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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
      filed
      with the Securities and Exchange Commission on December&#160;1 ,
      2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SEC
      File
      No. ____________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registration
      Statement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Under
      the
      Securities Act of 1933</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>GOLD
      RESOURCE CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman"><strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Colorado&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</strong><strong>84-1473173</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or
      other jurisdiction of&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
      Employer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
      or organization)&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
      No.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>222
      Milwaukee Street, Suite 301, Denver, Colorado 80206</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(303)
      320-7708</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of Principal Executive Offices and Zip Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GOLD
      RESOURCE CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NON-QUALIFIED
      STOCK OPTION AND STOCK GRANT PLAN</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
      title of the plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">____________</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>William
      W. Reid, President</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Gold
      Resource Corporation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>222
      Milwaukee Street, Denver, Colorado 80206</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(303)
      320-7708</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name,
      address and telephone number of agent for service)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">____________<br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>With
      a copy to:</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>David
      J. Babiarz, Esq.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jessica
      M. Browne, Esq.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dufford
      &amp; Brown, P.C.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1700
      Broadway, Suite 2100</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Denver,
      Colorado 80290-2101</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(303)
      861-8013</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Approximate
      date of commencement of proposed sale to public: This Registration Statement
      shall become effective immediately upon filing as provided in Rule 462 under
      the
      Securities Act of 1933.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">If
      any of
      the securities being registered on this form&#160;are to be offered on a delayed
      or continuous basis pursuant to Rule&#160;415 under the Securities Act of 1933,
      other than securities offered only in connection with dividend or interest
      reinvestment plans, check the following box. [X]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Calculation
      of Registration Fee</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title
                of each class of securities to be registered</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                maximum amount to be registered</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                maximum offering price per unit </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                of aggregate offering price</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                registration fee</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock, $0.001 par value</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,000,000</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1.625</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$9,750,000</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1043.25
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">_________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Calculated
      in accordance with Rule 457(c) and (h) of the regulations promulgated under
      the
      Securities Act of 1933.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>EXPLANATORY
      NOTE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">This
      registration statement is being filed to register 6,000,000 shares of common
      stock, $0.001 par value, of Gold Resource Corporation authorized under the
      Gold
      Resource Corporation Non-Qualified Stock Option and Stock Grant Plan (the
&#8220;Plan&#8221;) and includes a reoffer prospectus prepared in accordance with General
      Instruction C to Form S-8 and Part I of Form S-3, which may be used for the
      offer and sale of securities registered hereunder by certain officers and
      directors of Gold Resource Corporation who may be deemed to be &#8220;affiliates&#8221; of
      Gold Resource Corporation as that term is defined in Rule 405 under the
      Securities Act of 1933. The reoffer prospectus also includes restricted
      securities received prior to the filing of this registration statement under
      the
      Plan by a shareholder who is not an &#8220;affiliate.&#8221; The amount of shares to be
      offered or resold by means of the reoffer prospectus contained herein by each
      selling shareholder (and any other person with whom such selling shareholder
      is
      acting in concert for the purpose of selling such shares), may not exceed,
      during any three-month period, the amount specified in Rule 144(e) of the
      Securities Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>PART
      I</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
      REQUIRED IN THE SECTION 10(a) PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      documents containing the information specified in Part I, Items 1 and 2 of
      Form
      S-8, will be sent or given to any recipient of a stock option or stock award
      in
      accordance with Form S-8 and Rule 428(b)(1) of the Securities Act. Such
      documents are not required to be and are not filed with the Securities and
      Exchange Commission either as part of this Registration Statement or as
      prospectuses or prospectus supplements pursuant to Rule 424. These documents
      and
      the documents incorporated by reference in this Registration Statement pursuant
      to Item 3 of Part II of this Form S-8, taken together, constitute a prospectus
      that meets the requirements of Section 10(a) of the Securities Act. The reoffer
      prospectus follows this paragraph.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>R
      E O F F E R&#160;&#160;&#160;&#160;&#160;P R O S P E C T U
      S</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>GOLD
      RESOURCE CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2,240,000
      shares of Common Stock,</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>$0.001
      par value</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">This
      prospectus relates to 2,240,000 shares of common stock, $0.001 par value per
      share, which may be offered from time to time by the selling shareholders
      identified in this prospectus under the heading &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SELLING
      SHAREHOLDERS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.&#8221;
Gold
      Resource Corporation (hereinafter referred to as &#8220;Gold Resource,&#8221; &#8220;we,&#8221; &#8220;our&#8221; or
&#8220;us&#8221;) will not receive the proceeds from the sale of the shares. The shares may
      be offered by the selling shareholders from time to time: (i) in transactions
      in
      the over the counter market, on an automated inter-dealer system or national
      securities exchange on which shares of our common stock may be listed, in
      negotiated transactions, or a combination of such methods; and (ii) at market
      prices prevailing at the time of sale, or at prices related to such prevailing
      market prices, or at negotiated prices. The selling shareholders may effect
      these transactions by selling the shares to or through securities
      broker-dealers. Such broker-dealers may receive compensation in the form of
      discounts, concessions, or commissions from the selling shareholders and/or
      the
      purchasers of the shares for whom broker-dealers may act as agent or to whom
      they sell as principal, or both (which compensation as to a particular
      broker-dealer might be in excess of customary commissions). See &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SELLING
      SHAREHOLDERS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8221;
and
      &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>PLAN
      OF DISTRIBUTION</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8221;
in
      this
      prospectus. Selling shareholders may also sell such shares pursuant to Rule
      144
      under the Securities Act of 1933, as amended (&#8220;Securities Act&#8221;) if the
      requirements for the availability of such rule have been satisfied.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Of
      the
      total shares included in this prospectus, 2,000,000 are defined as &#8220;control
      securities&#8221; under the Securities Act. Of those 2,000,000 shares, 1,900,000
      shares will be issued to the selling shareholders upon exercise of options
      granted to them under our Non-Qualified Stock Option and Stock Grant Plan (the
      &#8220;Plan&#8221;) and 100,000 shares were issued to a director as a stock grant award. The
      remaining 240,000 shares included in this prospectus are &#8220;restricted securities&#8221;
as defined in the Securities Act and are held by a selling shareholder who
      exercised options under the Plan prior to the filing of the registration
      statement of which this prospectus forms a part. This prospectus has been
      prepared for the purposes of registering the shares under the Securities Act
      to
      allow for future sales to the public by selling shareholders on a delayed or
      continuous basis without restriction.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      have
      agreed to bear all expenses (other than underwriting discounts, selling
      commissions, and underwriter expense allowance, and fees and expenses of counsel
      and other advisers to the selling shareholders) in connection with the
      registration and sale of the shares being offered by the selling shareholders.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Effective
      September 14, 2006 our common stock began trading in the over the counter market
      and quoted on the Bulletin Board maintained by the National Association of
      Securities Dealers (the &#8220;OTCBB&#8221;) under the symbol &#8220;GORO.&#8221; On November
      30</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">,
      2006,
      the last reported sale price of our common stock was $</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.62
      </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">per
      share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>These
      securities are speculative and involve a high degree of risk. See Risk Factors
      beginning at page 7. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Since
      we do not currently meet the registrant requirements for use of Form S-3, the
      amount of common stock which may be resold by means of this prospectus by each
      of the selling shareholders, and any other person with whom he or she is acting
      in concert for the purpose of selling securities of our company must not exceed,
      in any three-month period, the amount specified in Rule 144(e) promulgated
      under
      the Securities Act.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved or disapproved of these securities or passed upon the adequacy or
      accuracy of the prospectus. Any representation to the contrary is a criminal
      offense. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      date
      of this prospectus is December 1, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="additional">ADDITIONAL
      AVAILABLE INFORMATION</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      registration statement (including any post-effective amendments) that contains
      this prospectus, including the exhibits to the registration statement, contains
      additional information about us and the securities the selling shareholders
      may
      offer under this prospectus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      public may read and copy any materials we file with the Securities and Exchange
      Commission (the &#8220;SEC&#8221;) at the SEC&#8217;s Public Reference Room at 100 F Street, N.E,
      Washington, DC 20549. The public may obtain more information on the operation
      of
      the Public Reference Room by calling 1-800-SEC-0330. The SEC maintains an
      Internet site that contains reports, proxy and information statements, and
      other
      information regarding issuers that file electronically with the SEC at
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>http://www.sec.gov</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="DOCUMENTSinc">DOCUMENTS
      INCORPORATED BY REFERENCE</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      will
      provide, without charge, to each person to whom a copy of this prospectus is
      delivered, including any beneficial owner of securities, upon the written or
      oral request of such person, a copy of any or all of the documents incorporated
      by reference herein (other than exhibits to such documents, unless such exhibits
      are specifically incorporated by reference into the information that the
      prospectus incorporates). Requests should be directed to: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Gold
      Resource Corporation</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">222
      Milwaukee Street, Suite 301</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Denver,
      Colorado 80206</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Telephone
      number: (303) 320-7708</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Attention:
      William W. Reid, President</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
      The following documents filed with the SEC (File Number 333-129321) are hereby
      incorporated by reference into this prospectus:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      prospectus filed pursuant to Rule 424(b)(3) dated May 15, 2006;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Quarterly Report on Form 10-QSB/A for the quarter ended March 31,
      2006;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Current Report on Form 8-K dated June 20, 2006; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Quarterly Report on Form 10-QSB for the quarter ended June 30, 2006;
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Current Report on Form 8-K dated September 19, 2006; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">6.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Quarterly Report on Form 10-QSB for the quarter ended September 30,
      2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
      All documents filed by us with the SEC pursuant to Sections 13(a), 13(c), 14,
      or
      15(d) of the Securities Exchange Act of 1934, as amended, subsequent to the
      date
      of this prospectus and prior to the termination of the offering registered
      hereby shall be deemed to be incorporated by reference into this prospectus
      and
      to be a part hereof from the date of the filing of such documents. Any statement
      contained in a document incorporated or deemed to be incorporated by reference
      herein shall be deemed to be modified or superseded for purposes of this
      prospectus to the extent that a statement contained herein or in any
      subsequently filed document which also is or is deemed to be incorporated by
      reference herein modifies or supersedes such statement. Such statement so
      modified or superseded shall not be deemed, except as so modified or superseded,
      to constitute a part of this prospectus.</font></div><br>
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      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="summar">SUMMARY</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>The
      following information summarizes information found in this prospectus and the
      documents incorporated by reference in this prospectus. It does not contain
      all
      of the information you should consider before investing in our common stock.
      You
      should read the entire prospectus carefully, including the sections entitled
      &#8220;</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>RISK
      FACTORS</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>&#8221;
and
      &#8220;</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>DOCUMENTS
      INCORPORATED BY REFERENCE</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>.&#8221;</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>About
      the Company</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      are an
      exploration stage company organized in Colorado on August 24, 1998 to search
      for
      gold and silver. We currently have an interest in two properties located in
      Mexico, one known as the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila </em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">project
      and one known as the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Rey </em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">project.
      In October 2002, we leased some mineral claims in the State of Oaxaca, Mexico,
      designated the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      project.
      These claims cover approximately 1,896 hectares (4,685 acres) and are located
      in
      the historic </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>San
      Jose de Gracia</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      mining
      district in the State of Oaxaca. The </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      project
      is an exploration property in which we lease a 100% interest. Since acquiring
      that interest, we have drilled approximately 6,700 meters (21,981 feet) of
      test
      holes in one section of the property and have encountered gold and silver
      mineralized material. We are continuing our exploration efforts on this
      property. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      2005,
      we obtained some additional mineral claims in the Mexican State of Oaxaca which
      we call the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Rey </em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">project.
      The </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Rey</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      project
      is an exploration stage property in which we acquired mineral claims by filing
      mineral concessions with the Mexican government. We have conducted very limited
      exploration of this property to date. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      are an
      exploration stage company, and there is no assurance that a commercially viable
      mineral deposit exists on either of our properties. Additional exploration
      will
      be required before a final evaluation as to the economic and legal feasibility
      is determined. There is no assurance that the proceeds of this offering will
      be
      successful to complete necessary exploration, evaluation and feasibility
      studies. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      August
      2006, we completed our initial public offering. We sold 4,600,000 shares of
      our
      common stock for cash proceeds of $4,351,200 (net of finders&#8217; fees of $248,800).
      Effective September 14, 2006, our common stock began trading on the OTCBB under
      the symbol &#8220;GORO.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      operations in Mexico are conducted through our wholly-owned Mexican
      subsidiaries, Don David Gold, S.A. de C.V. and Golden Trump S.A. de C.V. All
      references to us or our company in this prospectus include our subsidiaries.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      principal executive offices are located at 222 Milwaukee Street, Suite 301,
      Denver, Colorado 80206, and our telephone number is (303) 320-7708.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Summary
      Financial Data</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following table presents certain selected historical consolidated financial
      data
      about our company. Historical consolidated financial information as of and
      for
      the year ended December&#160;31, 2005 and 2004 has been derived from our
      consolidated financial statements, which have been audited by Stark Winter
      Schenkein&#160;&amp; Co., LLP, our independent registered public accounting
      firm. Historical consolidated financial information as of and for the nine
      months ended September&#160;30, 2006 and 2005 have been derived from our
      unaudited consolidated financial statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">You
      should read the data set forth below in conjunction with our financial
      statements and related notes incorporated by reference in this
      prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="85%">

          <tr>
            <td valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="22%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance&#160;Sheet&#160;Data</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="4%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                30,</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December&#160;31,</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="4%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                and Cash Equivalents</font></div>
            </td>
            <td width="4%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,298,609</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176,182</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                Assets</font></div>
            </td>
            <td width="4%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,342,279</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">246,980</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                Liabilities</font></div>
            </td>
            <td width="4%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">290,519</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,607</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                Liabilities</font></div>
            </td>
            <td width="4%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">290,519</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,607</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
                Equity</font></div>
            </td>
            <td width="4%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,051,760</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">213,373</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="85%">

          <tr>
            <td valign="bottom" width="15%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="11" valign="bottom" width="22%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating&#160;Data</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="15%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <td colspan="5" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
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            <td align="left" valign="bottom" width="15%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">781,090</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,142</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">286,219</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">27,732</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="15%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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            <td width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">516,350</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">87,500</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">87,500</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">500,000</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="15%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property
                Acquisition Related Costs</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100,000</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95,796</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,548</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">68,591</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="15%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exploration
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            </td>
            <td width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">361,735</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">393,783</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">739,570</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">257,383</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="15%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,764,163</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(680,662</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,217,711</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(853,666</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="15%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                (Loss) per Share</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.09</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.04</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.08</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="3%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.08</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="risk">RISK
      FACTORS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>Investment
      in our common stock involves a high degree of risk and could result in a loss
      of
      your entire investment. Prior to making an investment decision, you should
      carefully consider all of the information in this prospectus and, in particular,
      you should evaluate the risk factors set forth below. Additional risks and
      uncertainties not currently known to us or that we currently deem to be
      immaterial may also impair our business operations. If we are unable to prevent
      events that have a negative effect from occurring, then our business may
      suffer.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Risk
      Relating to Our Company</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Since
      we are a new business with no operating history, investors have no basis to
      evaluate our ability to operate profitably. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      were
      organized in 1998 but have had no revenue from operations since our inception.
