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Increase of 55% in Measured & Indicated
AgEq Ounces and Increase of 55% in NPV from previous January 2021 MRE and PEA
HALIFAX,
NS, Sept. 12, 2023 /PRNewswire/
- GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company") is pleased to release the
results of its updated Preliminary Economic Assessment ("PEA") and
Mineral Resource Estimate ("MRE") at its Los Ricos South ("LRS")
Project located in Jalisco State, Mexico. The updated PEA and
MRE include the addition of the Eagle concession to the Project,
acquired in October 2022, as well as
additional drilling completed in the Main Zone of the Project since
the release of the initial PEA in January 2021.
Highlights of the PEA, with a base case silver price of
US$23.75/oz and gold price of
US$1,850/oz are as follows (all
figures in US dollars unless otherwise stated):
- After-Tax net present value ("NPV") (using a discount rate of
5%) of US$458 Million with an
After-Tax IRR of 37% (Base Case);
- 11-year mine life producing a total of 88 Million payable
silver equivalent ounces ("AgEq"), consisting of 47 Million silver
ounces, 493 Thousand gold ounces, and 14 Million pounds of
copper;
- Initial capital costs of $148
Million, including $19 Million
in contingency costs, over an expected 18 month build, additional
expansion capital of $69 Million, and
sustaining capital costs of $72
Million over the life of mine ("LOM");
- Average LOM operating cash costs of $8.15/oz AgEq, and all in sustaining costs
("AISC") of $9.02/oz AgEq
- Average annual production of 8 Million AgEq oz;
- Approximately half of LOM metal production is long hole
underground ("UG"), and approximately half is open pit ("OP")
mining;
"We are very pleased with the work completed by our consultants
and our technical team on the Mineral Resource and PEA for Los
Ricos South. The projected cash flows are very substantial,
especially when combined with our Los Ricos North PEA that was
completed in March of this year. With an NPV of US$458M at LRS and US$413M at LRN, we now have a total NPV of
US$871M in our Los Ricos district. We
continue to advance the studies and we will complete a
Pre-Feasibility Study ("PFS") for LRS this fall," said Brad Langille, President and CEO. "The PFS
is ongoing and we are currently completing the advanced
geotechnical work with our consultants. We will also continue to
focus our efforts on the mine plan as we believe further
optimization opportunities can be made. With our strong balance
sheet we will continue to advance the project rapidly."
Highlights of the updated Mineral Resource:
- Increase of 55% in Measured & Indicated Silver Equivalent
("AgEq") Ounces from initial January
2021 MRE, with 39% increase in Measured & Indicated AgEq
grade;
- Inclusion of 1.9 Million tonnes Measured & Indicated at
excellent grade of 516 g/t AgEq in underground Eagle
Deposit;
- Measured & Indicated Mineral Resource at LRS of 98.6
Million ounces AgEq grading 276 g/t AgEq contained in 11.1 Million
tonnes ("Mt");
- Increased confidence in MRE, with conversion of
approximately 9 Million ounces AgEq from initial January 2021 Inferred Mineral Resources to
Measured & Indicated, resulting in 11 Million ounces AgEq in
Inferred Mineral Resources at LRS grading 248 g/t AgEq contained in
1.4 Mt;
- Total Los Ricos Measured & Indicated Mineral Resources
of 186 Million ounces AgEq, including Los Ricos North
- Total Los Ricos Inferred Mineral Resources of 84 Million
ounces AgEq, including Los Ricos North
Updated PEA Summary
The updated PEA was prepared by independent consultants P&E
Mining Consultants Inc ("P&E"), with metallurgical test work
completed by SGS Canada Inc.'s Lakefield office ("SGS"), geotechnical study
by Golder & Associates of Tucson, process plant design and costing by
D.E.N.M. Engineering Ltd., and environmental and permitting led by
CIMA Mexico.
Following are tables and figures showing key assumptions,
results, and sensitivities.
