Produktion noch dieses Jahr bei GOLD RESOURCE! (Seite 108)

[multix06]

Na endlich mal was konkreteres:

DENVER, CO--(Marketwire - 06/10/10) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) ships additional concentrates for sale from its El Aguila Project as it ramps-up to Commercial Production. Gold Resource Corporation's El Aguila Project is located in Oaxaca, Mexico.

Gold Resource Corporation sold its first concentrates (52 tonnes) April 14, 2010, its second shipment (52 tonnes) May 12 and (102 tonnes) June 7 as it ramps-up towards Commercial Production levels.

William W. Reid, president of Gold Resource Corporation, said, "We are approaching an acceptable balance between throughput, recovery and concentrate grades. If optimization continues this way, of which there is no guarantee, we see the possibility of declaring Commercial Production July 1st."

Until Commercial Production is declared, all concentrate sales are not considered revenue but are used to offset capital costs.

[finance12]

Da vorhin leider die Liste der Bohrungen etwas durcheinander geraten ist, kann diese bereits in der Homepage unter Latest News bzw. unter nachstehenden link aufgerufen werden.

http://www.goldresourcecorp.com/releases/GRC-2010-06-02-1.pd…

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[finance12]

Antwort auf Beitrag Nr.: 39.587.705 von KaOzz am 26.05.10 19:14:20

Da hier ohnehin nicht mehr viel geschrieben wird, erlaube ich mir, wieder eine größere Meldung einzubringen.
Nicht mehr lange, und der Kurs in FF ist zweistellig.

Gold Resource Corporation Announces Gold Discovery Intercepting 9.9g/t Gold and 598g/t Silver Over 0.73 Meters in New Area of El Aguila Project
Gold Resource Corporation Announces Gold Discovery Intercepting 9.9g/t Gold and 598g/t Silver Over 0.73 Meters in New Area of El Aguila ProjectDENVER, CO, Jun. 2, 2010 (Marketwire) --

DENVER, CO -- (Marketwire) -- 06/02/10 -- Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce a new high-grade gold and silver discovery with intercepts including 9.9 g/t (0.32 oz/t) gold and 598 g/t (19.23 oz/t) silver over 0.73 meters within GRC's El Aguila Project. GRC's El Aguila Project is located in Oaxaca, Mexico.

Gold Resource Corporation accelerated its drill program in February of this year to test new target areas on its El Aguila Project. This new discovery of significant mineralization is encouraging as it may represent a new vein system over 150 meters NW of the Arista deposit (see map). This mineralization is located along the main San Jose structural corridor between the Arista vein system on the SE and the El Aguila open pit mine, 2 kilometers along trend to the NW.

The regional San Jose structural corridor runs North 70 West and is host to the Company's current three deposits; the Aguila open pit deposit, El Aire vein deposit and the Arista underground vein deposit. This same corridor has returned high-grade rock chip surface samples for the 8 kilometers that it has been sampled. The highest 115 rock chip surface samples taken over these 8 kilometers of the San Jose structural corridor ran "ore grade" at 0.38 ounce/tonne gold equivalent (Au and Ag). Gold Resource Corporation has 100% interest along a total of 16 continuous kilometers of this structural corridor spanning three historic mining districts (San Jose de Gracia, Las Margaritas and Alta Gracia mining districts). This new discovery confirms high-grade mineralization trending North 70 West, in addition to the Mirador vein and the Nariz vein, along this important structural corridor.

Mr. Reid stated, "This new discovery suggests that potential exists for multiple discoveries of mineralized veins along the two kilometers between the high-grade open pit deposit and the high-grade Arista vein deposits. Previous indications of a possible feeder vein in the Aguila open pit have returned intercepts from early drilling of 55 grams gold and 701 grams silver over 4 meters and recent sampling for grade control in the mining of this open pit returned our highest sample yet of 904 grams gold per tonne and 9720 grams silver per tonne over 2.5 meters. We believe these high-grade values in the open pit are part of a possible feeder vein, that is also trending North 70 West, and is part of this important structural corridor which includes our high-grade La Arista vein system and now our new discovery."