      Our activities to date have been limited to organizational efforts, raising
      financing, acquiring mining properties and conducting limited exploration.
      We
      face all of the risks commonly encountered by other new businesses, including
      the lack of an established operating history, need for additional capital and
      personnel, and intense competition. There is no assurance our business plan
      will
      be successful. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      report of our independent accountants on our financial statements for the year
      ended December&#160;31, 2005 includes a "going concern" qualification, meaning
      that there is substantial doubt about our ability to continue in
      operation.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      The
      report cited the following factors in support of our accountant's conclusion:
      (i) the substantial losses we incurred for the years ended December 31, 2005
      and
      2004; (ii)&#160;our lack of operating revenue; and (iii) our dependence on sale
      of equity securities and receipt of capital from outside sources to continue
      in
      operation. From inception to September 30, 2006, we have accumulated a loss
      of
      $5,673,478. If we are unable to obtain additional financing or eventually
      produce revenue, we may be forced to sell our assets, curtail or cease
      operations. In any event, investors in our common stock could lose all or part
      of their investment. </font></div><br>
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;
The
      probability of an individual prospect having reserves is extremely remote.
      Therefore, in all likelihood, our properties do not contain any reserves, and
      any funds spent by us on exploration will probably be
      lost.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      A
&#8220;reserve,&#8221; as defined by regulation of the SEC, is that part of a mineral
      deposit which could be economically and legally extracted or produced at the
      time of the reserve determination. Statistically, most mineral prospects do
      not
      contain reserves which can be economically extracted. For this reason, it is
      unlikely that our properties contain any reserves. The funds we have spent
      on
      exploration, as well as funds which we might spend in the future, will probably
      be lost. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>We
      are dependent upon receipt of additional working capital to fund our business
      plan. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      may
      require additional capital for exploration of one or both of our existing
      properties, or acquisition of additional properties. If our exploration program
      proves successful, we will require significant additional capital to fund
      development of the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      project
      and to construct a mill in order to place it into production. In addition,
      we
      will require additional working capital to fund operations pending sale of
      any
      gold or other precious metals. While we completed our initial public offering
      on
      August 17, 2006 for net proceeds of $4,351,200, we have allocated approximately
      $3 million for future exploration costs and anticipate we will need to obtain
      additional financing from outside sources within the next 12 months in order
      to
      continue to fund our business needs. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>We
      have no proved or probable reserves, meaning there is no assurance that we
      can
      economically produce gold or other precious minerals from our properties.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      order
      to demonstrate the availability of proved or probable reserves, it will first
      be
      necessary for us to continue exploration to demonstrate the availability of
      sufficient mineralized material. Exploration is inherently risky, with few
      properties ultimately proving economically successful. If our exploration
      efforts are successful, it will then be necessary for us to engage an outside
      engineering firm to assess geological and other data and develop an economic
      model demonstrating commercial feasibility of the property. This feasibility
      study will require significant additional time and investment. There is no
      assurance we can economically produce gold or other precious metals from our
      properties. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>At
      the present time, we are totally dependent upon production of gold or other
      precious metals from two properties, raising the risk if either or both of
      those
      properties should prove unproductive.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Since we
      have never produced gold or other precious metals from either of our properties,
      and since we have no proved or probable reserves, there is no assurance that
      gold or other precious metals can be economically produced under existing and
      future costs and expenses. If we are unable to economically produce gold from
      either or both of these properties, we would be forced to identify and invest
      substantial sums in one or more additional properties, and there is no assurance
      that such properties would be available on terms favorable to us. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      properties are located in Mexico and are subject to changes in political
      conditions and regulations in that country. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      existing properties are located in Mexico. In the past, Mexico has been subject
      to political instability, changes and uncertainties which may cause changes
      to
      existing government regulations affecting mineral exploration and mining
      activities. Civil or political unrest could disrupt our operations at any time.
      Our mineral exploration and mining activities in Mexico may be adversely
      affected in varying degrees by changing governmental regulations relating to
      the
      mining industry or shifts in political conditions that increase the costs
      related to our activities or maintaining our properties. Finally, Mexico's
      status as a developing country may make it more difficult for us to obtain
      required financing for our project. </font></div><br>
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      business operations may be adversely affected by social and political unrest
      in
      Oaxaca.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      The
      property which we are currently exploring for mineralization is located in
      the
      State of Oaxaca, Mexico.&#160; Oaxaca City, the capital of the State of Oaxaca,
      is currently experiencing escalating social and political unrest.&#160;Certain
      civilian groups seeking political reform have staged protests and
      demonstrations&#160;around various locations in Oaxaca City, including schools,
      government offices and major roadways and violence in the area is increasing.
      Although our property is&#160;located roughly one and one half hour's drive from
      Oaxaca City, these events may still negatively impact our business
      operations.&#160; Our exploration program may be interrupted if we are unable to
      hire qualified personnel or if we are denied access to the site where our
      property is located. We may also be required to make additional expenditures
      to
      provide increased security in order to protect property or personnel located
      at
      our exploration site. Significant delays in exploration or increases in
      expenditures will likely have a material adverse affect on our financial
      condition and results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      ability to continue exploration and extract any minerals that we discover is
      subject to payment of concession fees and royalties and if we fail to satisfy
      these requirements, we may lose our interest in the
      properties.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Mining
      concessions in Mexico are subject to payment of concession fees to the federal
      government or lease payments to the owner of the concessions. Additionally,
      our
      lease for the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      project
      is subject to a net smelter return royalty of </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4%
      where
      production is sold in the form of gold/silver dor<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#233; </font>and</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      5% where
      production is sold in concentrate form. Our failure or inability to pay the
      concession fees to the government may cause us to lose our interest in one
      or
      both of our properties. The requirement to pay royalties to the owner of the
      lease at our </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>El
      Aguila</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      property
      will reduce our profitability if we commence commercial production of gold
      or
      other precious metals.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      ability to develop our property, even if warranted by exploration results,
      is
      subject to the rights of the Ejido (local inhabitants) to surface use for
      agricultural purposes. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">If
      we are
      successful in discovering sufficient amounts of mineralized material to warrant
      production, our ability to mine minerals is subject to making satisfactory
      arrangements with the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>Ejido
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">for
      access and surface disturbances. </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>Ejidos</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      are
      groups of local inhabitants who were granted rights to conduct agricultural
      activities on the property. We must negotiate a satisfactory arrangement with
      these inhabitants in order to disturb or discontinue their rights to farm.
      Our
      inability to successfully negotiate such agreements could impair or impede
      our
      ability to successfully mine the properties. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      volatility of the price of gold could adversely affect our future operations
      and, if warranted, our ability to develop our properties.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      commercial feasibility of our properties and our ability to raise funding to
      conduct continued exploration and development if warranted, is dependent on
      the
      price of gold and other precious metals. The price of gold may also have a
      significant influence on the market price of our common stock and the value
      of
      our properties. Our decision to put a mine into production and to commit the
      funds necessary for that purpose must be made long before the first revenue
      from
      production would be received. A decrease in the price of gold may prevent our
      property from being economically mined or result in the writeoff of assets
      whose
      value is impaired as a result of lower gold prices. The price of gold is
      affected by numerous factors beyond our control, including inflation,
      fluctuation of the United States Dollar and foreign currencies, global and
      regional demand, the sale of gold by central banks, and the political and
      economic conditions of major gold producing countries throughout the world.
      During the last five years, the average annual market price of gold has
      fluctuated between $271 per ounce and $445 per ounce, as shown in the table
      below. Although it is possible for us to protect some price fluctuations by
      hedging in certain circumstances, the volatility of mineral prices represents
      a
      substantial risk, which no amount of planning or technical expertise can
      eliminate. </font></div>
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    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2001</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2002</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$271</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$310</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$364</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$406</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td align="left" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$445</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Competition
      in the mining industry is intense, and we have limited financial and personnel
      resources with which to compete.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Competition in the mining industry for desirable properties, investment capital
      and personnel is intense. Numerous companies headquartered in the United States,
      Canada and elsewhere throughout the world compete for properties on a global
      basis. We are an insignificant participant in the gold mining industry due
      to
      our limited financial and personnel resources. We may be unable to attract
      the
      necessary investment capital to fully explore and if warranted, develop our
      properties and unable to acquire other desirable properties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>An
      adequate supply of water may not be available to complete desired development
      of
      our property.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      If we
      make a discovery sufficient enough to warrant putting our property into
      production, we will require additional amounts of water for our operations.
      We
      would be required to pump water from the Totolapam River to any facility we
      may
      construct on our property. Water rights are owned by the Mexican nation and
      administered by the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>Comision
      Nacional de Agua </em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(&#8220;CNA&#8221;),
      an agency of the Mexican government. The CNA has granted water concessions
      to
      private parties throughout the area defined as the Oaxaca Hydrologic Basin,
      however, there is no assurance that we will be granted such concessions.
      Accordingly, we may not have access to the amount of water needed to operate
      a
      mine at the property.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Since
      most of our expenses are paid in Mexican pesos, and we anticipate selling any
      production from our properties in United States dollars, we are subject to
      adverse changes in currency values that will be difficult to prevent.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      operations in the future could be affected by changes in the value of the
      Mexican peso against the United States dollar. At the present time, since we
      have no production, we have no plans or policies to utilize forward sales
      contracts or currency options to minimize this exposure. If and when these
      measures are implemented, there is no assurance they will be cost effective
      or
      be able to fully offset the effect of any currency fluctuations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      activities in Mexico are subject to significant environmental regulations,
      which
      could raise the cost of doing business.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Mining
      operations are subject to environmental regulation by SEMARNAT, the
      environmental protection agency of Mexico. Regulations require that an
      environmental impact statement, known in Mexico as a </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><em>Manifiestacion
      de Impacto Ambiental</em></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">,
      be
      prepared by a third party contractor for submission to SEMARNAT. Studies
      required to support this impact statement include a detailed analysis of many
      subject areas, including soil, water, vegetation, wildlife, cultural resources
      and socio-economic impacts. We may also be required to submit proof of local
      community support for a project to obtain final approval. Significant
      environmental legislation exists in Mexico, including fines and penalties for
      spills, release of emissions into the air, seepage and other environmental
      damage. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      nature of mineral exploration and production activities involves a high degree
      of risk and the possibility of uninsured losses. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exploration
      for minerals is highly speculative and involves greater risk than many other
      businesses. Our operations are subject to all of the operating hazards and
      risks
      normally incident to exploring for mineral properties, such as, but not limited
      to: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">encountering
                unusual or unexpected formations;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">environmental
                pollution;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">personal
                injury, flooding and landslides; </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">variations
                in grades of ore; </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">labor
                disputes; and</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">decrease
                in value of reserves due to a lower gold
                price.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      currently have no insurance to guard against any of these risks. If we determine
      that capitalized costs associated with any of our mineral interests are not
      likely to be recovered, we would incur a writedown on our investment in such
      property interest. All of these factors may result in losses in relation to
      amounts spent which are not recoverable. </font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;If
      we
      lose any of our existing employees or consultants, there is no assurance that
      we
      would find a suitable replacement on acceptable terms.</em></strong> If either
      of our current employees or our principal consultant in Mexico were to die,
      become disabled or leave the company, we would be forced to identify and retain
      individuals to replace them. Messrs. William and David Reid are our only
      employees at this time. Jose Perez Reynoso is our consultant in Mexico who
      oversees our properties and operations. There is no assurance that we can find
      suitable individuals to replace them or to add to our employee base if that
      becomes necessary. We are entirely dependent on these individuals as our only
      personnel at this time. We have no life insurance on any individual at this
      time, and we may be unable to hire a suitable replacement for them on favorable
      terms, should that become necessary. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>In
      the event of a dispute regarding title to our property or any facet of our
      operations, it will likely be necessary for us to resolve the dispute in Mexico,
      where we would be faced with unfamiliar laws and procedures.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      resolution of disputes in foreign countries can be costly and time consuming,
      similar to the situation in the United States. However, in a foreign country,
      we
      face the additional burden of understanding unfamiliar laws and procedures.
      We
      may not be entitled to a jury trial, as we might be in the United States.
      Further, to litigate in any foreign country, we would be faced with the
      necessity of hiring lawyers and other professionals who are familiar with the
      foreign laws. For these reasons, we may incur unforeseen losses if we are forced
      to resolve a dispute in Mexico or any other foreign country.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>While
      we believe we have adequate internal controls over financial reporting, we
      will
      be required to evaluate our internal controls under Section 404 of the
      Sarbanes-Oxley Act of 2002 and any adverse results from such evaluation could
      result in a loss of investor confidence in our financial reports and have a
      material adverse effect on the price of our common stock.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 404 of the Sarbanes-Oxley Act of 2002, we expect that we will be
      required to furnish a report by our management on internal controls for the
      fiscal year ending December 2007. Such a report must contain, among other
      matters, an assessment of the effectiveness of our internal controls over
      financial reporting, including a statement as to whether or not our internal
      controls are effective. This assessment must include disclosure of any material
      weaknesses in our internal controls over financial reporting identified by
      our
      management. Such a report must also contain a statement that our auditors have
      issued an attestation report on our management&#8217;s assessment of such internal
      controls. While we believe our internal controls over financial reporting are
      effective, we are still constructing the system, processing documentation and
      performing the evaluations needed to comply with Section 404, which is both
      costly and challenging. We may not be able to complete our evaluation, testing
      and any required remediation in a timely fashion. If we are unable to assert
      that our internal controls over financial reporting are effective, or if we
      disclose significant deficiencies or material weaknesses in our internal
      controls, investors could lose confidence in the accuracy and completeness
      of
      our financial reports, which would have a material adverse effect on our stock
      price.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      laws of the State of Colorado and our Articles of Incorporation may protect
      our
      directors from certain types of lawsuits. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      laws
      of the State of Colorado provide that our directors will not be liable to us
      or
      our shareholders for monetary damages for all but certain types of conduct
      as
      directors of the company. Our Articles of Incorporation permit us to indemnify
      our directors and officers against all damages incurred in connection with
      our
      business to the fullest extent provided or allowed by law. The exculpation
      provisions may have the effect of preventing shareholders from recovering
      damages against our directors caused by their negligence, poor judgment or
      other
      circumstances. The indemnification provisions may require us to use our limited
      assets to defend our directors and officers against claims, including claims
      arising out of their negligence, poor judgment, or other
      circumstances.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Risks
      Relating to Our Common Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      sale of a substantial number of shares of our common stock may cause the price
      of our common stock to decline.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      In
      addition to the 2,240,000 shares of common stock that may be offered by the
      selling shareholders from time to time under this prospectus, we filed a
      registration statement with the SEC that was declared effective on May 15,
      2006
      to qualify the resale of approximately 8.9 million shares of common stock from
      time to time. Additionally, a large number of shares of our common stock will
      become eligible for sale in the future under Rule 144. Under Rule 144, and
      under
      certain circumstances, an owner is permitted to sell every three months the
      greater of: (i) 1% of the amount of our outstanding common stock, or (ii) the
      average weekly trading volume of our common stock for the four weeks preceding
      the sale. It is likely that market sales of large amounts of common stock (or
      the potential for those sales even if they do not actually occur) may cause
      the
      market price of our common stock to decline, which may make it difficult to
      sell
      our common stock in the future at a time and price which we deem reasonable
      or
      appropriate and may also cause you to lose all or a part of your
      investment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>The
      sale of our common stock by the selling shareholders may depress the price
      of
      our common stock due to the limited trading market which
      exists.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Due to a
      number of factors, including the lack of listing of our common stock on a
      national securities exchange, the trading volume in our common stock is limited.
