Gold Resource Corp announces March dividend, marks first time to participate in new gold/silver dividend program

Gold Resource Corp (AMEX:GORO) announced Tuesday its monthly dividend of 5 cents per common share for March.

The dividend is payable on April 23, to shareholders of record as of April 10.

The March dividend marks the first opportunity for shareholders to participate in the company’s gold and silver dividend program announced earlier this month.

Shareholders who opt-in to the program can take their dividend, after a cash to physical conversion, in gold and/or silver on the April 23 pay date, the company said.

The US-based gold producer, which started production from its El Aguila project in Oaxaca, Mexico in July 2010, has paid 20 straight monthly dividends since declaring commercial production, totaling more than $41 million returned to shareholders.

Under the new gold and silver dividend program, shareholders can establish an “individual bullion account”, whereby cash dividends are converted into Gold Resource Corp “Double Eagle” one ounce .999 fine gold and/or one ounce .999 fine silver rounds.

Gold Bullion International (GBI), a provider of institutional precious metals to individual investors and the wealth management industry, is facilitating the conversion of the company's cash dividend to physical bullion.

Shareholders must direct their individual bullion account for desired gold and silver allocation by midnight EST the day before the record date.  Once the cash to physical conversion takes place, distribution of the gold and silver occurs on the dividend pay date.

Earlier this month, Gold Resource Corp reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Mexico.

The gold company posted net income of $58.37 million, or $1.10 per share in the year to December 31, 2011, versus a loss of $23.07 million, or 46 cents per share in 2010.

El Aguila is located 120 kilometres southeast of the state 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.

Last March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.

Combined open pit and underground operations in 2011 yielded 66,159 ounces of gold equivalent production. This compares to the 10,493 gold equivalent ounces produced from the six months of open pit El Aguila operations in 2010.

As underground development continues, Gold Resource management said on a conference call early this month that it expects to mine more efficiently with greater tonnages and less dilution.

Cash costs in 2011 were $136 per ounce of gold equivalent, excluding royalty expense, 37 percent lower than $217 per ounce in the six month period in 2010.

This led to record annual revenue of more than $105 million in 2011 as the company realized much higher gold and silver prices for its combined operations of $1,596 per gold ounce, and $35 per silver ounce. Revenues in 2010 stood at $14.75 million.

The company's gross profit from the mine came in at $87.2 million, way up from $9.8 million the prior year.

For additional details on Gold Resource Corp’s gold and silver dividend program and specifics on how to open a self-directed “bullion” account, please visit the company’s website at www.goldresourcecorp.comor the program specific page at:www.grc.bullioninternational.com/.