"We believe this new area's intercepts are higher up in the system, similar to higher elevations of the Arista deposit, and expect the veins to widen at depth. The Arista vein deposits mineralization averages 3.64 meters in width and extends over 500 vertical meters of continuous mineralization. The most important aspect is that we have significant high-grade mineralization in a new area along this important structural corridor. The location of our underground development is well situated to take advantage of this new mineralized system. Additional drilling is planned to further extend this new mineralization both laterally and at depth," continued Mr. Reid.

Recent drill highlights include:

Hole # 109011

0.73 meters of 9.9 g/t gold, 598 g/t silver, 1.56% copper, 2.13%lead, 2.29% zinc, (or a gold equivalent* value of 22.27 g/t (0.72 oz/tonne))
Hole # 110003

0.64 meters of 14.2 g/t gold, 80 g/t silver, 0.67% copper, 5.59%lead, 13.95% zinc, (or a gold equivalent* value of 25.01 g/t (0.80 oz/tonne))
Recent drill hole results include:


------ ----- ------ ------ ----- ----- ---- ---- ----- ----- --------- Hole Angle From Length Au Ag Cu Pb Zn AuEq* AuEq* # (deg) Meters Meters g/t g/t % % % g/t oz/tonne------ ----- ------ ------ ----- ----- ---- ---- ----- ----- ---------109011 -45 174.43 0.73 9.87 598.0 1.56 2.13 2.29 22.27 0.72------ ----- ------ ------ ----- ----- ---- ---- ----- ----- --------------- ----- ------ ------ ----- ----- ---- ---- ----- ----- ---------109012 -60 471.20 0.55 0.07 91.4 0.82 3.09 8.47 7.53 0.24------ ----- ------ ------ ----- ----- ---- ---- ----- ----- --------------- ----- ------ ------ ----- ----- ---- ---- ----- ----- ---------110003 -57 226.94 0.64 14.20 80.4 0.67 5.95 13.95 25.01 0.80------ ----- ------ ------ ----- ----- ---- ---- ----- ----- --------------- ----- ------ ------ ----- ----- ---- ---- ----- ----- ---------110003 -67 228.80 0.30 9.05 57.0 0.68 9.59 13.45 20.93 0.67------ ----- ------ ------ ----- ----- ---- ---- ----- ----- --------------- ----- ------ ------ ----- ----- ---- ---- ----- ----- ---------110005 -68 276.71 0.73 0.49 136.0 0.13 5.57 18.05 13.04 0.42------ ----- ------ ------ ----- ----- ---- ---- ----- ----- -------------------------------------------------------------------------------Assays by ALS Chemex, Vancouver, BC Canada Gold Equivalent (AuEq*)calculated at:Au $850/oz, Ag $12.00/oz, Cu $1.60/lb, Pb $0.55/lb, Zn$0.55/lb------------------------------------------------------ ----- ---------

About GRC:
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 49,380,404 shares outstanding and no warrants. 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 commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. 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

Gruß f12

[KaOzz]

Antwort auf Beitrag Nr.: 39.511.654 von finance12 am 12.05.10 22:37:42

Der Kurs ist wie ein Fels in der Brandung, in Bezug auf den Sell-off der restlichen Märkte. Unterstützung bei 10 USD sollte wohl den meisten schon ziemlich ins Auge gestochen sein.


Hochschild Mining Increases Holding in Gold Resource Corporation

11:58 AM ET, May 26, 2010

DENVER, CO, May 26, 2010 (MARKETWIRE via COMTEX) -- Gold Resource Corporation (GRC) (US:GORO) (FRANKFURT: GIH) is pleased to announce that Hochschild Mining plc (Hochschild) has increased its holding in GRC from 28.7% to 29.6% through a private placement purchasing 631,579 restricted shares of GRC's common stock with no warrants. Gold Resource Corporation will use the proceeds of the private placement for working capital and continued construction of the phase two tailings impoundment as the Company closes in on commercial production at its El Aguila Project in Oaxaca, Mexico. Hochschild is a leading mid-tier precious metals producer and expert underground miner, based in Lima, Peru and listed on the London Stock Exchange. Hochschild has mining operations and projects in five countries in the Americas including Mexico.