      Since we were approved for trading on the OTCBB on September 14, 2006, our
      trading volume has averaged approximately&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">60,000</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      shares
      per day. As a result, the sale of a significant amount of common stock by the
      selling shareholders may depress the price of our common stock. As a result,
      you
      may lose all or a portion of your investment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>A
      small number of existing shareholders own a significant amount of our common
      stock, which could limit your ability to influence the outcome of any
      shareholder vote. </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      executive officers and directors,&#160;beneficially own approximately
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">40</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">%
      of our
      common stock as of the date of this prospectus</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      Under
      our Articles of Incorporation and Colorado law, the vote of a majority of the
      shares outstanding is generally required to approve most shareholder action.
      As
      a result, these individuals will be able to&#160;influence the outcome of
      shareholder votes for the foreseeable future, including votes concerning the
      election of directors, amendments to our Articles of Incorporation or proposed
      mergers or other significant corporate transactions. We have no existing
      agreements or plans for mergers or other corporate transactions that would
      require a shareholder vote at this time. However, shareholders should be aware
      that they may have limited ability to influence the outcome of any vote in
      the
      future. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Since
      our common stock is not presently quoted on Nasdaq or listed on a stock
      exchange, trading in our shares will likely be subject to rules governing "penny
      stocks," which will impair trading activity in our shares.
</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      common stock may be subject to rules adopted by the SEC regulating broker-dealer
      practices in connection with transactions in penny stocks. Those disclosure
      rules applicable to penny stocks require a broker-dealer, prior to a transaction
      in a penny stock not otherwise exempt from the rules, to deliver a standardized
      disclosure document required by the SEC. These rules also require a cooling
      off
      period before the transaction can be finalized. These requirements may have
      the
      effect of reducing the level of trading activity in any secondary market for
      our
      common stock. Many brokers may be unwilling to engage in transactions in our
      common stock because of the added disclosure requirements, thereby making it
      more difficult for stockholders to dispose of their shares. </font></div><br>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>A
      contract right allowing one of our largest shareholders the first opportunity
      to
      purchase any common stock offered by us in the future may result in a change
      in
      control.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      Under
      the terms of an agreement entered into with one of our largest shareholders,
      we
      are obligated to offer this entity the first right to purchase our common stock
      in any future offering until August 2008. The holder of this right is Heemskirk
      Consolidated Limited ("Heemskirk"). If Heemskirk exercises this right in
      connection with any future offering of our common stock, the percentage interest
      in our company owned by it could increase. This may result in a change in
      control and could allow Heemskirk the ability to influence the management or
      policies of our company. For example, if Heemskirk acquires enough stock to
      become the holder of a majority of our outstanding voting stock, it could elect
      the entire Board of Directors. Even if it does not acquire an absolute majority
      of our stock but increases its voting interest in the company, it could wage
      a
      proxy battle and influence who our Board of Directors nominates as directors
      in
      the future. These and other events could have the effect of changing the way
      that our company is operated. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;&#160;&#160;&#160;
      Our stock price may be volatile and as a result you could lose all or part
      of
      your investment</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      In
      addition to volatility associated with&#160;over the counter&#160;securities in
      general, the value of your investment could decline due to the impact of any
      of
      the following factors upon the market price of our common stock:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Changes
      in the worldwide price for gold;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Disappointing
      results from our exploration efforts;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Failure
      to meet our revenue or profit goals or operating budget;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Decline
      in demand for our common stock;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Downward
      revisions in securities analysts' estimates or changes in general market
      conditions;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Technological
      innovations by competitors or in competing technologies;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Investor
      perception of our industry or our prospects; and </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">General
      economic trends</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      addition, stock markets have experienced extreme price and volume fluctuations
      and the market prices of securities have been highly volatile. These
      fluctuations are often unrelated to operating performance and may adversely
      affect the market price of our common stock. As a result, investors may be
      unable to resell their shares at a fair price.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>Issuances
      of our stock in the future could dilute existing shareholders and adversely
      affect the market price of our common stock, if a public trading market
      develops</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      We have
      the authority to issue up to 60,000,000 shares of common stock, 5,000,000 shares
      of preferred stock, and to issue options and warrants to purchase shares of
      our
      common stock without stockholder approval. Because our common stock is not
      currently quoted in Nasdaq or listed on an exchange, we are not required to
      solicit shareholder approval prior to issuing large blocks of our stock. These
      future issuances could be at values substantially below the price paid for
      our
      common stock by our current shareholders. In addition, we could issue large
      blocks of our common stock to fend off unwanted tender offers or hostile
      takeovers without further stockholder approval. Because trading in our common
      stock is limited, the issuance of our stock may have a disproportionately large
      impact on its price compared to larger companies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><em>We
      have never paid dividends on our common stock and we do not anticipate paying
      any in the foreseeable future.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      We have
      not paid dividends on our common stock to date, and we may not be in a position
      to pay dividends for the foreseeable future. Our ability to pay dividends will
      depend on our ability to successfully develop one or more properties and
      generate revenue from operations. Further, our initial earnings, if any, will
      likely be retained to finance our operations. Any future dividends will depend
      upon our earnings, our then-existing financial requirements and other factors,
      and will be at the discretion of our Board of Directors.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="FORWARDLOOKINGSTATEMENTS">FORWARD-LOOKING
      STATEMENTS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">This
      prospectus contains or incorporates by reference forward-looking statements
      within the meaning of the United States Private Securities Litigation Reform
      Act
      of 1995 concerning our future business plans and strategies, the proposed
      exploration and development of our property, the receipt of working capital,
      future revenues and other statements that are not historical in nature. In
      this
      prospectus, forward-looking statements are often identified by the words
&#8220;anticipate,&#8221; &#8220;plan,&#8221; &#8220;believe,&#8221; &#8220;expect,&#8221; &#8220;estimate,&#8221; and the like. These
      forward-looking statements reflect our current beliefs, expectations and
      opinions with respect to future events, and involve future risks and
      uncertainties which could cause actual results to differ materially from those
      expressed or implied.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      addition to the specific factors identified under &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8221;
above,
      other uncertainties that could affect the accuracy of forward-looking statements
      include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">decisions
      of foreign countries and banks within those countries;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">technological
      changes in the mining industry;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">our
      costs;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">the
      level
      of demand for our products;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">changes
      in our business strategy;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">interpretation
      of drill hole results and the geology, grade and continuity of
      mineralization;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">the
      uncertainty of reserve estimates and timing of development expenditures;
      and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">commodity
      price fluctuations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">This
      list, together with the factors identified under &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">,&#8221;
is
      not
      exhaustive of the factors that may affect any of our forward-looking statements.
      You should read this prospectus completely and with the understanding that
      our
      actual future results may be materially different from what we expect. These
      forward-looking statements represent our beliefs, expectations and opinions
      only
      as of the date of this prospectus. We do not intend to update these forward
      looking statements except as required by law. We qualify all of our
      forward-looking statements by these cautionary statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Prospective
      investors are urged not to put undue reliance on forward-looking
      statements.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="USEOFPROCEEDS">USE
      OF PROCEEDS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      will
      not receive any proceeds from the sale by the selling shareholders of shares
      of
      common stock pursuant to this prospectus. Of the total amount of shares which
      may be offered pursuant to this prospectus, 1,900,000 shares underlie stock
      options granted under our Plan. We will receive proceeds from the exercise
      of
      these outstanding stock options upon their exercise based on the exercise price
      of the options, of which 1,400,000 options may be exercised for $0.25 per share
      and 500,000 options may be exercised for $1.00 per share. If all stock options
      were exercised, we would receive aggregate proceeds of $850,000. All proceeds,
      if any, from the exercise of these options will be added to our working capital.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="SELLINGSHAREHOLDERS">SELLING
      SHAREHOLDERS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      selling shareholders named in this prospectus are offering all of the 2,240,000
      shares offered through this prospectus. The shares offered by the selling
      shareholders consist of 1,900,000 shares which may be issued upon exercise
      of
      outstanding stock options and 340,000 shares of common stock that are currently
      outstanding and that may be sold from time to time. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following table provides, as of November 30, 2006, information regarding the
      beneficial ownership of our common stock held by each of the selling
      shareholders, including:</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.
      the
      number of shares owned by each selling shareholder prior to this
      offering;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2.
      the
      total number of shares that are to be offered by each selling shareholder;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3.
      the
      total number of shares that will be owned by each selling shareholder upon
      completion of the offering; and </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.
      the
      percentage of shares owned by each selling shareholder upon completion of the
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Information
      with respect to beneficial ownership is based upon information obtained from
      the
      selling shareholders. Information with respect to &#8220;Number of Shares Beneficially
      Owned Prior to the Offering&#8221; includes the shares issuable upon exercise of the
      stock options held by the selling shareholders that are exercisable within
      60
      days of the date of this prospectus. The &#8220;Number of Shares that may be Offered&#8221;
includes the shares that may be acquired by the selling shareholders pursuant
      to
      the exercise of stock options granted to the selling shareholders pursuant
      to
      our Plan. Information with respect to &#8220;Common Stock Beneficially Owned After the
      Offering&#8221; assumes the sale of all of the shares offered by this prospectus and
      no other purchases or sales of our common stock by the selling shareholders.
      The
      percentage of common stock to be owned upon completion of the offering is based
      on 23,504,852</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">shares
      of
      common stock outstanding as of November 30, </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2006.
      Except as described below and to our knowledge, such selling shareholder
      beneficially owns and has sole voting and investment power over all
      shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Because
      the selling shareholders may offer all, some or none of the shares pursuant
      to
      the offering contemplated by this prospectus, and because this offering is
      not
      being underwritten on a firm commitment basis, no estimate can be given as
      to
      the amount of common stock that will be held upon termination of this offering.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following table contains information for the selling shareholders offering
      2,240,000 shares pursuant to the Plan:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td valign="bottom" width="43%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Name
                of Selling Shareholder(1)</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                of Shares Beneficially</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Owned
                Prior to the Offering</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Number
                of Shares that may be Offered</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Common
                Stock Beneficially Owned After the Offering</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percent
                (%)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">William
                W. Reid(2)</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5,219,606(5)(6</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">800,000(5</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4,419,606(6</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">18.2</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">David
                C. Reid(2)</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4,311,539(7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">600,000(7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3,711,539</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">15.4</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Bill
                M.&#160;Conrad(3)</font></div>
            </td>
            <td width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">600,000(8</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">600,000(8</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">0</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr bgcolor="#ffff80">
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">William
                F. Pass(4)</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1,561,207</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">240,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1,321,027</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ffff80;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.6</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffff80;"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">___________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(1)
      Except as otherwise indicated, the address of each beneficial owner is c/o
      Gold
      Resource Corporation, 222 Milwaukee Street, Suite 301, Denver, Colorado 80206.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(2)
      Officer and director.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(3)
      Director.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(4)
      Former consultant whose address is 2201 Kipling Street, Suite 100, Lakewood,
      Colorado 80215.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(5)
      Includes 800,000 shares underlying options which are exercisable as of the
      date
      of this prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(6)
      Includes 2,200,000 shares owned by the reporting person&#8217;s spouse, of which he
      disclaims beneficial ownership. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(7)
      Includes 600,000 shares underlying options, which are exercisable as of the
      date
      of this prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(8)
      Includes 500,000 shares underlying options, which are exercisable as of the
      date
      of this prospectus.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Each
      selling shareholder has purchased or will acquire our common stock for
      investment and with no present intention of distributing or reselling such
      shares unless registered for resale. However, in recognition of the fact that
      holders of restricted securities may wish to be legally permitted to sell their
      shares when they deem appropriate, we have filed a Form S-8 registration
      statement with the SEC of which this prospectus forms a part with respect to
      the
      resale of the shares from time to time in the over the counter market or in
      privately negotiated transactions. We have agreed to prepare and file such
      amendments and supplements to the registration statement and to keep the
      registration statement effective until all the shares offered hereby have been
      sold pursuant thereto, until such shares are no longer, by reason of Rule 144
      under the Securities Act or any other rule of similar effect, required to be
      registered for the sale thereof by the selling shareholders. Sales of shares
      under this prospectus by the selling shareholders, and any other person with
      whom he or she is acting in concert for the purpose of selling our common stock,
      must not exceed, in any three-month period, the amount specified in Rule 144(e)
      promulgated under the Securities Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certain
      of the selling shareholders, their associates and affiliates may from time
      to
      time perform services for our company or its subsidiaries in the ordinary course
      of business. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="PLANOFDISTRIBUTION">PLAN
      OF DISTRIBUTION</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      shares offered hereby may be sold from time to time to purchasers directly
      by
      the selling shareholders. Alternatively, the selling shareholders may from
      time
      to time offer the shares to or through underwriters, broker-dealers or agents,
      who may receive compensation in the form of underwriting discounts, concessions
      or commissions from the selling shareholders or the purchasers of shares for
      whom they may act as agents. The selling shareholders and any underwriters,
      broker-dealers or agents that participate in the distribution of shares may
      be
      deemed to be "underwriters" within the meaning of the Securities Act and any
      profit on the sale of the shares by them deemed to be underwriting discounts
      and
      commissions under the Securities Act. The selling shareholders may agree to
      indemnify any broker or dealer or agent against certain liabilities related
      to
      the selling of the shares, including liabilities arising under the Securities
      Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      shares offered in this prospectus may be sold from time to time in one or more
      transactions at fixed prices, at prevailing market prices at the time of sale,
      at varying prices determined at the time of sale or at negotiated prices. The
      sale of the shares may be effected in transactions (which may involve crosses
      or
      block transactions) (i) on any national or international securities exchange
      or
      quotation service on which the shares may be listed or quoted at the time of
      sale; (ii) in the over the counter market; (iii) in transactions otherwise
      than
      on such exchanges or in the over the counter market; or (iv) through the writing
      of options. At the time a particular offering of the shares is made, a
      prospectus supplement, if required, will be distributed which will set forth
      the
      aggregate amount and type of shares being offered and the terms of the offering,
      including the name or names of any underwriters, broker-dealers or agents,
      any
      discounts, commissions and other terms constituting compensation from the
      selling shareholders and any discounts, commissions or concessions allowed
      or
      reallowed or paid to broker-dealers. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      addition to selling their shares under this prospectus, the selling shareholders
      may transfer their shares in other ways not involving market makers or
      established trading markets, including directly by gift, distribution, or other
      transfer, or sell their shares under Rule 144 of the Securities Act rather
      than
      under this prospectus, if the transaction meets the requirements of Rule 144.