Table 1 – LRS PEA Key Economic
Assumptions and Results
|
Assumption /
Result
|
Unit
|
Value
|
|
Assumption /
Result
|
Unit
|
Value
|
|
Total OP Plant Feed
Mined
|
kt
|
9,367
|
|
Net Revenue
|
US$M
|
2,049
|
|
Total UG Plant Feed
Mined
|
kt
|
4,325
|
|
Initial Capital
Costs
|
US$M
|
148
|
|
Total Plant Feed
Mined
|
kt
|
13,692
|
|
Expansion Capital
Costs
|
US$M
|
69
|
|
Operating Strip
Ratio
|
Ratio
|
7.4
|
|
Sustaining Capital
Costs
|
US$M
|
72
|
|
Silver
Grade1
|
g/t
|
125
|
|
OP Mining
Costs
|
$/t Plant
Feed
|
12.13
|
|
Gold
Grade1
|
g/t
|
1.18
|
|
UG Mining
Costs
|
$/t Plant
Feed
|
43.85
|
|
AgEq
Grade1
|
g/t
|
217
|
|
LOM Mining
Costs
|
$/t Plant
Feed
|
22.15
|
|
Silver
Recovery
|
%
|
86
|
|
Operating Cash
Cost
|
US$/oz AgEq
|
8.15
|
|
Gold
Recovery
|
%
|
95
|
|
All in Sustaining
Cost
|
US$/oz AgEq
|
9.02
|
|
Silver Price
|
US$/oz
|
23.75
|
|
Mine Life
|
Yrs
|
11
|
|
Gold Price
|
US$/oz
|
1,850
|
|
Average process
rate
|
t/day
|
3,349
|
|
Copper Price
|
US$/lb
|
4.00
|
|
After-Tax NPV (5%
discount)
|
US$M
|
458
|
|
Payable Silver
Metal
|
Moz
|
46.8
|
|
Pre-Tax NPV (5%
discount)
|
US$M
|
708
|
|
Payable Gold
Metal
|
koz
|
493
|
|
After-Tax
IRR
|
%
|
36.6
|
|
Payable
Copper
|
Mlb
|
13.5
|
|
Pre-Tax IRR
|
%
|
49.1
|
|
Payable AgEq
|
Moz
|
88.2
|
|
After-Tax Payback
Period
|
Yrs
|
2.3
|
|
1.
|
Grades shown are LOM
average process plant feed grades including both OP and UG sources.
External dilution of approximately
10% for OP material and 28% for UG material was incorporated in the
mining schedule.
|
Figure 1 above highlights the excellent post-tax cash flows
associated with the LRS project. The economics of the project
have been evaluated based on the base case scenario US$23.75/oz silver price and gold price of
US$1,850/oz. As illustrated in
the following sensitivity tables, the project remains robust even
at lower commodity prices or with higher costs.
Table 2 – LRS PEA Gold and Silver
Price Sensitivities
|
Sensitivity
|
|
|
|
Base
Case
|
|
|
|
|
Silver Price
(US$/oz)
|
17
|
19
|
21
|
23.75
|
26
|
30
|
33
|
|
Gold Price
(US$/oz)
|
1,324
|
1,480
|
1,636
|
1,850
|
2,025
|
2,337
|
2,571
|
|
After-Tax NPV (5%)
(US$M)
|
185
|
266
|
346
|
458
|
548
|
710
|
831
|
|
After-Tax IRR
(%)
|
19.7
|
25.1
|
30.2
|
36.6
|
41.6
|
49.9
|
55.7
|
|
After-Tax Payback
(years)
|
3.6
|
3.0
|
2.6
|
2.3
|
2.1
|
1.7
|
1.6
|
Table 3 – LRS PEA Operating Cost
and Capital Cost Sensitivities
|
Sensitivity
|
-20 %
|
-10 %
|
Base
Case
|
10 %
|
20 %
|
|
Operating Costs – NPV
(US$M)
|
526
|
492
|
458
|
423
|
389
|
|
Operating Costs – IRR
(%)
|
40.6
|
38.6
|
36.6
|
34.6
|
32.5
|
|
Capital Costs – NPV
(US$M)
|
495
|
476
|
458
|
439
|
420
|
|
Capital Costs – IRR
(%)
|
45.2
|
40.5
|
36.6
|
33.3
|
30.4
|
Capital and Operating
Costs
The LRS Project has been envisioned as a combined underground
and open pit mining operation, with contract underground mining in
years one to seven of the mine plan, supplemented by contract open
pit mining in years three to eleven.