Gold Resource Corporation sold its initial gold and silver concentrates on April 14, 2010 and subsequent concentrate sales have been made from low-grade ore processed during the Aguila mill startup and commissioning. GRC's management is pleased with the mill's performance and has switched to processing its targeted average grade ore as the Company closes in on declaring commercial production.

The private placement consisted of 631,579 restricted shares of GRC's common stock at $9.50 per share with no warrants. Hochschild has an exclusive first right of refusal of funding, at a discount, until GRC produces 4000 ounces of gold within a 45 day period. Private placement proceeds of $6,000,000 will be used at the Aguila Project for working capital and continued construction of the phase two tailings impoundment.

Ignacio Bustamante, Chief Executive Officer of Hochschild Mining plc, commented, "We are extremely impressed with the quality of GRC's project portfolio and the speed at which the company is progressing towards commercial production at its El Aguila operation, which is expected in the first half of this year."

William W. Reid, President of Gold Resource Corporation, stated, "We are pleased Hochschild is supporting our need for working capital until commercial production is reached. We believe we will achieve commercial production in the near term."

About GRC: 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 49,380,404 shares outstanding and no warrants. 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.

About Hochschild Mining plc: Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

[finance12]

Hallo! Super Nachrichten von unserer Goldgrube
und unserer Silbermine (über 4kg Silber je Tonne Gestein

[GRC] NEWS
MAY 12, 2010
OTCBB: GORO
FRANKFURT: GIH

GOLD RESOURCE CORPORATION SHIPPING ADDITIONAL CONCENTRATES CLOSING IN ON COMMERCIAL PRODUCTION

DENVER - May 12, 2010 - Gold Resource Corporation (GRC) (OTCBB: GORO, FRANKFURT: GIH) is pleased to provide an update on its El Aguila Project including shipping additional concentrates for sale from its El Aguila Project as it ramps-up nearing Commercial Production. Gold Resource Corporation's El Aguila Project is located in Oaxaca, Mexico.

William W. Reid, President of Gold Resource Corporation stated, "We are very pleased with the progress of mill commissioning and with the operating skills achieved by our people in a relatively short time. During initial mill commissioning and training you do not process good ore until mill optimization is satisfactory. We began running with a grade of material approximately 2.5 grams per tonne gold, which is below our cut-off grade, during the mechanical start and stop period of the mill commissioning. Once continuous operation was achieved we switched to our cutoff grade of between 3.5-4.0 grams per tonne gold with the focus turning to operator training. We are impressed with performance so far in that the mill is achieving a +200 to 1 concentration ratio with metallurgical recoveries consistently around the mid 70% range. We are now increasing the grade of ore to the mill up to or above our targeted average grade of approximately 7.5 grams per tonne gold. Once operati
ons consistently achieve the plus 80% recovery range we will then up the tonnage throughput to 80% or more of the designed capacity (for this open pit ore the designed capacity is ~800 tonnes per day) at which point we plan to declare Commercial Production. Overall, mill commissioning, training, mill performance and concentrate sales are closing in on commercial production levels."

Gold Resource Corporation continues to sell concentrates as it ramps-up to Commercial Production. Until Commercial Production is declared, all concentrate sales are not considered revenue but are used to offset capital costs.

Mr. Reid continued, "Mining the El Aguila open pit is approximately 70% complete with mined ore residing in stockpiles ready to be processed. The final 30% open pit mining now underway also happens to be the highest grade part of the ore body. We have been impressed with some very high grade values, for an open pit, as indicated by our blast hole drilling. Grades of 20 to 40 grams per tonne gold (0.6 to 1.2 ounces per tonne gold) over several meters are not uncommon with the occasional +100 grams per tonne gold (3.2 ounces gold per tonne) assays. This not only bodes well for the resulting grade to be processed but may also be indicative of a feeder vein for this mineralization which has yet to be tested."