      Any selling shareholder who uses this prospectus to sell his shares will be
      subject to the prospectus delivery requirements of the&#160;Securities
      Act.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Regulation
      M under the Securities Exchange Act of 1934 provides that during the period
      that
      any person is engaged in the distribution of our shares of common stock, as
      defined in Regulation M, such person generally may not purchase our common
      stock. The selling shareholders are subject to these restrictions, which may
      limit the timing of purchases and sales of our common stock by the selling
      shareholders. This may affect the marketability of our common stock.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">All
      expenses of the registration of the shares will be paid by us, including,
      without limitation, SEC filing fees and expenses and compliance with state
      securities or "blue sky" laws; provided, however, that the selling shareholders
      will pay all underwriting discounts and selling commissions, if any.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="DESCRIPTIONOFCAPITALSTOCK">DESCRIPTION
      OF CAPITAL
      STOCK</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      authorized capital consists of 60,000,000 shares of common stock, $0.001 par
      value per share, and 5,000,000 shares of preferred stock, $0.001 per share.
      As
      of November 30, 2006, we had 23,504,852 shares of common stock issued and
      outstanding, and no shares of preferred stock outstanding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following discussion summarizes the rights and privileges of our capital stock.
      This summary is not complete, and you should refer to our Articles of
      Incorporation, as amended, a copy of which is filed with the SEC as an exhibit
      to our registration statement dated October 28, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      holders of our common stock are entitled to one vote for each share held of
      record on all matters submitted to stockholders, including the election of
      directors. Cumulative voting for directors is not permitted. Except as provided
      by special agreement, the holders of common stock are not entitled to any
      preemptive rights and the shares are not redeemable or convertible. All
      outstanding common stock is, and all common stock offered hereby will be, when
      issued and paid for, fully paid and nonassessable. The number of authorized
      shares of common stock may be increased or decreased (but not below the number
      of shares then outstanding or otherwise reserved under obligations for issuance
      by us) by the affirmative vote of a majority of shares cast at a meeting of
      our
      shareholders at which a quorum is present.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Articles of Incorporation and Bylaws do not include any provision that would
      delay, defer or prevent a change in control of our company. However, as a matter
      of Colorado law, certain significant transactions would require the affirmative
      vote of a majority of the shares eligible to vote at a meeting of shareholders
      which requirement could result in delays to or greater cost associated with
      a
      change in control of the company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      holders of our common stock are entitled to dividends if, as and when declared
      by our Board of Directors from legally available funds, subject to the
      preferential rights of the holders of any outstanding preferred stock. Upon
      any
      voluntary or involuntary liquidation, dissolution or winding up of our affairs,
      the holders of our common stock are entitled to share, on a pro rata basis,
      all
      assets remaining after payment to creditors and prior to distribution rights,
      if
      any, of any series of outstanding preferred stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Preferred
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Articles of Incorporation vest our Board of Directors with authority to divide
      the preferred stock into series and to fix and determine the relative rights
      and
      preferences of the shares of any such series so established to the full extent
      permitted by the laws of the State of Colorado and our Articles of Incorporation
      in respect to, among other things, (i) the number of shares to constitute such
      series and the distinctive designations thereof; (ii) the rate and preference
      of
      dividends, if any, the time of payment of dividends, whether dividends are
      cumulative and the date from which any dividend shall accrue; (iii) whether
      preferred stock may be redeemed and, if so, the redemption price and the terms
      and conditions of redemption; (iv) the liquidation preferences payable on
      preferred stock in the event of involuntary or voluntary liquidation; (v)
      sinking fund or other provisions, if any, for redemption or purchase of
      preferred stock; (vi) the terms and conditions by which preferred stock may
      be
      converted, if the preferred stock of any series are issued with the privilege
      of
      conversion; and (vii) voting rights, if any. As of the date of this prospectus,
      we have not designated or authorized any preferred stock for issuance.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Restrictions
      on Future Sales of Our Common Stock </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of an agreement entered into with one holder of our common stock, we
      are
      obligated to offer Heemskirk Consolidated Limited the first right to purchase
      our common stock in any future offering until August 2008. We do not believe
      the
      terms of this arrangement will affect&#160;the market for our common stock or
      our future operations. However, it provides the holder the ability to preserve
      or increase its percentage interest in our company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Transfer
      Agent </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      have
      appointed Corporate Stock Transfer, Inc. ("CST") in Denver as transfer agent
      for
      our common stock. CST is located at 3200 Cherry Creek Drive South, Suite 430,
      Denver, Colorado 80209 and its telephone number is (303) 282-4800. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="LEGALMATTERS">LEGAL
      MATTERS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      validity of the shares of common stock offered hereby by will be passed upon
      for
      us by Dufford &amp; Brown, P.C., Denver, Colorado.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><a name="expert2">EXPERTS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      financial statements as of December 31, 2005 and for the two years then ended
      have been incorporated in this prospectus in reliance on the report of Stark
      Winter Schenkein &amp; Co., LLP, our independent registered public accounting
      firm. These financial statements have been incorporated herein on the authority
      of this firm as an expert in auditing and accounting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">NO
      DEALER, SALESMAN, OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
      INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
      PROSPECTUS IN CONNECTION WITH THE OFFERING HEREIN CONTAINED AND, IF GIVEN OR
      MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING
      BEEN
      AUTHORIZED BY THE COMPANY OR THE SELLING SHAREHOLDERS. THIS PROSPECTUS DOES
      NOT
      CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, THE
      SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS
      UNLAWFUL TO MAKE AN OFFER OR SOLICITATION. NEITHER THE DELIVERY OF THIS
      PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE
      AN
      IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE
      THE DATE HEREOF OR THAT ANY INFORMATION CONTAINED HEREIN IS CORRECT AS TO ANY
      OF
      THE TIME SUBSEQUENT TO ITS DATE. HOWEVER, THE COMPANY HAS UNDERTAKEN TO AMEND
      THE REGISTRATION STATEMENT OF WHICH THIS PROSPECTUS IS A PART TO REFLECT ANY
      FACTS OR EVENTS ARISING AFTER THE EFFECTIVE DATE THEREOF WHICH INDIVIDUALLY
      OR
      IN THE AGGREGATE REPRESENT A FUNDAMENTAL CHANGE IN THE INFORMATION SET FORTH
      IN
      THE REGISTRATION STATEMENT. IT IS ANTICIPATED, HOWEVER, THAT MOST UPDATED
      INFORMATION WILL BE INCORPORATED HEREIN BY REFERENCE TO THE COMPANY'S REPORTS
      FILED UNDER THE SECURITIES EXCHANGE ACT OF 1934. SEE "DOCUMENTS INCORPORATED
      BY
      REFERENCE."</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">ALL
      DEALERS EFFECTING TRANSACTIONS IN THE REGISTERED SECURITIES, WHETHER OR NOT
      PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED TO DELIVER A PROSPECTUS.
      THIS IS IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A PROSPECTUS WHEN
      ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD ALLOTMENTS OR
      SUBSCRIPTIONS. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>You
                  should rely only on the information contained in this document
                  or that we
                  have referred you to. We have not authorized anyone to provide
                  you with
                  information that is different. This prospectus is not an offer
                  to sell
                  common stock and is not soliciting an offer to buy common stock
                  in any
                  state where the offer or sale is not permitted.</strong></font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="36%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>2,240,000
                  Shares</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>GOLD
                  RESOURCE CORPORATION</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>Common
                  Stock</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  TABLE OF CONTENTS</strong></font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="36%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="36%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Caption</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#additional">Additional
                  Available Information<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;5</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#DOCUMENTSinc">Documents
                  Incorporated by Reference<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;5</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#summar">Summary<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;
                  6</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#risk">Risk
                  Factors<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;7</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#FORWARDLOOKINGSTATEMENTS">Forward-Looking
                  Statements<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;
                  14</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a href="#USEOFPROCEEDS"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Use
                  of
                  Proceeds&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  14</font></a></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#SELLINGSHAREHOLDERS">Selling
                  Shareholders<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  14</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#PLANOFDISTRIBUTION">Plan
                  of Distribution<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  16</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#DESCRIPTIONOFCAPITALSTOCK">Description
                  of Capital Stock<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;
                  17</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#LEGALMATTERS">Legal
                  Matters<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  18</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><a href="#expert2">Experts&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;18</a></font></div>
              </td>
              <td align="left" valign="top" width="5%" style="border-bottom: medium none;">&#160;</td>
              <td valign="top" width="36%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>____________</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>____________</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%" style="border-bottom: medium none;">
              </td>
              <td align="left" valign="top" width="5%" style="border-bottom: medium none;">
              </td>
              <td valign="top" width="36%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="top" width="36%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="top" width="36%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="36%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>December
                  1</strong><strong>, 2006</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="top" width="36%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>PART
      II</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3. Incorporation of Documents by Reference.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Included
      in prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      4. Description of Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Included
      in prospectus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      5. Interests of Named Experts and Counsel. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Not
      applicable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      6. Indemnification of Directors and Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Articles of Incorporation and Bylaws provide that we must indemnify, to the
      fullest extent permitted by Colorado law, any of our directors, officers,
      employees or agents made or threatened to be made a party to a proceeding,
      by
      reason of the person serving or having served in a capacity as such, against
      judgments, penalties, fines, settlements and reasonable expenses incurred by
      the
      person in connection with the proceeding if certain standards are met. At
      present, there is no pending litigation or proceeding involving any of our
      directors, officers, employees or agents where indemnification will be required
      or permitted. Insofar as indemnification for liabilities arising under the
      Securities Act of 1933 may be permitted to our directors, officers and
      controlling persons pursuant to the foregoing provisions, or otherwise, we
      have
      been advised that in the opinion of the SEC, such indemnification is against
      public policy as expressed in the Securities Act of 1933 and is, therefore,
      unenforceable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Colorado Business Corporation Act (the "Act") allows indemnification of
      directors, officers, employees and agents of a company against liabilities
      incurred in any proceeding in which an individual is made a party because he
      was
      a director, officer, employee or agent of the company if such person conducted
      himself in good faith and reasonable believed his actions were in, or not
      opposed to, the best interests of the company, and with respect to any criminal
      action or proceeding, had no reasonable cause to believe his conduct was
      unlawful. A person must be found to be entitled to indemnification under this
      statutory standard by procedures designed to assure that disinterested members
      of the board of directors have approved indemnification or that, absent the
      ability to obtain sufficient numbers of disinterested directors, independent
      counsel or shareholders have approved the indemnification based on a finding
      that the person has met the standard. Indemnification is limited to reasonable
      expenses. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Articles of Incorporation limit the liability of our directors to the fullest
      extent permitted by the Act. Specifically, our directors will not be personally
      liable for monetary damages for breach of fiduciary duty as directors, except
      for:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">any
                breach of the duty of loyalty to us or our
                stockholders,</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">acts
                or omissions not in good faith or that involved intentional misconduct
                or
                a knowing violation of law,</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">dividends
                or other distributions of corporate assets that are in contravention
                of
                certain statutory or contractual
                restrictions,</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">violations
                of certain laws, or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">any
                transaction from which the director derives an improper personal
                benefit.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman" size="3">II-1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Liability
      under federal securities law is not limited by the Articles.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      7. Exemption from Registration Claimed. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      8. Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following exhibits are filed with this registration statement:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Number</u><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;&#160;
</font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Description
      of Exhibits</u></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;
      5<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Opinion
      of Dufford &amp; Brown, P.C.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">23.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Consent
      of Stark Winter Schenkein &amp; Co., LLP. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">23.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Consent
      of Dufford &amp; Brown, P.C. (included in Exhibit 5).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      9. Undertakings.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      undersigned registrant hereby undertakes, except as otherwise specifically
      provided in the rules of the Securities and Exchange Commission promulgated
      under the Securities Act of 1933: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      file,
      during any period in which offers or sales are being made, a post-effective
      amendment to this registration statement: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      include any prospectus required by Section 10(a)(3) of the Securities Act of
      1933; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      reflect in the prospectus any facts or events arising after the effective date
      of the registration statement (or the most recent post-effective amendment
      thereof) which, individually or in the aggregate, represent a fundamental change
      in the information set forth in the registration statement. Notwithstanding
      the
      foregoing, any increase or decrease in volume of securities offered (if the
      total dollar value of securities offered would not exceed that which was
      registered) and any deviation from the low or high end of the estimated maximum
      offering range may be reflected in the form of prospectus filed with the
      Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
      and price represent no more than 20% change in the maximum aggregate offering
      price set forth in the "Calculations of Registration Fee" table in the effective
      registration statement; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      include any material information with respect to the plan of distribution not
      previously disclosed in the registration statement or any material change to
      such information in the registration statement; Provided, however,
      that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">II-</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2</font></div>
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">A.&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Paragraphs
      (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is on Form
      S-8, and the information required to be included in a post-effective amendment
      by those paragraphs is contained in reports filed with or furnished to the
      Commission by the registrant pursuant to section 13 or section 15(d) of the
      Securities Exchange Act of 1934 that are incorporated by reference in the
      registration statement; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 99pt; TEXT-INDENT: -99pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">B.&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Paragraphs
      (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the
      registration statement is on Form S-3 or Form F-3 and the information required
      to be included in a post-effective amendment by those paragraphs is contained
      in
      reports filed with or furnished to the Commission by the registrant pursuant
      to
      section 13 or section 15(d) of the Securities Exchange Act of 1934 that are
      incorporated by reference in the registration statement, or is contained in
      a
      form of prospectus filed pursuant to Rule 424(b) that is part of the
      registration statement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(2)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">That,
      for
      the purpose of determining any liability under the Securities Act of 1933,
      each
      such post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering thereof.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(3)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      remove
      from registration by means of a post-effective amendment any of the securities
      being registered that remain unsold at the termination of the offering.
</font></div>
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      undersigned registrant hereby undertakes that, for purposes of determining
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      liability under the Securities Act of 1933, each filing of the registrant's
      annual report pursuant to section 13(a) or section 15(d) of the Securities
      Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
      plan's annual report pursuant to section 15(d) of the Securities Exchange Act
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      1934) that is incorporated by reference in the registration statement shall
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      therein, and the offering of such securities at that time shall be deemed to
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      as indemnification for liabilities arising under the Securities Act of 1933
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      pursuant to the foregoing provisions, or otherwise, the registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Act and is,
      therefore, unenforceable. In the event that a claim for indemnification against
      such liabilities (other than the payment by the registrant of expenses incurred
      or paid by a director, officer or controlling person of the registrant in the
      successful defense of any action, suit or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act of 1933, as amended, and will be
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      to the requirements of the Securities Act of 1933, the Registrant certifies
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      it has reasonable grounds to believe that it meets all of the requirements
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      filing on Form S-8 and has caused this Registration Statement to be signed
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      and State of Colorado, on the&#160;30<sup>th</sup> day of November, 2006.