The process plant is comprised of conventional crushing and
grinding followed by cyanide tank leaching. Back end filtration is
required to maximize water recycling (dry stack tailings) as well
as a SART (sulfidation, acidification re-neutralization and
thickening) circuit to re-generate cyanide back to the process and
to produce a saleable Cu2S copper sulfide product. Water
supply to the process plant is provided by a nearby seasonally
charged water dam and high voltage grid power is provided by the
local utility. Expansion capital includes the cost to
increase the process plant capacity from 1,750 tonnes per day to
4,000 tonnes per day in year three.
Table 4 – LOM Capital Cost
Estimate
|
Type
|
Initial
(US$k)
|
Expansion
(US$k)1
|
Sustaining
(US$k)
|
Total
(US$k)
|
|
Process Plant direct
costs
|
54,475
|
42,700
|
12,125
|
109,300
|
|
Underground
development
|
60,706
|
|
48,473
|
109,179
|
|
Pre-stripping
|
|
19,074
|
500
|
19,574
|
|
Infrastructure
|
9,980
|
|
1,250
|
11,230
|
|
Project indirect
costs
|
3,750
|
|
|
3,750
|
|
Total
|
128,911
|
61,774
|
62,348
|
253,033
|
|
Contingency
(15%)
|
19,337
|
6,747
|
9,352
|
35,436
|
|
Total
|
148,247
|
68,521
|
71,700
|
288,469
|
|
1. Expansion capital is
not included in AISC calculation
|
Table 5 – Operating Costs
(Average LOM)
|
Operating Costs
(Average LOM)
|
US$/tonne
Plant
Feed
|
US$/tonne
Rock
|
|
Open Pit
Mining1
|
12.13
|
1.65
|
|
Underground
Mining2
|
43.85
|
|
|
Total LOM
Mining3
|
22.15
|
|
|
Processing
($/t processed)
|
27.10
|
|
|
General and Admin
($/t processed)
|
2.63
|
|
|
Total ($/t
processed)
|
51.88
|
|
|
1.
|
Open pit mining costs
include a double-benched waste rock and mineralized material
average unit cost of $1.47/t.
|
|
2.
|
Bulk underground long
hole mining. $43.85 is the cost of in-stope mining,
additional
development costs of $11.21/t mined are included in sustaining
capital in table 4, providing
a total UG mining cost of $55.06/t.
|
|
3.
|
Average LOM mining cost
of both open pit and underground.
|
Mining
The contract underground mining will involve long hole stoping
and cemented paste back filling of the mined-out stopes.
Approximately 10% of the underground feed to the process plant will
be sourced in close proximity to historical workings. The open pit
mining will be contracted and carried out by drill and blast
followed by conventional loading and truck haulage to the waste
rock storage facilities and the process plant.
Metallurgy
A metallurgical test program was carried out by SGS Lakefield of
Ontario, Canada. The program
included grinding and leaching as well as comminution testing. The
leach samples comprised of drill core sampling rejects representing
the various zones of the Mineral Resource and whole HQ drill core
for the comminution work. This preliminary test program estimated
average gold and silver respective metallurgical recoveries of 95%
and 85%.
Surface Rights Agreement
The Company has an agreement with the Ejido of Cinco
Minas, which owns the surface rights over all of those
concessions included in this PEA. The agreement allows GoGold
to mine and explore the 1,280 hectares of land that is owned by the
local Ejido for a period of twelve
years with an option to renew for a further twelve years.