Development of the underground Arista mine is progressing and the surface facility is almost complete. The main haulage decline (-10% angle) has been driven 200 meters and the auxiliary decline (-14% angle), primarily for ventilation, secondary access and safety, has been driven 150 meters. The Company looks forward to the point of the first crosscut to be driven from the main decline that will intersect the La Arista high-grade polymetallic vein system.

Mr. Reid stated, "Exploration continues to underscore the size and robust nature of the El Aguila Project geologic system. We continue our practice of bringing in world recognized experts in these types of geologic systems and without fail they are all impressed. Each has commented on the world class grades we possess and the tremendous potential that is being recognized. Two drills continue to test new target areas at the El Aguila Project as well as a third drill is coming to begin exploration at our Las Margaritas property."

Geologic field work at Las Margaritas has generated several high grade drill targets to test including up to +4000 grams per tonne silver and up to +7 grams per tonne gold rock outcrop samples. Gold Resource Corporation will be the first to drill this historic high grade silver district. Las Margaritas was mined on a small scale most of which was pre-Mexican revolution era before the aid of exploration drill rigs and heavy equipment. GRC has 100% interest in this district and Las Margaritas will be the third of the Company's five high-grade properties to be drilled.

Follow up drainage sampling is planned for the El Rey Project where the Company previously discovered a high grade gold vein system. El Rey's current exploration is focused on expanding the known mineralized zones. GRC's previous drill programs intersected multiple meter intercepts of over 1 ounce per tonne gold, with the highest intercept being 1 meter of 132 grams per tonne gold. This sampling program is to assist in the development of the next drill program at El Rey. Gold Resource Corporation has 100% interest in El Rey.

About GRC:
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 48,700,284 shares outstanding and no warrants. 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 stateme
nts. 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 commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. 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
Contact: Jason Reid - VP / Corporate Development 303-320-7708

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[i5001]

Antwort auf Beitrag Nr.: 39.496.239 von rotie1 am 10.05.10 23:24:02

Ja, frag ich mich auch. Bei GORO hat wohl der Hinweis auf eine mögliche Kapitalerhöhung für Unsicherheit gesorgt. Ich mache mir deshalb keine Sorgen, denn so schlimm kann die Verwässerung nicht werden bei der MCAP. Außerdem ist es nicht sicher, dass eine Kapitalerhöhung kommt. Ich gehe nach wie vor davon aus, dass GORO auf Sicht von 2-3 Jahren ein ganz hervorragendes Investment wird, selbst bis Jahresende sollten wir deutlich im Plus sein.

[rotie1]

Antwort auf Beitrag Nr.: 39.490.018 von i5001 am 10.05.10 10:25:08

Wenn man bedenkt, das die Börse ein halbes Jahr vorraus läuft, frage ich mich, was gerade eingepreist wird!!??

[i5001]

Antwort auf Beitrag Nr.: 39.488.116 von milak am 09.05.10 20:08:31

Hallo milak,

bisher läuft nur eine Vorproduktion. Aber in spätestens 2 Monaten werden sie richtig produzieren. Alles im grünen Bereich also.

[milak]

Was bedeutet das für uns aktionäre, dachte die produzieren schon,

[i5001]

Na das klingt doch gut, Produktion noch im Q2:

7-May-2010

Quarterly Report


ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operation
This discussion updates our business plan for the balance of 2010. It also analyzes our financial condition at March 31, 2010 and compares it to our financial condition at December 31, 2009. Finally, this discussion summarizes the results of our operations for the three month period ended March 31, 2010 and compares those results to the three month period ended March 31, 2009. This discussion and analysis should be read in conjunction with our audited financial statements for the years ended December 31, 2009 and 2008, including footnotes, and the discussion and analysis included in our Form 10-K for the year ended December 31, 2009.

