the commitment and accomplishments of our people as they work through these important steps”, Reid added.

The El Aguila project, where production began in February 2010, is the GRC’s flagship asset and it is projected to produce 70,000 ounces of gold in the first year of operation.

Hochschild Mining (LSE: HOC), the world’s second largest primary silver producer and an underground mining specialist, has been an avid supporter of GRC.  The Peru based, London listed silver producer has invested a total of US$59.2 million in GRC to date. In March, Hochschild increased its holding to 28.7% after it subscribed for 600,000 shares in a private placement and acquired a further 440,500 shares in the market.

Initially, the El Aguila mine will initially be an open pit gold and silver mine before moving underground to tap into an exceptionally rich polymetallic ore body. Currently, El Aguila hosts three main deposits - the Aguila open pit, El Aire vein system and Arista vein system.

http://www.proactiveinvestors.com.au/companies/news/6500/gold-resource-corp-makes-first-sale-shipment-from-el-aguila-6500.html