Mineral Resource
Estimate
The basis for the PEA is the Mineral Resource Estimate completed
by P&E for the Los Ricos South Project located in Jalisco
State, Mexico, which has an
effective date of September 8, 2023,
with an NI 43-101 compliant Technical Report to be filed within 45
days of this news release. A summary of the Mineral Resource
Estimate is provided in Table 6.
Table 6: Los Ricos South Mineral
Resource Estimate – Pit Constrained and
Out-of-Pit(1-7)
|
Mining
Area
|
Category
|
Tonnes
|
Average
Grade
|
Contained
Metal
|
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
|
|
(M)
|
(g/t)
|
(g/t)
|
( %)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
(Mlb)
|
(koz)
|
(koz)
|
|
Pit
Constrained5
|
Measured
|
3.9
|
1.08
|
142
|
0.03
|
2.94
|
231
|
135.9
|
17,858
|
2.3
|
369.1
|
28,898
|
|
Indicated
|
2.8
|
0.68
|
89
|
0.03
|
1.87
|
146
|
60.7
|
8,022
|
1.9
|
167.3
|
13,097
|
|
M&I
|
6.7
|
0.91
|
120
|
0.03
|
2.49
|
195
|
196.6
|
25,880
|
4.2
|
536.4
|
41,995
|
|
Inferred
|
0.5
|
0.58
|
99
|
0.04
|
1.91
|
150
|
9.6
|
1,632
|
0.4
|
31.4
|
2,460
|
|
Out-of-Pit6,7
|
Measured
|
0.7
|
3.60
|
298
|
0.35
|
7.94
|
621
|
80.7
|
6,679
|
5.4
|
178.1
|
13,940
|
|
Eagle
|
Indicated
|
1.2
|
3.13
|
164
|
0.37
|
5.79
|
453
|
117.5
|
6,176
|
9.5
|
217.5
|
17,028
|
|
M&I
|
1.9
|
3.30
|
214
|
0.36
|
6.59
|
516
|
198.2
|
12,855
|
15.0
|
395.6
|
30,969
|
|
Inferred
|
0.1
|
3.63
|
122
|
0.54
|
6.00
|
470
|
7.8
|
261
|
0.8
|
12.9
|
1,006
|
|
Out-of-Pit6,7
|
Measured
|
1.1
|
1.22
|
194
|
0.06
|
3.79
|
297
|
44.7
|
7,093
|
1.6
|
138.8
|
10,865
|
|
Main
|
Indicated
|
1.4
|
1.58
|
178
|
0.21
|
4.18
|
327
|
71.5
|
8,013
|
6.6
|
188.4
|
14,753
|
|
M&I
|
2.5
|
1.42
|
185
|
0.15
|
4.00
|
313
|
116.2
|
15,106
|
8.1
|
327.2
|
25,618
|
|
Inferred
|
0.8
|
1.42
|
133
|
0.41
|
3.73
|
292
|
36.8
|
3,431
|
7.2
|
96.6
|
7,566
|
|
Total
|
Measured
|
5.7
|
1.42
|
172
|
0.07
|
3.72
|
291
|
261.4
|
31,631
|
9.3
|
686.0
|
53,703
|
|
Indicated
|
5.4
|
1.45
|
129
|
0.15
|
3.33
|
260
|
249.7
|
22,210
|
18.0
|
573.2
|
44,878
|
|
M&I
|
11.1
|
1.43
|
151
|
0.11
|
3.53
|
276
|
511.0
|
53,841
|
27.3
|
1,259.2
|
98,582
|
|
Inferred
|
1.4
|
1.22
|
120
|
0.28
|
3.17
|
248
|
54.1
|
5,325
|
8.5
|
140.9
|
11,033
|
|
1.
|
Mineral Resources which
are not Mineral Reserves do not have demonstrated economic
viability. The estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
|
|
2.
|
The Inferred Mineral
Resource in this estimate has a lower level of confidence than that
applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred
Mineral Resource could be upgraded to an Indicated Mineral Resource
with continued exploration.