Plan of Operation

We expect to commence commercial production at our Mexico mill facility during 2010. Prior to 2010, none of our properties were in production, and consequently, we have never produced revenue or cash flow from the sale of minerals and have relied on equity financing to fund our operations to date.

We are continuing exploration at our El Aguila Project in 2010. Presently, work continues on the decline ramp on what we anticipate will be an underground mine at the La Arista vein.

We continue to refine our initial and ongoing capital requirements. As an exploration stage company, there is significant uncertainty in our estimates regarding both future costs and future revenue. We may require additional capital resources to complete our plans. As of March 31, 2010, $9,651,097 is available in restricted cash to fund ongoing exploration and construction of the decline ramp.

Anticipated Production at El Aguila. While we intend to continue exploration at the El Aguila Project and proximate properties for the foreseeable future, we are moving forward with our plans for mineral production and construction of an underground mine. None of the mineralized material on our properties has been classified as proven or probable reserves in accordance with SEC criteria. The assumptions used by us in our decision to undertake construction of the mill and mine may prove to be inaccurate. Thus, we may never be able to recover sufficient mineralized material to become profitable.

In December 2009, we began commissioning the El Aguila mill. In February 2010, we produced our first concentrate and shipped the first set of concentrates in April 2010 to Consorcio Minero de Mexico Cormin Mex, S.A. de C.V. (a Trafigura Group Company), which accepted delivery at a Mexican port for ultimate shipment to a smelter. As of May 7, 2010, we are in the process of ramping up and optimizing mill production, which we expect to continue until the full production rate of approximately 850 tonnes per day of ore throughput is reached, using ore from the open pit mine. As the ramp-up proceeds, we are focused on improving the training of the plant workforce, and improving plant efficiencies. In addition, we continue to work on the agitated leach circuit and construction of the underground mine.

Our immediate goal is to reach commercial production in the second quarter of 2010. Commercial production for our purposes is achieved when the mill throughput and recoveries are 80% of design. We have not yet achieved what we consider commercial production. Prior to realizing commercial production, any sales of concentrates are applied against costs and are not considered revenue. If commercial production is achieved from the mill, any silver contained in the mineralization will be produced as a by-product, revenue from which will help offset the costs of producing the gold. As the proceeds from our recent equity financings may not be sufficient to fully fund our capital resource requirements for start-up and commercial production activities, we may seek additional funding.

Construction at the La Arista Vein. We have begun development of the underground La Arista vein, which we hope to place in production during our second year of mineral production. A third party contractor has been hired and is presently driving a decline haulage ramp, a second ventilation and emergency ramp and additional developments. We are also constructing a surface facility to service this underground mine. Since we believe the La Arista mineralization area also contains base metals such as copper, lead, and zinc, we intend to produce those metals as by-products, any revenue from which would help offset the costs of producing gold and silver. We expect that the ore from both the near-surface deposit and the anticipated underground mine will be processed at the El Aguila mill.

A portion of the proceeds of the December 2009 private placement, in the amount of $8,000,000, have been reserved for construction of this underground mine and facilities. However, since we are still in the process of planning the design and construction of those facilities, we have not yet determined whether that amount will be sufficient to complete the necessary work to begin mining of the underground mineralization. If we are successful in completing the underground facilities and commencing mining at this portion of our property, we expect that the ore will be processed at our nearby mill.

Accounting for Exploration Stage Activities

We are considered an exploration stage company since we have not demonstrated the existence of proven or probable reserves. In accordance with accounting principles generally accepted in the United States, all expenditures for exploration and evaluation of our properties have been expensed as incurred. Furthermore, unless mineralized material is classified as proven or probable reserves, substantially all expenditures for mine and mill construction have been or will be expensed as incurred. Certain expenditures, such as for rolling stock or other general purpose equipment, may be capitalized, subject to our evaluation of the possible impairment of the asset. Since substantially all of our expenditures to date, including construction of the mill, have been expensed and we expect to expense additional expenditures during 2010, most of our investment in mining properties and equipment does not appear as an asset on our balance sheet. Due to the absence of any proven or probable reserves, we expect to remain as an exploration stage company for the foreseeable future, even if we reach commercial production.

