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Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses Investing In Gold Resource Corporation To Contact the Firm

NEW YORK, Nov. 9, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Gold Resource Corporation ("Gold Resource" or the "Company") (NYSE AMEX: GORO).

(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO)

The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that:  (1) aggressive expansion of Gold Resource's underground mining operations during the first quarter of 2012 had created operational difficulties in the mine, which were lowering mine production; (2) Gold Resource was mining in lower grade zones of the deposit; (3) significant operational efficiency improvements would be needed before the Company could mine from higher grade stopes; (4) decreases in long-hole stoping were forcing the Company to process more diluted development ore and mine from areas of the deposit with lower metal grades; and (5) during the third quarter of 2012, a dispute had arisen between the Company and the buyer of its metal concentrates, with the buyer claiming net reductions to the Company's provisional third quarter 2012 invoices.

On July 19, 2012, Gold Resource announced preliminary production results for the second quarter ended June 30, 2012, stating that the Company's second quarter production was lower than expected and that the Company was dramatically reducing guidance for fiscal years 2012 and 2013.  In response to these revelations, shares of the Company's common stock fell from its July 19, 2012 closing price of $24.99 per share to $17.34 per share.

Then, on October 17, 2012, Gold Resource again surprised the market when it announced disappointing production results for the third quarter ended September 30, 2012.   

Request more information now by clicking here:  www.faruqilaw.com/GORO.  There is no cost or obligation to you.

Take Action
If you purchased Gold Resource stock or options between January 30, 2012 to October 17, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/GORO.  You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com.  Faruqi & Faruqi, LLP also encourages anyone with information regarding Gold Resource's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising.  The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com).  Prior results do not guarantee or predict a similar outcome with respect to any future matter.  We welcome the opportunity to discuss your particular case.  All communications will be treated in a confidential manner.

FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn:  Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330

SOURCE Faruqi & Faruqi, LLP

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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