Emerging low cost gold producer Gold Resource Corporation (AMEX:GORO) confirmed this morning that it would pay another dividend to loyal shareholders on January 28th, 2011. The announcement came as no surprise to close followers of the company, who has announced a special dividend every month for the past six months, paying out 3 cents per share each time. The company has consolidated claims over three historic mining districts called Alta Gracia, Las Margaritas and El Aguila, covering 16 kilometers of strike for a total of 337 km², in the southern state of Oaxaca, Mexico. This strike line contains a large epithermal system where Gold Resource Corporation has developed a series of high grade resources and exploration targets contained within a massive 4 kilometer long “plug” encircled by 3 volcanic caldera. These resources include the El Aguila open pit, which contains an estimated 330,000 tonnes at 7.5 g/t gold and 63 g/t silver, and currently provides the feedstock for the first year of mining operations at an annualized target rate of 70,000 ounces of gold, produced in the form of concentrates via a floatation circuit. Development of the pit floor shows indications of a possible high grade feeder zone plunging below the floor, where grade control in the pit floor over this discovery gave 904 g/t gold and 9720 g/t silver, and 2.5 meters, with 55 g/t gold and 701 g/t silver over 4 meters. The company is also developing the La Arista polymetallic underground vein system that is located 2 kilometers to the southeast of the El Aguila open pit. Two predominant veins called Baja and Arista have been drilled along a 500 meter strike line and down to a depth of 500 meters for a current mineralized material estimate of 2,962,000 tonnes at 23.20 g/t gold equivalent for an estimated 2,192,000 gold equivalent ounces. The composition of the mineralized estimate contains 6.50 g/t gold, 506 g/t silver, 0.60% copper, 2.24% lead and 6.75% zinc. Both systems are open along strike and at depth. GORO stresses that this is not an SEC approved estimate of resources, but is backed by substantial funding from Hochschild (LSE:HOC) to bring the resource into production. The company intends to pay back up to one third of its free cash flow in dividends, indicating that this may reach up to $1.11 per share in its third year of production

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