Our accounting treatment for exploration stage properties, regarding the classification of construction expenditures as an operating expense rather than as a capital expenditure, has caused us to report large losses during the last two years. Although the majority of expenditures for the El Aguila Project were completed during the last two years, we expect underground mine construction to continue in future years. In comparison to other mining companies that capitalize development expenditures because they have exited the exploration stage, we will report larger losses or lesser profits during periods of construction.

In accordance with this policy, from inception to March 31, 2010, we expensed approximately $40,095,000 in design, engineering, and construction costs, all of which apply to the El Aguila Project.

Liquidity and Capital Resources

As of March 31, 2010, we had working capital of $18,020,970, consisting of current assets of $18,962,025 and current liabilities of $941,055. This represents a decrease of $1,955,996 from the working capital balance of $19,976,966 as of December 31, 2009. Consistent with our plans, our working capital balance fluctuates as we consume resources to fund our exploration and construction activities and other operating expenses, and as we replenish our capital through the sale of common stock.

We have historically relied on equity financings to fund our operations. From inception through March 31, 2010, we received $100,995,000 in cash, services, stock options, and other consideration through issuance of our common stock. As of March 31, 2010, we did not have any outstanding debt. We believe that we will continue to fund our future working capital requirements through the sale of equity, and eventually through cash flow from operations, and we have not made arrangements to borrow funds for working capital requirements. However, we may consider debt financing if market conditions allow.

Effective March 8, 2010, we completed a financing transaction with Hochschild Mining Holdings Limited ("Hochschild") whereby we sold 600,000 shares of restricted common stock at $8.62 per share for gross proceeds of $5,172,000.
During the three months ended March 31, 2010, we spent $1,215,873 on the exploration and evaluation of our properties, predominantly at our El Aguila Project. This compares to $627,921 spent during the three months ended March 31, 2009. We continued our exploration program to further delineate the area of mineralized material, even though our emphasis has shifted to production activities.

During the three months ended March 31, 2010, we also spent $4,599,048 on engineering and construction activities. This compares to $5,843,952 spent during the three months ended March 31, 2009, and reflects our shifting emphasis from construction of the mill and infrastructure into the production phase.

Our most significant expenditures for the remainder of 2010 are expected to be costs associated with the second phase of our tailings facility, achieving ramp up and optimization to commercial production at our mill facility, the continued construction of the underground mine and further exploration of our properties. We also continue to incur operating expenses approximating $200,000 per month for salaries and other overhead expenses at our Denver and Oaxaca locations. We expect to continue depleting our working capital until such time, if ever, we successfully reach commercial production and generate cash flow from the production and sale of gold and other metals.

Although we expect to commence gold production during 2010, it is uncertain if we will be successful. Furthermore, the amount of revenue generated during the start-up phase of a mining operation is difficult to predict and tends to be highly variable. Our costs to enter the production phase may be greater than we anticipate. We may require additional funding to complete our existing plans and we would be dependent upon additional financing to expand our exploration efforts. We may seek additional funding during the next twelve months.

Net cash used in operating activities was $7,928,211 during the three months ended March 31, 2010, compared to $7,883,514 during 2009, an increase of $44,697. Our use of operating cash is currently shifting from construction activities to production activities consistent with our plan to commence production during 2010.

Net cash used in investing activities for the three months ended March 31, 2010 was $329,914, compared to $60,750 for the three months ended March 31, 2009. Although most of our exploration stage expenditures are recorded as an expense rather than an investment, we capitalize the acquisition cost of land and mineral rights and certain equipment that has alternative future uses or significant salvage value, including rolling stock, furniture, and electronics. During the three months ended March 31 2010, we invested in additional vehicles and computer equipment.