</font></div>
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      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

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            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong><font size="3">GOLD
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              <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                (Registrant)</div>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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                William W. Reid</div>
              <div>President and Chief Executive Officer</div>
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            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="40%">&#160;</td>
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              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td align="left" width="40%">
              </td>
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            <tr valign="top" bgcolor="#ffffff">
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              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="40%">&#160;</td>
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        </table><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
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          <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

              <tr valign="top" bgcolor="#ffffff">
                <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="40%">&#160;</td>
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                    November 30, 2006</font></div>
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                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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              <tr valign="top" bgcolor="#ffffff">
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                </td>
                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                <td width="40%">&#160;</td>
              </tr>

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          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
            <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

                <tr valign="top" bgcolor="#ffffff">
                  <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;<font size="3">Bill
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                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="40%">&#160;</td>
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                <tr valign="top" bgcolor="#ffffff">
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                    <hr style="COLOR: black" align="left" noshade size="2" width="80%">
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                      November 30, 2006</font></div>
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                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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                  </td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td width="40%">
                  </td>
                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="40%">&#160;</td>
                </tr>

            </table>
          </div>
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      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong>EXHIBIT
      INDEX</strong></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><br>
        <div align="center">
          <table cellpadding="0" cellspacing="0" width="75%">

              <tr>
                <td align="left" valign="top" width="23%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Item
                    Number</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</font></div>
                </td>
                <td align="left" valign="top" width="49%" style="border-bottom: medium none;">
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                    &#160;&#160;&#160;&#160; <u>Description of Exhibits</u></font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="23%">
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                    of Stark Winter Schenkein &amp; Co., LLP. </font></div>
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                    23.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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                    of Dufford &amp; Brown, P.C. (included in Exhibit
                    5).</font></div>
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[{"type": "S-8", "sequence": "1", "filename": "goldress8_11302006.htm", "description": "GOLD RESOURCES FORM S-8", "secsgml_size_bytes": 297099}]
{"company-data": {"conformed-name": "GOLD RESOURCE CORP", "cik": "0001160791", "assigned-sic": "1040", "irs-number": "841473173", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-139051", "film-number": "061249363"}, "business-address": {"street1": "222 MILWAUKEE ST", "street2": "SUITE 301", "city": "DENVER", "state": "CO", "zip": "80206", "phone": "303-320-7708"}, "mail-address": {"street1": "222 MILWAUKEE STREET", "street2": "SUITE 301", "city": "DENVER", "state": "CO", "zip": "80206"}}
As
      filed
      with the Securities and Exchange Commission on December 1 ,
      2006
SEC
      File
      No. ____________
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      S-8
Registration
      Statement
Under
      the
      Securities Act of 1933
GOLD
      RESOURCE CORPORATION
(Exact
      name of registrant as specified in its charter)
Colorado
84-1473173
(State
      or
      other jurisdiction of
(I.R.S.
      Employer
incorporation
      or organization)
Identification
      No.)
222
      Milwaukee Street, Suite 301, Denver, Colorado 80206
(303)
      320-7708
(Address
      of Principal Executive Offices and Zip Code)
GOLD
      RESOURCE CORPORATION
NON-QUALIFIED
      STOCK OPTION AND STOCK GRANT PLAN
(Full
      title of the plan)
____________
William
      W. Reid, President
Gold
      Resource Corporation
222
      Milwaukee Street, Denver, Colorado 80206
(303)
      320-7708
(Name,
      address and telephone number of agent for service)
____________
With
      a copy to:
David
      J. Babiarz, Esq.
Jessica
      M. Browne, Esq.
Dufford
      & Brown, P.C.
1700
      Broadway, Suite 2100
Denver,
      Colorado 80290-2101
(303)
      861-8013
Approximate
      date of commencement of proposed sale to public: This Registration Statement
      shall become effective immediately upon filing as provided in Rule 462 under
      the
      Securities Act of 1933.
If
      any of
      the securities being registered on this form are to be offered on a delayed
      or continuous basis pursuant to Rule 415 under the Securities Act of 1933,
      other than securities offered only in connection with dividend or interest
      reinvestment plans, check the following box. [X]
Calculation
      of Registration Fee
Title
                of each class of securities to be registered
Proposed
                maximum amount to be registered
Proposed
                maximum offering price per unit
(1)
Amount
                of aggregate offering price
Total
                registration fee
Common
                Stock, $0.001 par value
6,000,000
$1.625
$9,750,000
$1043.25
_________________
(1)
Calculated
      in accordance with Rule 457(c) and (h) of the regulations promulgated under
      the
      Securities Act of 1933.
EXPLANATORY
      NOTE
This
      registration statement is being filed to register 6,000,000 shares of common
      stock, $0.001 par value, of Gold Resource Corporation authorized under the
      Gold
      Resource Corporation Non-Qualified Stock Option and Stock Grant Plan (the
"Plan") and includes a reoffer prospectus prepared in accordance with General
      Instruction C to Form S-8 and Part I of Form S-3, which may be used for the
      offer and sale of securities registered hereunder by certain officers and
      directors of Gold Resource Corporation who may be deemed to be "affiliates" of
      Gold Resource Corporation as that term is defined in Rule 405 under the
      Securities Act of 1933. The reoffer prospectus also includes restricted
      securities received prior to the filing of this registration statement under
      the
      Plan by a shareholder who is not an "affiliate." The amount of shares to be
      offered or resold by means of the reoffer prospectus contained herein by each
      selling shareholder (and any other person with whom such selling shareholder
      is
      acting in concert for the purpose of selling such shares), may not exceed,
      during any three-month period, the amount specified in Rule 144(e) of the
      Securities Act.
PART
      I
INFORMATION
      REQUIRED IN THE SECTION 10(a) PROSPECTUS
The
      documents containing the information specified in Part I, Items 1 and 2 of
      Form
      S-8, will be sent or given to any recipient of a stock option or stock award
      in
      accordance with Form S-8 and Rule 428(b)(1) of the Securities Act. Such
      documents are not required to be and are not filed with the Securities and
      Exchange Commission either as part of this Registration Statement or as
      prospectuses or prospectus supplements pursuant to Rule 424. These documents
      and
      the documents incorporated by reference in this Registration Statement pursuant
      to Item 3 of Part II of this Form S-8, taken together, constitute a prospectus
      that meets the requirements of Section 10(a) of the Securities Act. The reoffer
      prospectus follows this paragraph.
2
R
      E O F F E R     P R O S P E C T U
      S
GOLD
      RESOURCE CORPORATION
2,240,000
      shares of Common Stock,
$0.001
      par value
This
      prospectus relates to 2,240,000 shares of common stock, $0.001 par value per
      share, which may be offered from time to time by the selling shareholders
      identified in this prospectus under the heading "
SELLING
      SHAREHOLDERS
."
Gold
      Resource Corporation (hereinafter referred to as "Gold Resource," "we," "our" or
"us") will not receive the proceeds from the sale of the shares. The shares may
      be offered by the selling shareholders from time to time: (i) in transactions
      in
      the over the counter market, on an automated inter-dealer system or national
      securities exchange on which shares of our common stock may be listed, in
      negotiated transactions, or a combination of such methods; and (ii) at market
      prices prevailing at the time of sale, or at prices related to such prevailing
      market prices, or at negotiated prices. The selling shareholders may effect
      these transactions by selling the shares to or through securities
      broker-dealers. Such broker-dealers may receive compensation in the form of
      discounts, concessions, or commissions from the selling shareholders and/or
      the
      purchasers of the shares for whom broker-dealers may act as agent or to whom
      they sell as principal, or both (which compensation as to a particular
      broker-dealer might be in excess of customary commissions). See "
SELLING
      SHAREHOLDERS
"
and
      "
PLAN
      OF DISTRIBUTION
"
in
      this
      prospectus. Selling shareholders may also sell such shares pursuant to Rule
      144
      under the Securities Act of 1933, as amended ("Securities Act") if the
      requirements for the availability of such rule have been satisfied.
Of
      the
      total shares included in this prospectus, 2,000,000 are defined as "control
      securities" under the Securities Act. Of those 2,000,000 shares, 1,900,000
      shares will be issued to the selling shareholders upon exercise of options
      granted to them under our Non-Qualified Stock Option and Stock Grant Plan (the
      "Plan") and 100,000 shares were issued to a director as a stock grant award. The
      remaining 240,000 shares included in this prospectus are "restricted securities"
as defined in the Securities Act and are held by a selling shareholder who
      exercised options under the Plan prior to the filing of the registration
      statement of which this prospectus forms a part. This prospectus has been
      prepared for the purposes of registering the shares under the Securities Act
      to
      allow for future sales to the public by selling shareholders on a delayed or
      continuous basis without restriction.
We
      have
      agreed to bear all expenses (other than underwriting discounts, selling
      commissions, and underwriter expense allowance, and fees and expenses of counsel
      and other advisers to the selling shareholders) in connection with the
      registration and sale of the shares being offered by the selling shareholders.
Effective
      September 14, 2006 our common stock began trading in the over the counter market
      and quoted on the Bulletin Board maintained by the National Association of
      Securities Dealers (the "OTCBB") under the symbol "GORO." On November
      30
,
      2006,
      the last reported sale price of our common stock was $
1.62
per
      share.
3
These
      securities are speculative and involve a high degree of risk. See Risk Factors
      beginning at page 7.
Since
      we do not currently meet the registrant requirements for use of Form S-3, the
      amount of common stock which may be resold by means of this prospectus by each
      of the selling shareholders, and any other person with whom he or she is acting
      in concert for the purpose of selling securities of our company must not exceed,
      in any three-month period, the amount specified in Rule 144(e) promulgated
      under
      the Securities Act.
Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved or disapproved of these securities or passed upon the adequacy or
      accuracy of the prospectus. Any representation to the contrary is a criminal
      offense.
The
      date
      of this prospectus is December 1, 2006
4
ADDITIONAL
      AVAILABLE INFORMATION
The
      registration statement (including any post-effective amendments) that contains
      this prospectus, including the exhibits to the registration statement, contains
      additional information about us and the securities the selling shareholders
      may
      offer under this prospectus.
The
      public may read and copy any materials we file with the Securities and Exchange
      Commission (the "SEC") at the SEC's Public Reference Room at 100 F Street, N.E,
      Washington, DC 20549. The public may obtain more information on the operation
      of
      the Public Reference Room by calling 1-800-SEC-0330. The SEC maintains an
      Internet site that contains reports, proxy and information statements, and
      other
      information regarding issuers that file electronically with the SEC at
http://www.sec.gov
.
DOCUMENTS
      INCORPORATED BY REFERENCE
We
      will
      provide, without charge, to each person to whom a copy of this prospectus is
      delivered, including any beneficial owner of securities, upon the written or
      oral request of such person, a copy of any or all of the documents incorporated
      by reference herein (other than exhibits to such documents, unless such exhibits
      are specifically incorporated by reference into the information that the
      prospectus incorporates). Requests should be directed to:
Gold
      Resource Corporation
222
      Milwaukee Street, Suite 301
Denver,
      Colorado 80206
Telephone
      number: (303) 320-7708
Attention:
      William W. Reid, President
The following documents filed with the SEC (File Number 333-129321) are hereby
      incorporated by reference into this prospectus:
1.
Our
      prospectus filed pursuant to Rule 424(b)(3) dated May 15, 2006;
2.
Our
      Quarterly Report on Form 10-QSB/A for the quarter ended March 31,
      2006;
3.
Our
      Current Report on Form 8-K dated June 20, 2006;
4.
Our
      Quarterly Report on Form 10-QSB for the quarter ended June 30, 2006;
5.
Our
      Current Report on Form 8-K dated September 19, 2006; and
6.
Our
      Quarterly Report on Form 10-QSB for the quarter ended September 30,
      2006.
All documents filed by us with the SEC pursuant to Sections 13(a), 13(c), 14,
      or
      15(d) of the Securities Exchange Act of 1934, as amended, subsequent to the
      date
      of this prospectus and prior to the termination of the offering registered
      hereby shall be deemed to be incorporated by reference into this prospectus
      and
      to be a part hereof from the date of the filing of such documents. Any statement
      contained in a document incorporated or deemed to be incorporated by reference
      herein shall be deemed to be modified or superseded for purposes of this
      prospectus to the extent that a statement contained herein or in any
      subsequently filed document which also is or is deemed to be incorporated by
      reference herein modifies or supersedes such statement. Such statement so
      modified or superseded shall not be deemed, except as so modified or superseded,
      to constitute a part of this prospectus.
5
SUMMARY
The
      following information summarizes information found in this prospectus and the
      documents incorporated by reference in this prospectus. It does not contain
      all
      of the information you should consider before investing in our common stock.
      You
      should read the entire prospectus carefully, including the sections entitled
      "
RISK
      FACTORS
"
and
      "
DOCUMENTS
      INCORPORATED BY REFERENCE
."
About
      the Company
We
      are an
      exploration stage company organized in Colorado on August 24, 1998 to search
      for
      gold and silver. We currently have an interest in two properties located in
      Mexico, one known as the
El
      Aguila
project
      and one known as the
El
      Rey
project.
      In October 2002, we leased some mineral claims in the State of Oaxaca, Mexico,
      designated the
El
      Aguila
project.
      These claims cover approximately 1,896 hectares (4,685 acres) and are located
      in
      the historic
San
      Jose de Gracia
mining
      district in the State of Oaxaca. The
El
      Aguila
project
      is an exploration property in which we lease a 100% interest. Since acquiring
      that interest, we have drilled approximately 6,700 meters (21,981 feet) of
      test
      holes in one section of the property and have encountered gold and silver
      mineralized material. We are continuing our exploration efforts on this
      property.
In
      2005,
      we obtained some additional mineral claims in the Mexican State of Oaxaca which
      we call the
El
      Rey
project.
      The
El
      Rey
project
      is an exploration stage property in which we acquired mineral claims by filing
      mineral concessions with the Mexican government. We have conducted very limited
      exploration of this property to date.
We
      are an
      exploration stage company, and there is no assurance that a commercially viable
      mineral deposit exists on either of our properties. Additional exploration
      will
      be required before a final evaluation as to the economic and legal feasibility
      is determined. There is no assurance that the proceeds of this offering will
      be
      successful to complete necessary exploration, evaluation and feasibility
      studies.
In
      August
      2006, we completed our initial public offering. We sold 4,600,000 shares of
      our
      common stock for cash proceeds of $4,351,200 (net of finders' fees of $248,800).
      Effective September 14, 2006, our common stock began trading on the OTCBB under
      the symbol "GORO."
Our
      operations in Mexico are conducted through our wholly-owned Mexican
      subsidiaries, Don David Gold, S.A. de C.V. and Golden Trump S.A. de C.V. All
      references to us or our company in this prospectus include our subsidiaries.
Our
      principal executive offices are located at 222 Milwaukee Street, Suite 301,
      Denver, Colorado 80206, and our telephone number is (303) 320-7708.
Summary
      Financial Data
The
      following table presents certain selected historical consolidated financial
      data
      about our company. Historical consolidated financial information as of and
      for
      the year ended December 31, 2005 and 2004 has been derived from our
      consolidated financial statements, which have been audited by Stark Winter
      Schenkein & Co., LLP, our independent registered public accounting
      firm. Historical consolidated financial information as of and for the nine
      months ended September 30, 2006 and 2005 have been derived from our
      unaudited consolidated financial statements.
6
You
      should read the data set forth below in conjunction with our financial
      statements and related notes incorporated by reference in this
      prospectus.