|
|
3.
|
The Mineral Resources
in this news release were estimated in accordance with the Canadian
Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources
and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by the CIM Council.
|
|
4.
|
Historically mined
areas were depleted from the Mineral Resource model.
|
|
5.
|
The pit constrained
AgEq cut-off grade of 38 g/t Ag was derived from US$1,800/oz Au
price, US$23.00/oz Ag price, 85%
Ag and 95% Au process recovery, US$25/tonne process and G&A
cost. The constraining pit optimization parameters
were $2.10/t mineralized material and waste mining cost, and
45-degree pit slopes.
|
|
6.
|
The out-of-pit AgEq
cut-off grade of 130 g/t Ag was derived from US$1,800/oz Au price,
US$23.00/oz Ag price, 85% Ag
and 95% Au process recovery, US$33/tonne process and G&A cost,
and a $50/tonne mining cost. The out-of-pit Mineral
Resource grade blocks were quantified above the 130 g/t AgEq
cut-off, below the constraining pit shell and within the
constraining mineralized wireframes. Out–of-Pit Mineral Resources
are restricted to the Los Ricos and Rascadero Veins,
which exhibit historical continuity and reasonable potential for
extraction by cut and fill and longhole mining methods.
|
|
7.
|
AgEq and AuEq were
calculated at an Ag/Au ratio of 86.5:1 for pit constrained and
89.6:1 for out-of-pit.
|
Mineral Resource Estimate
Methodology – LRS
A total of 585 drill holes totalling 93,591 metres were used in
the MRE.
P&E collaborated with GoGold personnel to develop the
mineralization models, estimates, and reporting criteria for the
Resources at Los Ricos. Mineralization models were initially
developed by GoGold and were reviewed and modified by P&E. A
total of eight individual mineralized domains have been identified
through drilling, surface and historical underground sampling. The
modeled mineralization domains are constrained by individual
wireframes based on a 0.30 g/t AuEq cut-off for low-grade domains
or 3.0 g/t AuEq for high-grade domains.
Mineralization wireframes were used as hard boundaries for the
purposes of estimation.
A three-dimensional sub-blocked model, with 3m x 3m x
3m parent and 1m x 1m x
1m sub blocks, was used for the
Mineral Resource Estimate. The block model consists of estimated
Au, Ag and Cu grades, estimated bulk density, and classification
criteria. Au and Ag equivalent block grades were subsequently
calculated from the estimated Au, Ag and Cu grades.
Sample assays were composited to a 1
m standard length. Au and Ag grades were estimated using
Inverse Distance Cubed weighting of between 1 and 12 composites,
with a maximum of 2 composites per drill hole. Composites were
capped prior to estimation by mineralization domain. Composite
samples were selected within an anisotropic search ellipse oriented
down the plunge of identified high grade trends.
Individual bulk density values were applied to mineralized
domains separately and were statistically determined using 4,516
measurements taken from drill holes.
Classification criteria were determined from observed grade and
geological continuity as well as variography. Measured Mineral
Resources are informed by 3 or more drill holes within 30 m; Indicated Mineral Resources are informed by
2 or more drill holes within 60
m.
P&E is of the opinion that the Mineral Resource Estimates
are suitable for public reporting and are a reasonable
representation of the mineralization and metal content of the Los
Ricos Deposits.
