 COLORADO SPRINGS, CO, Aug. 04, 2020 GLOBE NEWSWIRE -- via NEWMEDIAWIRE -- Gold Resource Corporation NYSE American: GORO the Company or GRC reported consolidated production results for the second quarter ended June 30, 2020 of 7,649 ounces of gold and 191,232 ounces of silver. In addition to precious metals, the Company produced base metals resulting in consolidated net revenue of 21.1 million for the quarter. At the beginning of the second quarter, the Companys Oaxaca Mining Unit was placed on care and maintenance as the Mexican government declared a country-wide health emergency and mandatory non-essential business suspension due to the novel coronavirus COVID-19 global pandemic. The Company was granted approval to restart operations on May 27, 2020 after nearly eight weeks of being shut down during the second quarter. Operations were reinstated, along with a stringent employee illness protocol and screening process, and have gradually ramped up during the months of June and July. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned 114 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.Q2 2020 HIGHLIGHTS 21.1 million net sales; 13.3 million cash balance at June 30, 2020, an increase from the December 31, 2019 balance of 11.1 million; Working capital of 33.6 million, an increase of 48 from December 31, 2019; Maintained a strong balance sheet during Mexico operations suspension; Consolidated production of 7,649 gold ounces and 191,232 silver ounces; Successful restart of Mexican operations following nearly two-month suspension; Acquisition of the Golden Mile project in Nevada, an advanced exploration property in the highly prospective Walker Lane Trend; Isabella Pearl gold production increase of 41 over Q1 2020; 4.7 million gold and silver bullion inventory; and 0.01 per share dividend distribution for quarter.Overview of Q2 2020 ResultsSecond quarter production from the Companys Nevada Mining Unit NMU totaled 5,208 ounces of gold, an increase of 41 over Q1 2020. The Isabella Pearl project continues to be in its ramp up phase for the remainder of 2020 targeting 40,000 gold ounces in 2021. Production from the Companys Oaxaca Mining Unit OMU was negatively impacted during the quarter by a nearly eight week government mandated shutdown in Mexico due to the COVID-19 global pandemic. OMU second quarter production totaled 2,441 ounces of gold, 185,330 ounces of silver, 246 tonnes ofcopper, 1,140 tonnes of lead and 3,004 tonnes of zinc. The Company withdrew its 2020 annual production outlook during the quarter due to the pandemic. During the three months ended June 30, 2020, the Company sold 5,054 gold ounces from its Isabella Pearl mine at a total cash cost of 1,402 per ounce after by-product credits at an average realized price of 1,708 per gold ounce. With limited production during the second quarter, the Company sold 4,333 precious metal gold equivalent ounces at a total cash cost of 1,379 per ounce after by-product credits at its OMU. OMU average realized metal prices during the quarter included 1,784 per ounce gold and 16.83 per ounce silver. The Company recorded a net loss of 1.8 million, or 0.03 per share mainly due to the mandatory shutdown of operations in Mexico resulting in lower revenues. The Company paid 0.7 million to its shareholders in dividends, or 0.01 per share during the quarter. Cash and cash equivalents at quarter end totaled 13.3 million. Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Some provisional sales may remain unsettled from one period into the next. Realized prices will therefore vary from average spot metal market prices upon final settlement.COVID-19With both the NMU and OMU projects in current operation, the Company strives to mitigate the spread of COVID-19 and protect the health and safety of our employees, contractors, and communities in which we operate. The Company has taken precautionary measures including specialized training, social distancing, a work-from-home mandate where possible, and close monitoring of national and regional COVID-19 impacts and governmental guidelines. With the ever changing and fluid nature of the pandemic impact, Company management continues to analyze and prepare for various scenarios whereby a forced or prolonged suspension of one or both mining units may be sustained. While it is never positive to see a mandated business suspension at any point in time, I am optimistic the shutdown was positive for Mexico in its fight to combat the COVID-19 virus, stated Mr. Jason Reid, President and CEO of Gold Resource Corporation. The Company was granted approval to restart operations on May 27, 2020 after nearly eight weeks of being shut down during the second quarter and have gradually ramped up operations during the months of June and July. Company management both in Mexico and Nevada have implemented strong protocols and procedures to help mitigate any potential impact from the coronavirus. These continue to be challenging times for all business across the globe, including mining, and we will continue to focus on mitigating the spread of the virus within our Company, our contractors and the communities in which we operate. Mr. Reid continued, We are pleased with the 41 increase in gold production over the previous quarter at Isabella Pearl. We were also pleased to have reached the first bench levels in the Pearl zone during the quarter. As we continue through the ramp up phase and expose more Pearl benches, we expect an increase in mineralized tonnes at higher grade coupled with less waste removal for this phase one of the Pearl mine plan sequence. Eighty percent of the of the ore in the Isabella Pearl deposit is located in the Pearl zone and it is great to have reached the top as we mine down. Both precious metal production and total cash costs are expected to improve the second half of 2020 as higher grade ore is accessed at the Pearl deposit.Subsequent to quarter-end, we announced reaching Company milestones of a decade of production, over 1 billion generated in revenue and over 114 million in dividends distributed to shareholders. We are very proud to have reached these milestones, commented Mr. Reid.The following Production Statistics tables summarize certain information about our Oaxaca and Nevada Mining Unit operations for the three and six months ended June 30, 2020 and 2019:Oaxaca Mining Unit Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Arista Mine Milled Tonnes Milled 78,741 155,847 236,776 305,908 Grade Average Gold Grade gt 1.73 1.87 1.41 1.70 Average Silver Grade gt 71 92 78 83 Average Copper Grade 0.39 0.40 0.39 0.38 Average Lead Grade 1.92 1.96 1.96 1.97 Average Zinc Grade 4.92 4.77 4.75 4.72 Aguila Open Pit Mine Milled Tonnes Milled 3,579 8,872 17,827 20,336 Grade Average Gold Grade gt 1.46 1.39 1.29 1.80 Average Silver Grade gt 50 43 41 43 Mirador Mine Milled Tonnes Milled 5,246 6,737 7,450 10,850 Grade Average Gold Grade gt 0.79 1.10 0.91 1.16 Average Silver Grade gt 126 201 130 211 Combined Tonnes milled 87,566 171,456 262,053 337,094 Tonnes Milled per Day 1 1,943 1,967 1,976 1,947 Metal production before payable metal deductions 2 Gold ozs. 2,441 7,881 8,891 14,419 Silver ozs. 185,330 466,512 587,872 831,165 Copper tonnes 246 482 734 915 Lead tonnes 1,140 2,304 3,654 4,457 Zinc tonnes 3,004 6,054 8,848 11,892 1. Based on actual days the mill operated during the period. 2. The difference between what we report as ouncestonnes produced and payable ouncestonnes sold is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.Nevada Mining Unit Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Ore mined Ore tonnes 1 143,818 273,223 302,572 688,277 Gold grade gt 1.54 0.61 1.33 0.69 Low-grade stockpile tonnes Ore tonnes - 244,650 18,490 388,726 Gold grade gt - 0.52 0.57 0.52 Waste tonnes 2 1,026,922 1,101,858 2,817,970 1,698,448 Metal production before payable metal deductions 3 Gold ozs. 5,208 1,678 8,900 1,678 Silver ozs. 5,902 972 10,985 972 1. 2019 amounts include run-of-mine ore and initial over liner of the heap leach pad. 2. 2020 amounts are primarily stripping tonnes for the Pearl deposit. 3. The difference between what we report as ounces produced and payable ounces sold is attributable to the difference between the quantities of metals contained in the doré we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. 