Balance Sheet Data
September
                30,
December 31,
2006
2005
(unaudited)
Cash
                and Cash Equivalents
$
3,298,609
$
176,182
Total
                Assets
3,342,279
246,980
Current
                Liabilities
290,519
33,607
Total
                Liabilities
290,519
33,607
Shareholders'
                Equity
3,051,760
213,373
Operating Data
Nine
                months ended
September
                30,
Year ended
December 31,
2006
2005
2005
2004
(unaudited)
Other
                Revenue
$
7,954
$
3,311
$
6,174
$
113
General
                and Administrative Expenses
781,090
103,142
286,219
27,732
Stock
                Compensation
516,350
87,500
87,500
500,000
Property
                Acquisition Related Costs
100,000
95,796
103,548
68,591
Exploration
                Costs
361,735
393,783
739,570
257,383
Net
                Comprehensive (Loss)
(1,764,163
)
(680,662
)
(1,217,711
)
(853,666
)
Net
                (Loss) per Share
$
(0.09
)
$
(0.04
)
$
(0.08
)
$
(0.08
)
RISK
      FACTORS
Investment
      in our common stock involves a high degree of risk and could result in a loss
      of
      your entire investment. Prior to making an investment decision, you should
      carefully consider all of the information in this prospectus and, in particular,
      you should evaluate the risk factors set forth below. Additional risks and
      uncertainties not currently known to us or that we currently deem to be
      immaterial may also impair our business operations. If we are unable to prevent
      events that have a negative effect from occurring, then our business may
      suffer.
Risk
      Relating to Our Company
Since
      we are a new business with no operating history, investors have no basis to
      evaluate our ability to operate profitably.
We
      were
      organized in 1998 but have had no revenue from operations since our inception.
      Our activities to date have been limited to organizational efforts, raising
      financing, acquiring mining properties and conducting limited exploration.
      We
      face all of the risks commonly encountered by other new businesses, including
      the lack of an established operating history, need for additional capital and
      personnel, and intense competition. There is no assurance our business plan
      will
      be successful.
The
      report of our independent accountants on our financial statements for the year
      ended December 31, 2005 includes a "going concern" qualification, meaning
      that there is substantial doubt about our ability to continue in
      operation.
The
      report cited the following factors in support of our accountant's conclusion:
      (i) the substantial losses we incurred for the years ended December 31, 2005
      and
      2004; (ii) our lack of operating revenue; and (iii) our dependence on sale
      of equity securities and receipt of capital from outside sources to continue
      in
      operation. From inception to September 30, 2006, we have accumulated a loss
      of
      $5,673,478. If we are unable to obtain additional financing or eventually
      produce revenue, we may be forced to sell our assets, curtail or cease
      operations. In any event, investors in our common stock could lose all or part
      of their investment.
7
The
      probability of an individual prospect having reserves is extremely remote.
      Therefore, in all likelihood, our properties do not contain any reserves, and
      any funds spent by us on exploration will probably be
      lost.
A
"reserve," as defined by regulation of the SEC, is that part of a mineral
      deposit which could be economically and legally extracted or produced at the
      time of the reserve determination. Statistically, most mineral prospects do
      not
      contain reserves which can be economically extracted. For this reason, it is
      unlikely that our properties contain any reserves. The funds we have spent
      on
      exploration, as well as funds which we might spend in the future, will probably
      be lost.
We
      are dependent upon receipt of additional working capital to fund our business
      plan.
We
      may
      require additional capital for exploration of one or both of our existing
      properties, or acquisition of additional properties. If our exploration program
      proves successful, we will require significant additional capital to fund
      development of the
El
      Aguila
project
      and to construct a mill in order to place it into production. In addition,
      we
      will require additional working capital to fund operations pending sale of
      any
      gold or other precious metals. While we completed our initial public offering
      on
      August 17, 2006 for net proceeds of $4,351,200, we have allocated approximately
      $3 million for future exploration costs and anticipate we will need to obtain
      additional financing from outside sources within the next 12 months in order
      to
      continue to fund our business needs.
We
      have no proved or probable reserves, meaning there is no assurance that we
      can
      economically produce gold or other precious minerals from our properties.
In
      order
      to demonstrate the availability of proved or probable reserves, it will first
      be
      necessary for us to continue exploration to demonstrate the availability of
      sufficient mineralized material. Exploration is inherently risky, with few
      properties ultimately proving economically successful. If our exploration
      efforts are successful, it will then be necessary for us to engage an outside
      engineering firm to assess geological and other data and develop an economic
      model demonstrating commercial feasibility of the property. This feasibility
      study will require significant additional time and investment. There is no
      assurance we can economically produce gold or other precious metals from our
      properties.
At
      the present time, we are totally dependent upon production of gold or other
      precious metals from two properties, raising the risk if either or both of
      those
      properties should prove unproductive.
Since we
      have never produced gold or other precious metals from either of our properties,
      and since we have no proved or probable reserves, there is no assurance that
      gold or other precious metals can be economically produced under existing and
      future costs and expenses. If we are unable to economically produce gold from
      either or both of these properties, we would be forced to identify and invest
      substantial sums in one or more additional properties, and there is no assurance
      that such properties would be available on terms favorable to us.
Our
      properties are located in Mexico and are subject to changes in political
      conditions and regulations in that country.
Our
      existing properties are located in Mexico. In the past, Mexico has been subject
      to political instability, changes and uncertainties which may cause changes
      to
      existing government regulations affecting mineral exploration and mining
      activities. Civil or political unrest could disrupt our operations at any time.
      Our mineral exploration and mining activities in Mexico may be adversely
      affected in varying degrees by changing governmental regulations relating to
      the
      mining industry or shifts in political conditions that increase the costs
      related to our activities or maintaining our properties. Finally, Mexico's
      status as a developing country may make it more difficult for us to obtain
      required financing for our project.
8
Our
      business operations may be adversely affected by social and political unrest
      in
      Oaxaca.
The
      property which we are currently exploring for mineralization is located in
      the
      State of Oaxaca, Mexico.  Oaxaca City, the capital of the State of Oaxaca,
      is currently experiencing escalating social and political unrest. Certain
      civilian groups seeking political reform have staged protests and
      demonstrations around various locations in Oaxaca City, including schools,
      government offices and major roadways and violence in the area is increasing.
      Although our property is located roughly one and one half hour's drive from
      Oaxaca City, these events may still negatively impact our business
      operations.  Our exploration program may be interrupted if we are unable to
      hire qualified personnel or if we are denied access to the site where our
      property is located. We may also be required to make additional expenditures
      to
      provide increased security in order to protect property or personnel located
      at
      our exploration site. Significant delays in exploration or increases in
      expenditures will likely have a material adverse affect on our financial
      condition and results of operations.
Our
      ability to continue exploration and extract any minerals that we discover is
      subject to payment of concession fees and royalties and if we fail to satisfy
      these requirements, we may lose our interest in the
      properties.
Mining
      concessions in Mexico are subject to payment of concession fees to the federal
      government or lease payments to the owner of the concessions. Additionally,
      our
      lease for the
El
      Aguila
project
      is subject to a net smelter return royalty of
4%
      where
      production is sold in the form of gold/silver dor
é
and
5% where
      production is sold in concentrate form. Our failure or inability to pay the
      concession fees to the government may cause us to lose our interest in one
      or
      both of our properties. The requirement to pay royalties to the owner of the
      lease at our
El
      Aguila
property
      will reduce our profitability if we commence commercial production of gold
      or
      other precious metals.
Our
      ability to develop our property, even if warranted by exploration results,
      is
      subject to the rights of the Ejido (local inhabitants) to surface use for
      agricultural purposes.
If
      we are
      successful in discovering sufficient amounts of mineralized material to warrant
      production, our ability to mine minerals is subject to making satisfactory
      arrangements with the
Ejido
for
      access and surface disturbances.
Ejidos
are
      groups of local inhabitants who were granted rights to conduct agricultural
      activities on the property. We must negotiate a satisfactory arrangement with
      these inhabitants in order to disturb or discontinue their rights to farm.
      Our
      inability to successfully negotiate such agreements could impair or impede
      our
      ability to successfully mine the properties.
The
      volatility of the price of gold could adversely affect our future operations
      and, if warranted, our ability to develop our properties.
The
      commercial feasibility of our properties and our ability to raise funding to
      conduct continued exploration and development if warranted, is dependent on
      the
      price of gold and other precious metals. The price of gold may also have a
      significant influence on the market price of our common stock and the value
      of
      our properties. Our decision to put a mine into production and to commit the
      funds necessary for that purpose must be made long before the first revenue
      from
      production would be received. A decrease in the price of gold may prevent our
      property from being economically mined or result in the writeoff of assets
      whose
      value is impaired as a result of lower gold prices. The price of gold is
      affected by numerous factors beyond our control, including inflation,
      fluctuation of the United States Dollar and foreign currencies, global and
      regional demand, the sale of gold by central banks, and the political and
      economic conditions of major gold producing countries throughout the world.
      During the last five years, the average annual market price of gold has
      fluctuated between $271 per ounce and $445 per ounce, as shown in the table
      below. Although it is possible for us to protect some price fluctuations by
      hedging in certain circumstances, the volatility of mineral prices represents
      a
      substantial risk, which no amount of planning or technical expertise can
      eliminate.
2001
2002
2003
2004
2005
$271
$310
$364
$406
$445
9
Competition
      in the mining industry is intense, and we have limited financial and personnel
      resources with which to compete.
Competition in the mining industry for desirable properties, investment capital
      and personnel is intense. Numerous companies headquartered in the United States,
      Canada and elsewhere throughout the world compete for properties on a global
      basis. We are an insignificant participant in the gold mining industry due
      to
      our limited financial and personnel resources. We may be unable to attract
      the
      necessary investment capital to fully explore and if warranted, develop our
      properties and unable to acquire other desirable properties.
An
      adequate supply of water may not be available to complete desired development
      of
      our property.
If we
      make a discovery sufficient enough to warrant putting our property into
      production, we will require additional amounts of water for our operations.
      We
      would be required to pump water from the Totolapam River to any facility we
      may
      construct on our property. Water rights are owned by the Mexican nation and
      administered by the
Comision
      Nacional de Agua
("CNA"),
      an agency of the Mexican government. The CNA has granted water concessions
      to
      private parties throughout the area defined as the Oaxaca Hydrologic Basin,
      however, there is no assurance that we will be granted such concessions.
      Accordingly, we may not have access to the amount of water needed to operate
      a
      mine at the property.
Since
      most of our expenses are paid in Mexican pesos, and we anticipate selling any
      production from our properties in United States dollars, we are subject to
      adverse changes in currency values that will be difficult to prevent.
Our
      operations in the future could be affected by changes in the value of the
      Mexican peso against the United States dollar. At the present time, since we
      have no production, we have no plans or policies to utilize forward sales
      contracts or currency options to minimize this exposure. If and when these
      measures are implemented, there is no assurance they will be cost effective
      or
      be able to fully offset the effect of any currency fluctuations.
Our
      activities in Mexico are subject to significant environmental regulations,
      which
      could raise the cost of doing business.
Mining
      operations are subject to environmental regulation by SEMARNAT, the
      environmental protection agency of Mexico. Regulations require that an
      environmental impact statement, known in Mexico as a
Manifiestacion
      de Impacto Ambiental
,
      be
      prepared by a third party contractor for submission to SEMARNAT. Studies
      required to support this impact statement include a detailed analysis of many
      subject areas, including soil, water, vegetation, wildlife, cultural resources
      and socio-economic impacts. We may also be required to submit proof of local
      community support for a project to obtain final approval. Significant
      environmental legislation exists in Mexico, including fines and penalties for
      spills, release of emissions into the air, seepage and other environmental
      damage.
The
      nature of mineral exploration and production activities involves a high degree
      of risk and the possibility of uninsured losses.
Exploration
      for minerals is highly speculative and involves greater risk than many other
      businesses. Our operations are subject to all of the operating hazards and
      risks
      normally incident to exploring for mineral properties, such as, but not limited
      to:
•
encountering
                unusual or unexpected formations;
•
environmental
                pollution;
•
personal
                injury, flooding and landslides;
•
variations
                in grades of ore;
•
labor
                disputes; and
•
decrease
                in value of reserves due to a lower gold
                price.
We
      currently have no insurance to guard against any of these risks. If we determine
      that capitalized costs associated with any of our mineral interests are not
      likely to be recovered, we would incur a writedown on our investment in such
      property interest. All of these factors may result in losses in relation to
      amounts spent which are not recoverable.
10
If
      we
      lose any of our existing employees or consultants, there is no assurance that
      we
      would find a suitable replacement on acceptable terms.
If either
      of our current employees or our principal consultant in Mexico were to die,
      become disabled or leave the company, we would be forced to identify and retain
      individuals to replace them. Messrs. William and David Reid are our only
      employees at this time. Jose Perez Reynoso is our consultant in Mexico who
      oversees our properties and operations. There is no assurance that we can find
      suitable individuals to replace them or to add to our employee base if that
      becomes necessary. We are entirely dependent on these individuals as our only
      personnel at this time. We have no life insurance on any individual at this
      time, and we may be unable to hire a suitable replacement for them on favorable
      terms, should that become necessary.
In
      the event of a dispute regarding title to our property or any facet of our
      operations, it will likely be necessary for us to resolve the dispute in Mexico,
      where we would be faced with unfamiliar laws and procedures.
The
      resolution of disputes in foreign countries can be costly and time consuming,
      similar to the situation in the United States. However, in a foreign country,
      we
      face the additional burden of understanding unfamiliar laws and procedures.
      We
      may not be entitled to a jury trial, as we might be in the United States.
      Further, to litigate in any foreign country, we would be faced with the
      necessity of hiring lawyers and other professionals who are familiar with the
      foreign laws. For these reasons, we may incur unforeseen losses if we are forced
      to resolve a dispute in Mexico or any other foreign country.
While
      we believe we have adequate internal controls over financial reporting, we
      will
      be required to evaluate our internal controls under Section 404 of the
      Sarbanes-Oxley Act of 2002 and any adverse results from such evaluation could
      result in a loss of investor confidence in our financial reports and have a
      material adverse effect on the price of our common stock.
Pursuant
      to Section 404 of the Sarbanes-Oxley Act of 2002, we expect that we will be
      required to furnish a report by our management on internal controls for the
      fiscal year ending December 2007. Such a report must contain, among other
      matters, an assessment of the effectiveness of our internal controls over
      financial reporting, including a statement as to whether or not our internal
      controls are effective. This assessment must include disclosure of any material
      weaknesses in our internal controls over financial reporting identified by
      our
      management. Such a report must also contain a statement that our auditors have
      issued an attestation report on our management's assessment of such internal
      controls. While we believe our internal controls over financial reporting are
      effective, we are still constructing the system, processing documentation and
      performing the evaluations needed to comply with Section 404, which is both
      costly and challenging. We may not be able to complete our evaluation, testing
      and any required remediation in a timely fashion. If we are unable to assert
      that our internal controls over financial reporting are effective, or if we
      disclose significant deficiencies or material weaknesses in our internal
      controls, investors could lose confidence in the accuracy and completeness
      of
      our financial reports, which would have a material adverse effect on our stock
      price.
The
      laws of the State of Colorado and our Articles of Incorporation may protect
      our
      directors from certain types of lawsuits.
The
      laws
      of the State of Colorado provide that our directors will not be liable to us
      or
      our shareholders for monetary damages for all but certain types of conduct
      as
      directors of the company. Our Articles of Incorporation permit us to indemnify
      our directors and officers against all damages incurred in connection with
      our
      business to the fullest extent provided or allowed by law. The exculpation
      provisions may have the effect of preventing shareholders from recovering
      damages against our directors caused by their negligence, poor judgment or
      other
      circumstances. The indemnification provisions may require us to use our limited
      assets to defend our directors and officers against claims, including claims
      arising out of their negligence, poor judgment, or other
      circumstances.