Table 7: AgEq Cut-off
Sensitivities – LRS Pit Constrained Mineral
Resource1
Pit
Constrained
|
Cut-off
(AgEq)
|
Tonnes
|
Average
Grade
|
Contained
Metal
|
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
|
(g/t)
|
(M)
|
(g/t)
|
(g/t)
|
( %)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
(Mlb)
|
(koz)
|
(koz)
|
|
Measured
|
250
|
1.06
|
2.71
|
336
|
0.04
|
7.07
|
553
|
92
|
11,437
|
0.9
|
240
|
18,808
|
|
150
|
1.76
|
2.00
|
250
|
0.03
|
5.24
|
410
|
113
|
14,121
|
1.3
|
296
|
23,195
|
|
80
|
2.76
|
1.44
|
185
|
0.03
|
3.85
|
301
|
128
|
16,417
|
1.8
|
342
|
26,777
|
|
60
|
3.26
|
1.26
|
164
|
0.03
|
3.40
|
266
|
133
|
17,167
|
2.0
|
356
|
27,892
|
|
38
|
3.90
|
1.08
|
142
|
0.03
|
2.94
|
231
|
136
|
17,858
|
2.3
|
369
|
28,898
|
|
30
|
4.11
|
1.03
|
137
|
0.03
|
2.82
|
221
|
137
|
18,019
|
2.4
|
372
|
29,124
|
|
Indicated
|
250
|
0.39
|
2.34
|
257
|
0.07
|
5.74
|
449
|
29
|
3,188
|
0.6
|
71
|
5,559
|
|
150
|
0.74
|
1.67
|
188
|
0.05
|
4.15
|
325
|
40
|
4,496
|
0.9
|
99
|
7,783
|
|
80
|
1.67
|
1.00
|
123
|
0.04
|
2.62
|
205
|
54
|
6,586
|
1.4
|
141
|
11,027
|
|
60
|
2.15
|
0.83
|
106
|
0.03
|
2.23
|
175
|
58
|
7,314
|
1.6
|
155
|
12,098
|
|
38
|
2.79
|
0.68
|
89
|
0.03
|
1.87
|
146
|
61
|
8,022
|
1.9
|
167
|
13,097
|
|
30
|
2.99
|
0.64
|
85
|
0.03
|
1.77
|
138
|
61
|
8,188
|
1.9
|
170
|
13,323
|
|
Inferred
|
250
|
0.10
|
1.41
|
252
|
0.06
|
4.71
|
369
|
5
|
822
|
0.1
|
15
|
1,203
|
|
150
|
0.13
|
1.29
|
217
|
0.07
|
4.16
|
326
|
6
|
939
|
0.2
|
18
|
1,408
|
|
80
|
0.34
|
0.77
|
127
|
0.05
|
2.47
|
194
|
8
|
1,394
|
0.4
|
27
|
2,119
|
|
60
|
0.45
|
0.64
|
108
|
0.04
|
2.08
|
163
|
9
|
1,572
|
0.4
|
30
|
2,374
|
|
38
|
0.51
|
0.58
|
99
|
0.04
|
1.91
|
150
|
10
|
1,632
|
0.4
|
31
|
2,460
|
|
30
|
0.54
|
0.56
|
96
|
0.04
|
1.84
|
144
|
10
|
1,652
|
0.5
|
32
|
2,490
|
|
1. See
Table 6 notes for assumptions
|
Table 8: AgEq Cut-off
Sensitivities – LRS Out-of-Pit Mineral
Resource1,2
|
Cut-off
|
Tonnes
|
Average
Grade
|
Contained
Metal
|
|
Out-of-Pit
|
(AgEq)
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
Au
|
Ag
|
Cu
|
AuEq
|
AgEq
|
|
(g/t)
|
(M)
|
(g/t)
|
(g/t)
|
( %)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
(Mlb)
|
(koz)
|
(koz)
|
|
Measured
|
250
|
1.03
|
3.12
|
337
|
0.24
|
7.79
|
610
|
103
|
11,141
|
5.3
|
257
|
20,142
|
|
200
|
1.26
|
2.76
|
297
|
0.21
|
6.88
|
539
|
112
|
12,045
|
5.9
|
279
|
21,819
|
|
150
|
1.63
|
2.31
|
252
|
0.19