Net cash provided by financing activities for the three months ended March 31, 2010 was $5,172,000, consisting of proceeds from the sale of shares to Hochschild. This represents a decrease of $7,818,000 for the three months ended March 31, 2009 where financing activities provided cash of $12,990,000 from the sale of shares to Hochschild.

The balance of cash and equivalents decreased to $3,689,631 as of March 31, 2010 from $6,752,325 as of December 31, 2009, a net decrease in cash of $3,062,694. The decrease is consistent with our current activities at El Aguila. We expect to continue our plan of raising funds from equity sales if necessary and to expend our cash for exploration stage and production start-up activities until such time, if ever, we successfully commence production and generate cash flow from the production and sale of gold and other metals.

Results of Operations - Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009

For the three months ended March 31, 2010, we reported a net loss of $7,265,492, or $0.15 per share, compared to a net loss of $7,141,309, or $0.19 per share for the three months ended March 31, 2009. We expect to incur losses until such time, if ever, we begin generating revenue from operations. The decrease in the net loss per share in the three months ended March 31, 2010 resulted from a greater number of shares outstanding during the period. In neither period did we report any revenue from the sale of gold or other minerals. Our only revenue since inception has consisted of interest income.

Total costs and expenses during the three months ended March 31, 2010 were $7,443,479 compared to $7,145,476 during the comparable period of 2009, an increase of $298,003 or 4%. Although total costs and expenses for the two periods were similar, there has been a shift in the nature of our cost structure. We are currently shifting from construction activities to production activities consistent with our plan to commence production during 2010.

During the three months ended March 31, 2010, we commenced operations at the El Aguila mill and incurred costs for training, testing, system optimization, salaries, power and light, among others. We are planning to complete the start-up phase and enter into commercial production during 2010.

The property exploration and evaluation component increased $587,952 or 94%, from $627,921 for the three months ended March 31, 2009 to $1,215,873 for the three months ended March 31, 2010. We recently contracted for a second drilling rig to accelerate the exploration of our properties.

The engineering and construction cost component during the three months ended March 31, 2010 was $4,599,048, compared to $5,843,952 during the comparable period in 2009. We have substantially completed engineering and construction of the open pit mine and mill and are shifting our construction emphasis to the underground mine.

General and administrative expenses increased $182,227, or 28%, to $822,179 for the three months ended March 31, 2010 as compared to $639,952 for the comparable period last year.

The cash components of general and administrative expense, including salaries and benefits, professional fees, investor relations, and travel, increased to $739,461 during the three months ended March 31, 2010 from $580,275 during the comparable period in 2009, an increase of $159,186 or 28%. There was a significant change in the insurance component of our cost structure as we increased coverage for Mexico operations, in addition to generally increased activity levels as we prepare the El Aguila Project for production. We anticipate these costs may further increase if we commence commercial production.

The component of general and administrative expense representing stock option compensation expense (a "non-cash" expense) was $82,718 for the three months ended March 31, 2010, compared to $59,677 for the comparable period in 2009. We use an option pricing model to estimate the value of stock options granted to officers, directors, employees and consultants. We record the estimated fair value of options granted as an expense on a pro-rata basis over the vesting period of the options.

Interest income for the three months ended March 31, 2010 increased to $177,987 compared to $4,167 for the comparable period of 2009, an increase of $173,820, or 98%, representing increased deposits in short term interest bearing accounts.

Our mining operations are located in Mexico and we primarily transact business in Mexican pesos. Our reporting currency is the US dollar. Changes in the rate of currency exchange between the Mexican peso and the US dollar create translation gains and losses, which are reported as a component of other comprehensive income. For the three months ended March 31, 2010 and 2009, we recorded currency translation gains of $285,988 and $96,143, respectively.

Critical Accounting Policies

There have been no material changes in our critical accounting policies since December 31, 2009.