11
Risks
      Relating to Our Common Stock
The
      sale of a substantial number of shares of our common stock may cause the price
      of our common stock to decline.
In
      addition to the 2,240,000 shares of common stock that may be offered by the
      selling shareholders from time to time under this prospectus, we filed a
      registration statement with the SEC that was declared effective on May 15,
      2006
      to qualify the resale of approximately 8.9 million shares of common stock from
      time to time. Additionally, a large number of shares of our common stock will
      become eligible for sale in the future under Rule 144. Under Rule 144, and
      under
      certain circumstances, an owner is permitted to sell every three months the
      greater of: (i) 1% of the amount of our outstanding common stock, or (ii) the
      average weekly trading volume of our common stock for the four weeks preceding
      the sale. It is likely that market sales of large amounts of common stock (or
      the potential for those sales even if they do not actually occur) may cause
      the
      market price of our common stock to decline, which may make it difficult to
      sell
      our common stock in the future at a time and price which we deem reasonable
      or
      appropriate and may also cause you to lose all or a part of your
      investment.
The
      sale of our common stock by the selling shareholders may depress the price
      of
      our common stock due to the limited trading market which
      exists.
Due to a
      number of factors, including the lack of listing of our common stock on a
      national securities exchange, the trading volume in our common stock is limited.
      Since we were approved for trading on the OTCBB on September 14, 2006, our
      trading volume has averaged approximately
60,000
shares
      per day. As a result, the sale of a significant amount of common stock by the
      selling shareholders may depress the price of our common stock. As a result,
      you
      may lose all or a portion of your investment.
A
      small number of existing shareholders own a significant amount of our common
      stock, which could limit your ability to influence the outcome of any
      shareholder vote.
Our
      executive officers and directors, beneficially own approximately
40
%
      of our
      common stock as of the date of this prospectus
.
      Under
      our Articles of Incorporation and Colorado law, the vote of a majority of the
      shares outstanding is generally required to approve most shareholder action.
      As
      a result, these individuals will be able to influence the outcome of
      shareholder votes for the foreseeable future, including votes concerning the
      election of directors, amendments to our Articles of Incorporation or proposed
      mergers or other significant corporate transactions. We have no existing
      agreements or plans for mergers or other corporate transactions that would
      require a shareholder vote at this time. However, shareholders should be aware
      that they may have limited ability to influence the outcome of any vote in
      the
      future.
Since
      our common stock is not presently quoted on Nasdaq or listed on a stock
      exchange, trading in our shares will likely be subject to rules governing "penny
      stocks," which will impair trading activity in our shares.
Our
      common stock may be subject to rules adopted by the SEC regulating broker-dealer
      practices in connection with transactions in penny stocks. Those disclosure
      rules applicable to penny stocks require a broker-dealer, prior to a transaction
      in a penny stock not otherwise exempt from the rules, to deliver a standardized
      disclosure document required by the SEC. These rules also require a cooling
      off
      period before the transaction can be finalized. These requirements may have
      the
      effect of reducing the level of trading activity in any secondary market for
      our
      common stock. Many brokers may be unwilling to engage in transactions in our
      common stock because of the added disclosure requirements, thereby making it
      more difficult for stockholders to dispose of their shares.
12
A
      contract right allowing one of our largest shareholders the first opportunity
      to
      purchase any common stock offered by us in the future may result in a change
      in
      control.
Under
      the terms of an agreement entered into with one of our largest shareholders,
      we
      are obligated to offer this entity the first right to purchase our common stock
      in any future offering until August 2008. The holder of this right is Heemskirk
      Consolidated Limited ("Heemskirk"). If Heemskirk exercises this right in
      connection with any future offering of our common stock, the percentage interest
      in our company owned by it could increase. This may result in a change in
      control and could allow Heemskirk the ability to influence the management or
      policies of our company. For example, if Heemskirk acquires enough stock to
      become the holder of a majority of our outstanding voting stock, it could elect
      the entire Board of Directors. Even if it does not acquire an absolute majority
      of our stock but increases its voting interest in the company, it could wage
      a
      proxy battle and influence who our Board of Directors nominates as directors
      in
      the future. These and other events could have the effect of changing the way
      that our company is operated.
Our stock price may be volatile and as a result you could lose all or part
      of
      your investment
.
      In
      addition to volatility associated with over the counter securities in
      general, the value of your investment could decline due to the impact of any
      of
      the following factors upon the market price of our common stock:
·
Changes
      in the worldwide price for gold;
·
Disappointing
      results from our exploration efforts;
·
Failure
      to meet our revenue or profit goals or operating budget;
·
Decline
      in demand for our common stock;
·
Downward
      revisions in securities analysts' estimates or changes in general market
      conditions;
·
Technological
      innovations by competitors or in competing technologies;
·
Investor
      perception of our industry or our prospects; and
·
General
      economic trends
In
      addition, stock markets have experienced extreme price and volume fluctuations
      and the market prices of securities have been highly volatile. These
      fluctuations are often unrelated to operating performance and may adversely
      affect the market price of our common stock. As a result, investors may be
      unable to resell their shares at a fair price.
Issuances
      of our stock in the future could dilute existing shareholders and adversely
      affect the market price of our common stock, if a public trading market
      develops
.
      We have
      the authority to issue up to 60,000,000 shares of common stock, 5,000,000 shares
      of preferred stock, and to issue options and warrants to purchase shares of
      our
      common stock without stockholder approval. Because our common stock is not
      currently quoted in Nasdaq or listed on an exchange, we are not required to
      solicit shareholder approval prior to issuing large blocks of our stock. These
      future issuances could be at values substantially below the price paid for
      our
      common stock by our current shareholders. In addition, we could issue large
      blocks of our common stock to fend off unwanted tender offers or hostile
      takeovers without further stockholder approval. Because trading in our common
      stock is limited, the issuance of our stock may have a disproportionately large
      impact on its price compared to larger companies.
We
      have never paid dividends on our common stock and we do not anticipate paying
      any in the foreseeable future.
We have
      not paid dividends on our common stock to date, and we may not be in a position
      to pay dividends for the foreseeable future. Our ability to pay dividends will
      depend on our ability to successfully develop one or more properties and
      generate revenue from operations. Further, our initial earnings, if any, will
      likely be retained to finance our operations. Any future dividends will depend
      upon our earnings, our then-existing financial requirements and other factors,
      and will be at the discretion of our Board of Directors.
13
FORWARD-LOOKING
      STATEMENTS
This
      prospectus contains or incorporates by reference forward-looking statements
      within the meaning of the United States Private Securities Litigation Reform
      Act
      of 1995 concerning our future business plans and strategies, the proposed
      exploration and development of our property, the receipt of working capital,
      future revenues and other statements that are not historical in nature. In
      this
      prospectus, forward-looking statements are often identified by the words
"anticipate," "plan," "believe," "expect," "estimate," and the like. These
      forward-looking statements reflect our current beliefs, expectations and
      opinions with respect to future events, and involve future risks and
      uncertainties which could cause actual results to differ materially from those
      expressed or implied.
In
      addition to the specific factors identified under "
RISK
      FACTORS
"
above,
      other uncertainties that could affect the accuracy of forward-looking statements
      include:
•
decisions
      of foreign countries and banks within those countries;
•
technological
      changes in the mining industry;
•
our
      costs;
•
the
      level
      of demand for our products;
•
changes
      in our business strategy;
•
interpretation
      of drill hole results and the geology, grade and continuity of
      mineralization;
•
the
      uncertainty of reserve estimates and timing of development expenditures;
      and
•
commodity
      price fluctuations.
This
      list, together with the factors identified under "
RISK
      FACTORS
,"
is
      not
      exhaustive of the factors that may affect any of our forward-looking statements.
      You should read this prospectus completely and with the understanding that
      our
      actual future results may be materially different from what we expect. These
      forward-looking statements represent our beliefs, expectations and opinions
      only
      as of the date of this prospectus. We do not intend to update these forward
      looking statements except as required by law. We qualify all of our
      forward-looking statements by these cautionary statements.
Prospective
      investors are urged not to put undue reliance on forward-looking
      statements.
USE
      OF PROCEEDS
We
      will
      not receive any proceeds from the sale by the selling shareholders of shares
      of
      common stock pursuant to this prospectus. Of the total amount of shares which
      may be offered pursuant to this prospectus, 1,900,000 shares underlie stock
      options granted under our Plan. We will receive proceeds from the exercise
      of
      these outstanding stock options upon their exercise based on the exercise price
      of the options, of which 1,400,000 options may be exercised for $0.25 per share
      and 500,000 options may be exercised for $1.00 per share. If all stock options
      were exercised, we would receive aggregate proceeds of $850,000. All proceeds,
      if any, from the exercise of these options will be added to our working capital.
SELLING
      SHAREHOLDERS
The
      selling shareholders named in this prospectus are offering all of the 2,240,000
      shares offered through this prospectus. The shares offered by the selling
      shareholders consist of 1,900,000 shares which may be issued upon exercise
      of
      outstanding stock options and 340,000 shares of common stock that are currently
      outstanding and that may be sold from time to time.
The
      following table provides, as of November 30, 2006, information regarding the
      beneficial ownership of our common stock held by each of the selling
      shareholders, including:
14
1.
      the
      number of shares owned by each selling shareholder prior to this
      offering;
2.
      the
      total number of shares that are to be offered by each selling shareholder;
3.
      the
      total number of shares that will be owned by each selling shareholder upon
      completion of the offering; and
4.
      the
      percentage of shares owned by each selling shareholder upon completion of the
      offering.
Information
      with respect to beneficial ownership is based upon information obtained from
      the
      selling shareholders. Information with respect to "Number of Shares Beneficially
      Owned Prior to the Offering" includes the shares issuable upon exercise of the
      stock options held by the selling shareholders that are exercisable within
      60
      days of the date of this prospectus. The "Number of Shares that may be Offered"
includes the shares that may be acquired by the selling shareholders pursuant
      to
      the exercise of stock options granted to the selling shareholders pursuant
      to
      our Plan. Information with respect to "Common Stock Beneficially Owned After the
      Offering" assumes the sale of all of the shares offered by this prospectus and
      no other purchases or sales of our common stock by the selling shareholders.
      The
      percentage of common stock to be owned upon completion of the offering is based
      on 23,504,852
shares
      of
      common stock outstanding as of November 30,
2006.
      Except as described below and to our knowledge, such selling shareholder
      beneficially owns and has sole voting and investment power over all
      shares.
Because
      the selling shareholders may offer all, some or none of the shares pursuant
      to
      the offering contemplated by this prospectus, and because this offering is
      not
      being underwritten on a firm commitment basis, no estimate can be given as
      to
      the amount of common stock that will be held upon termination of this offering.
The
      following table contains information for the selling shareholders offering
      2,240,000 shares pursuant to the Plan:
Name
                of Selling Shareholder(1)
Number
                of Shares Beneficially
Owned
                Prior to the Offering
Number
                of Shares that may be Offered
Common
                Stock Beneficially Owned After the Offering
Number
Percent
                (%)
William
                W. Reid(2)
5,219,606(5)(6
)
800,000(5
)
4,419,606(6
)
18.2
David
                C. Reid(2)
4,311,539(7
)
600,000(7
)
3,711,539
15.4
Bill
                M. Conrad(3)
600,000(8
)
600,000(8
)
0
0
William
                F. Pass(4)
1,561,207
240,000
1,321,027
5.6
___________________________
(1)
      Except as otherwise indicated, the address of each beneficial owner is c/o
      Gold
      Resource Corporation, 222 Milwaukee Street, Suite 301, Denver, Colorado 80206.
(2)
      Officer and director.
(3)
      Director.
(4)
      Former consultant whose address is 2201 Kipling Street, Suite 100, Lakewood,
      Colorado 80215.
(5)
      Includes 800,000 shares underlying options which are exercisable as of the
      date
      of this prospectus.
(6)
      Includes 2,200,000 shares owned by the reporting person's spouse, of which he
      disclaims beneficial ownership.
(7)
      Includes 600,000 shares underlying options, which are exercisable as of the
      date
      of this prospectus.
(8)
      Includes 500,000 shares underlying options, which are exercisable as of the
      date
      of this prospectus.
15
Each
      selling shareholder has purchased or will acquire our common stock for
      investment and with no present intention of distributing or reselling such
      shares unless registered for resale. However, in recognition of the fact that
      holders of restricted securities may wish to be legally permitted to sell their
      shares when they deem appropriate, we have filed a Form S-8 registration
      statement with the SEC of which this prospectus forms a part with respect to
      the
      resale of the shares from time to time in the over the counter market or in
      privately negotiated transactions. We have agreed to prepare and file such
      amendments and supplements to the registration statement and to keep the
      registration statement effective until all the shares offered hereby have been
      sold pursuant thereto, until such shares are no longer, by reason of Rule 144
      under the Securities Act or any other rule of similar effect, required to be
      registered for the sale thereof by the selling shareholders. Sales of shares
      under this prospectus by the selling shareholders, and any other person with
      whom he or she is acting in concert for the purpose of selling our common stock,
      must not exceed, in any three-month period, the amount specified in Rule 144(e)
      promulgated under the Securities Act.
Certain
      of the selling shareholders, their associates and affiliates may from time
      to
      time perform services for our company or its subsidiaries in the ordinary course
      of business.
PLAN
      OF DISTRIBUTION
The
      shares offered hereby may be sold from time to time to purchasers directly
      by
      the selling shareholders. Alternatively, the selling shareholders may from
      time
      to time offer the shares to or through underwriters, broker-dealers or agents,
      who may receive compensation in the form of underwriting discounts, concessions
      or commissions from the selling shareholders or the purchasers of shares for
      whom they may act as agents. The selling shareholders and any underwriters,
      broker-dealers or agents that participate in the distribution of shares may
      be
      deemed to be "underwriters" within the meaning of the Securities Act and any
      profit on the sale of the shares by them deemed to be underwriting discounts
      and
      commissions under the Securities Act. The selling shareholders may agree to
      indemnify any broker or dealer or agent against certain liabilities related
      to
      the selling of the shares, including liabilities arising under the Securities
      Act.
The
      shares offered in this prospectus may be sold from time to time in one or more
      transactions at fixed prices, at prevailing market prices at the time of sale,
      at varying prices determined at the time of sale or at negotiated prices. The
      sale of the shares may be effected in transactions (which may involve crosses
      or
      block transactions) (i) on any national or international securities exchange
      or
      quotation service on which the shares may be listed or quoted at the time of
      sale; (ii) in the over the counter market; (iii) in transactions otherwise
      than
      on such exchanges or in the over the counter market; or (iv) through the writing
      of options. At the time a particular offering of the shares is made, a
      prospectus supplement, if required, will be distributed which will set forth
      the
      aggregate amount and type of shares being offered and the terms of the offering,
      including the name or names of any underwriters, broker-dealers or agents,
      any
      discounts, commissions and other terms constituting compensation from the
      selling shareholders and any discounts, commissions or concessions allowed
      or
      reallowed or paid to broker-dealers.
In
      addition to selling their shares under this prospectus, the selling shareholders
      may transfer their shares in other ways not involving market makers or
      established trading markets, including directly by gift, distribution, or other
      transfer, or sell their shares under Rule 144 of the Securities Act rather
      than
      under this prospectus, if the transaction meets the requirements of Rule 144.
