Gold Resource on target for 60,000-ounce or higher full year production

In an update to shareholders, Mexico-focused Gold Resource Corp (AMEX:GORO) said it remains on track to achieve its full year production guidance of between 60,000 and 70,000 ounces of gold equivalent.
Production at its El Aguila project has produced more precious metal in the first two months of the third quarter than the total prior quarter, the company said. Ore grades, mill throughput, and recoveries have improved mineral production.
The El Aguila property is located approximately 120 kilometres southeast of the capital city of Oaxaca, Mexico, and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.
The project entered commercial production at the start of July in 2010, and has been responsible for the company's steady pay out of $24.6 million to shareholders to date, through monthly dividends.
"Our team is doing an excellent job and we are very proud of their continued mill optimizations, mine development and overall accomplishments," said president Jason Reid.
"Presuming mill optimization and throughput levels continue during September, we could potentially see substantial production growth in the third quarter.
"As we have stated before, our production growth is primarily a function of mine development, increasing the number of working stoped and the buildup of underground ore stockpiles."
Indeed, the company's growth has been well-noted. In July, Gold Resource announced it had reported record profits of $2.0 million, despite flooding at its underground La Arista deposit on account of a freak storm in April.
It generated $11.3 million in revenues from sales of metals concentrate during the quarter, and made a gross profit of $8.8 million directly from El Aguila. The project produced 7,479 ounces of gold equivalent at a cash cost of just $87 per ounce in the three month period.
Standardized drilling is currently being carried out at the La Arista vein system, as is exploration for the development of the high grade deposit.
Gold Resource, whose stock on the AMEX closed on Friday at $22.00 per share, said it has yet to determine the completion date for a mineral resource estimate at La Arista, but is targeting release of the report by year-end.