      Any selling shareholder who uses this prospectus to sell his shares will be
      subject to the prospectus delivery requirements of the Securities
      Act.
16
Regulation
      M under the Securities Exchange Act of 1934 provides that during the period
      that
      any person is engaged in the distribution of our shares of common stock, as
      defined in Regulation M, such person generally may not purchase our common
      stock. The selling shareholders are subject to these restrictions, which may
      limit the timing of purchases and sales of our common stock by the selling
      shareholders. This may affect the marketability of our common stock.
All
      expenses of the registration of the shares will be paid by us, including,
      without limitation, SEC filing fees and expenses and compliance with state
      securities or "blue sky" laws; provided, however, that the selling shareholders
      will pay all underwriting discounts and selling commissions, if any.
DESCRIPTION
      OF CAPITAL
      STOCK
Our
      authorized capital consists of 60,000,000 shares of common stock, $0.001 par
      value per share, and 5,000,000 shares of preferred stock, $0.001 per share.
      As
      of November 30, 2006, we had 23,504,852 shares of common stock issued and
      outstanding, and no shares of preferred stock outstanding.
The
      following discussion summarizes the rights and privileges of our capital stock.
      This summary is not complete, and you should refer to our Articles of
      Incorporation, as amended, a copy of which is filed with the SEC as an exhibit
      to our registration statement dated October 28, 2005.
Common
      Stock
The
      holders of our common stock are entitled to one vote for each share held of
      record on all matters submitted to stockholders, including the election of
      directors. Cumulative voting for directors is not permitted. Except as provided
      by special agreement, the holders of common stock are not entitled to any
      preemptive rights and the shares are not redeemable or convertible. All
      outstanding common stock is, and all common stock offered hereby will be, when
      issued and paid for, fully paid and nonassessable. The number of authorized
      shares of common stock may be increased or decreased (but not below the number
      of shares then outstanding or otherwise reserved under obligations for issuance
      by us) by the affirmative vote of a majority of shares cast at a meeting of
      our
      shareholders at which a quorum is present.
Our
      Articles of Incorporation and Bylaws do not include any provision that would
      delay, defer or prevent a change in control of our company. However, as a matter
      of Colorado law, certain significant transactions would require the affirmative
      vote of a majority of the shares eligible to vote at a meeting of shareholders
      which requirement could result in delays to or greater cost associated with
      a
      change in control of the company.
The
      holders of our common stock are entitled to dividends if, as and when declared
      by our Board of Directors from legally available funds, subject to the
      preferential rights of the holders of any outstanding preferred stock. Upon
      any
      voluntary or involuntary liquidation, dissolution or winding up of our affairs,
      the holders of our common stock are entitled to share, on a pro rata basis,
      all
      assets remaining after payment to creditors and prior to distribution rights,
      if
      any, of any series of outstanding preferred stock.
17
Preferred
      Stock
Our
      Articles of Incorporation vest our Board of Directors with authority to divide
      the preferred stock into series and to fix and determine the relative rights
      and
      preferences of the shares of any such series so established to the full extent
      permitted by the laws of the State of Colorado and our Articles of Incorporation
      in respect to, among other things, (i) the number of shares to constitute such
      series and the distinctive designations thereof; (ii) the rate and preference
      of
      dividends, if any, the time of payment of dividends, whether dividends are
      cumulative and the date from which any dividend shall accrue; (iii) whether
      preferred stock may be redeemed and, if so, the redemption price and the terms
      and conditions of redemption; (iv) the liquidation preferences payable on
      preferred stock in the event of involuntary or voluntary liquidation; (v)
      sinking fund or other provisions, if any, for redemption or purchase of
      preferred stock; (vi) the terms and conditions by which preferred stock may
      be
      converted, if the preferred stock of any series are issued with the privilege
      of
      conversion; and (vii) voting rights, if any. As of the date of this prospectus,
      we have not designated or authorized any preferred stock for issuance.
Restrictions
      on Future Sales of Our Common Stock
Under
      the
      terms of an agreement entered into with one holder of our common stock, we
      are
      obligated to offer Heemskirk Consolidated Limited the first right to purchase
      our common stock in any future offering until August 2008. We do not believe
      the
      terms of this arrangement will affect the market for our common stock or
      our future operations. However, it provides the holder the ability to preserve
      or increase its percentage interest in our company.
Transfer
      Agent
We
      have
      appointed Corporate Stock Transfer, Inc. ("CST") in Denver as transfer agent
      for
      our common stock. CST is located at 3200 Cherry Creek Drive South, Suite 430,
      Denver, Colorado 80209 and its telephone number is (303) 282-4800.
LEGAL
      MATTERS
The
      validity of the shares of common stock offered hereby by will be passed upon
      for
      us by Dufford & Brown, P.C., Denver, Colorado.
EXPERTS
Our
      financial statements as of December 31, 2005 and for the two years then ended
      have been incorporated in this prospectus in reliance on the report of Stark
      Winter Schenkein & Co., LLP, our independent registered public accounting
      firm. These financial statements have been incorporated herein on the authority
      of this firm as an expert in auditing and accounting.
18
NO
      DEALER, SALESMAN, OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
      INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
      PROSPECTUS IN CONNECTION WITH THE OFFERING HEREIN CONTAINED AND, IF GIVEN OR
      MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING
      BEEN
      AUTHORIZED BY THE COMPANY OR THE SELLING SHAREHOLDERS. THIS PROSPECTUS DOES
      NOT
      CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, THE
      SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS
      UNLAWFUL TO MAKE AN OFFER OR SOLICITATION. NEITHER THE DELIVERY OF THIS
      PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE
      AN
      IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE
      THE DATE HEREOF OR THAT ANY INFORMATION CONTAINED HEREIN IS CORRECT AS TO ANY
      OF
      THE TIME SUBSEQUENT TO ITS DATE. HOWEVER, THE COMPANY HAS UNDERTAKEN TO AMEND
      THE REGISTRATION STATEMENT OF WHICH THIS PROSPECTUS IS A PART TO REFLECT ANY
      FACTS OR EVENTS ARISING AFTER THE EFFECTIVE DATE THEREOF WHICH INDIVIDUALLY
      OR
      IN THE AGGREGATE REPRESENT A FUNDAMENTAL CHANGE IN THE INFORMATION SET FORTH
      IN
      THE REGISTRATION STATEMENT. IT IS ANTICIPATED, HOWEVER, THAT MOST UPDATED
      INFORMATION WILL BE INCORPORATED HEREIN BY REFERENCE TO THE COMPANY'S REPORTS
      FILED UNDER THE SECURITIES EXCHANGE ACT OF 1934. SEE "DOCUMENTS INCORPORATED
      BY
      REFERENCE."
ALL
      DEALERS EFFECTING TRANSACTIONS IN THE REGISTERED SECURITIES, WHETHER OR NOT
      PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED TO DELIVER A PROSPECTUS.
      THIS IS IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A PROSPECTUS WHEN
      ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD ALLOTMENTS OR
      SUBSCRIPTIONS.
19
You
                  should rely only on the information contained in this document
                  or that we
                  have referred you to. We have not authorized anyone to provide
                  you with
                  information that is different. This prospectus is not an offer
                  to sell
                  common stock and is not soliciting an offer to buy common stock
                  in any
                  state where the offer or sale is not permitted.
2,240,000
                  Shares
GOLD
                  RESOURCE CORPORATION
Common
                  Stock
TABLE OF CONTENTS
Caption
Additional
                  Available Information
5
Documents
                  Incorporated by Reference
5
Summary
6
Risk
                  Factors
7
Forward-Looking
                  Statements
14
Use
                  of
                  Proceeds                                         
                  14
Selling
                  Shareholders
14
Plan
                  of Distribution
16
Description
                  of Capital Stock
17
Legal
                  Matters
18
Experts                                                        18
____________
PROSPECTUS
____________
December
                  1
, 2006
PART
      II
INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT
ITEM
      3. Incorporation of Documents by Reference.
Included
      in prospectus.
ITEM
      4. Description of Securities.
Included
      in prospectus.
ITEM
      5. Interests of Named Experts and Counsel.
Not
      applicable.
ITEM
      6. Indemnification of Directors and Officers
Our
      Articles of Incorporation and Bylaws provide that we must indemnify, to the
      fullest extent permitted by Colorado law, any of our directors, officers,
      employees or agents made or threatened to be made a party to a proceeding,
      by
      reason of the person serving or having served in a capacity as such, against
      judgments, penalties, fines, settlements and reasonable expenses incurred by
      the
      person in connection with the proceeding if certain standards are met. At
      present, there is no pending litigation or proceeding involving any of our
      directors, officers, employees or agents where indemnification will be required
      or permitted. Insofar as indemnification for liabilities arising under the
      Securities Act of 1933 may be permitted to our directors, officers and
      controlling persons pursuant to the foregoing provisions, or otherwise, we
      have
      been advised that in the opinion of the SEC, such indemnification is against
      public policy as expressed in the Securities Act of 1933 and is, therefore,
      unenforceable.
The
      Colorado Business Corporation Act (the "Act") allows indemnification of
      directors, officers, employees and agents of a company against liabilities
      incurred in any proceeding in which an individual is made a party because he
      was
      a director, officer, employee or agent of the company if such person conducted
      himself in good faith and reasonable believed his actions were in, or not
      opposed to, the best interests of the company, and with respect to any criminal
      action or proceeding, had no reasonable cause to believe his conduct was
      unlawful. A person must be found to be entitled to indemnification under this
      statutory standard by procedures designed to assure that disinterested members
      of the board of directors have approved indemnification or that, absent the
      ability to obtain sufficient numbers of disinterested directors, independent
      counsel or shareholders have approved the indemnification based on a finding
      that the person has met the standard. Indemnification is limited to reasonable
      expenses.
Our
      Articles of Incorporation limit the liability of our directors to the fullest
      extent permitted by the Act. Specifically, our directors will not be personally
      liable for monetary damages for breach of fiduciary duty as directors, except
      for:
·
any
                breach of the duty of loyalty to us or our
                stockholders,
·
acts
                or omissions not in good faith or that involved intentional misconduct
                or
                a knowing violation of law,
·
dividends
                or other distributions of corporate assets that are in contravention
                of
                certain statutory or contractual
                restrictions,
·
violations
                of certain laws, or
·
any
                transaction from which the director derives an improper personal
                benefit.
II-1
Liability
      under federal securities law is not limited by the Articles.
ITEM
      7. Exemption from Registration Claimed.
Not
      applicable.
ITEM
      8. Exhibits.
The
      following exhibits are filed with this registration statement:
Number
Description
      of Exhibits
5
Opinion
      of Dufford & Brown, P.C.
23.1
Consent
      of Stark Winter Schenkein & Co., LLP.
23.2
Consent
      of Dufford & Brown, P.C. (included in Exhibit 5).
ITEM
      9. Undertakings.
The
      undersigned registrant hereby undertakes, except as otherwise specifically
      provided in the rules of the Securities and Exchange Commission promulgated
      under the Securities Act of 1933:
(1)
To
      file,
      during any period in which offers or sales are being made, a post-effective
      amendment to this registration statement:
(i)
To
      include any prospectus required by Section 10(a)(3) of the Securities Act of
      1933;
(ii)
To
      reflect in the prospectus any facts or events arising after the effective date
      of the registration statement (or the most recent post-effective amendment
      thereof) which, individually or in the aggregate, represent a fundamental change
      in the information set forth in the registration statement. Notwithstanding
      the
      foregoing, any increase or decrease in volume of securities offered (if the
      total dollar value of securities offered would not exceed that which was
      registered) and any deviation from the low or high end of the estimated maximum
      offering range may be reflected in the form of prospectus filed with the
      Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
      and price represent no more than 20% change in the maximum aggregate offering
      price set forth in the "Calculations of Registration Fee" table in the effective
      registration statement;
(iii)
To
      include any material information with respect to the plan of distribution not
      previously disclosed in the registration statement or any material change to
      such information in the registration statement; Provided, however,
      that:
II-
2
A.
Paragraphs
      (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is on Form
      S-8, and the information required to be included in a post-effective amendment
      by those paragraphs is contained in reports filed with or furnished to the
      Commission by the registrant pursuant to section 13 or section 15(d) of the
      Securities Exchange Act of 1934 that are incorporated by reference in the
      registration statement; and
B.
Paragraphs
      (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the
      registration statement is on Form S-3 or Form F-3 and the information required
      to be included in a post-effective amendment by those paragraphs is contained
      in
      reports filed with or furnished to the Commission by the registrant pursuant
      to
      section 13 or section 15(d) of the Securities Exchange Act of 1934 that are
      incorporated by reference in the registration statement, or is contained in
      a
      form of prospectus filed pursuant to Rule 424(b) that is part of the
      registration statement.
(2)
That,
      for
      the purpose of determining any liability under the Securities Act of 1933,
      each
      such post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To
      remove
      from registration by means of a post-effective amendment any of the securities
      being registered that remain unsold at the termination of the offering.
The
      undersigned registrant hereby undertakes that, for purposes of determining
      any
      liability under the Securities Act of 1933, each filing of the registrant's
      annual report pursuant to section 13(a) or section 15(d) of the Securities
      Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
      plan's annual report pursuant to section 15(d) of the Securities Exchange Act
      of
      1934) that is incorporated by reference in the registration statement shall
      be
      deemed to be a new registration statement relating to the securities offered
      therein, and the offering of such securities at that time shall be deemed to
      be
      the initial bona fide offering thereof.
Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Act and is,
      therefore, unenforceable. In the event that a claim for indemnification against
      such liabilities (other than the payment by the registrant of expenses incurred
      or paid by a director, officer or controlling person of the registrant in the
      successful defense of any action, suit or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act of 1933, as amended, and will be
      governed by the final adjudication of such issue.
II-
3
SIGNATURES
Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      that
      it has reasonable grounds to believe that it meets all of the requirements
      for
      filing on Form S-8 and has caused this Registration Statement to be signed
      on
      its behalf by the undersigned, thereunto duly authorized, in the City of Denver,
      and State of Colorado, on the 30
th
day of November, 2006.
GOLD
                RESOURCE CORPORATION
(Registrant)
By:
/s/
William
              W. Reid
William W. Reid
President and Chief Executive Officer
Pursuant
      to the requirements of the Securities Act of 1933, this registration statement
      has been signed by the following persons in the capacity and on the dates
      stated.
/s/
William
              W. Reid
Date:
                November 30, 2006
William
                W. Reid
Title:
                President, Chief Executive Officer and
Chairman
                of the Board of Directors
/s/
David
                C. Reid
Date:
                  November 30, 2006
David
                  C. Reid
Title:
                  Vice President and Member of the Board of Directors
/s/
Frank
                  L. Jennings
Date:
                    November 30, 2006
Frank
                    L. Jennings
Title:
                    Principal Financial Officer
/s/
Bill
                    M. Conrad
Date:
                      November 30, 2006
Bill
                      M. Conrad
Title:
                      Member of the Board of Directors
II-
4
EXHIBIT
      INDEX
Item
                    Number
Description of Exhibits
5.
Opinion
                    of Dufford & Brown, P.C.
23.1
Consent
                    of Stark Winter Schenkein & Co., LLP.
23.2
Consent
                    of Dufford & Brown, P.C. (included in Exhibit
                    5).