|
5.81
|
455
|
122
|
13,220
|
6.7
|
305
|
23,891
|
|
140
|
1.73
|
2.22
|
243
|
0.18
|
5.60
|
438
|
123
|
13,477
|
6.8
|
311
|
24,323
|
|
130
|
1.84
|
2.12
|
233
|
0.17
|
5.37
|
420
|
125
|
13,773
|
7.0
|
317
|
24,805
|
|
120
|
1.99
|
2.00
|
221
|
0.16
|
5.08
|
397
|
128
|
14,165
|
7.2
|
325
|
25,417
|
|
Indicated
|
250
|
1.59
|
3.13
|
224
|
0.35
|
6.52
|
510
|
160
|
11,425
|
12.2
|
333
|
26,052
|
|
200
|
1.92
|
2.80
|
203
|
0.33
|
5.89
|
461
|
173
|
12,529
|
13.8
|
363
|
28,444
|
|
150
|
2.31
|
2.47
|
183
|
0.30
|
5.26
|
412
|
183
|
13,607
|
15.2
|
391
|
30,610
|
|
140
|
2.43
|
2.38
|
178
|
0.29
|
5.10
|
399
|
186
|
13,885
|
15.6
|
398
|
31,165
|
|
130
|
2.57
|
2.29
|
172
|
0.28
|
4.91
|
384
|
189
|
14,189
|
16.1
|
406
|
31,781
|
|
120
|
2.74
|
2.18
|
165
|
0.28
|
4.71
|
369
|
192
|
14,520
|
16.7
|
414
|
32,445
|
|
Inferred
|
250
|
0.47
|
2.26
|
185
|
0.49
|
5.37
|
421
|
34
|
2,789
|
5.1
|
81
|
6,346
|
|
200
|
0.57
|
2.07
|
168
|
0.47
|
4.93
|
386
|
38
|
3,073
|
5.9
|
90
|
7,064
|
|
150
|
0.72
|
1.81
|
148
|
0.44
|
4.37
|
342
|
42
|
3,413
|
6.9
|
101
|
7,882
|
|
140
|
0.77
|
1.73
|
142
|
0.43
|
4.19
|
328
|
43
|
3,514
|
7.3
|
104
|
8,139
|
|
130
|
0.87
|
1.59
|
132
|
0.42
|
3.91
|
306
|
45
|
3,693
|
8.0
|
109
|
8,572
|
|
120
|
1.00
|
1.44
|
121
|
0.40
|
3.60
|
282
|
47
|
3,897
|
8.9
|
116
|
9,098
|
|
1
|
See Table 6 notes for
assumptions
|
Table 9: Los Ricos Mineral
Resources – LRS & LRN(1-4)
|
Deposit
|
Tonnes
|
Average
Grade
|
Contained
Metal
|
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
AuEq
|
AgEq
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
AuEq
|
AgEq
|
|
(M)
|
(g/t)
|
(g/t)
|
( %)
|
( %)
|
( %)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
(Mlb)
|
(Mlb)
|
(Mlb)
|
(koz)
|
(koz)
|
|
LRS
Measured1
|
5.7
|
1.42
|
172
|
0.07
|
|
|
3.72
|
291
|
261
|
31,631
|
9
|
-
|
-
|
686
|
53,703
|
|
Indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LRN
(Oxide)2
|
14.5
|
0.37
|
100
|
-
|
-
|
-
|
1.71
|
127
|
171
|
46,500
|
-
|
-
|
-
|
801
|
59,100
|
|
LRS
(Oxide)1
|
5.4
|
1.45
|
129
|
0.15
|
|
|
3.33
|
260
|
250
|
22,210
|
18
|
-
|
-
|
573
|
44,878
|
|
LRN
(Sulfide)2
|
7.8
|
0.06
|
28
|
0.11
|
0.88
|
1.33
|
1.55
|
114
|
15
|
7,011
|
19
|
151
|
229
|
389
|
28,708
|
|
Total
Indicated
|
27.7
|
|
|
|
|
|
1.98
|
149
|
436
|
75,721
|
37
|
151
|
229
|
1,763
|
132,686
|
|
Measured &
Indicated
|
33.4
|
|
|
|
|
|
2.28
|
174
|
697
|
107,352
|
46
|
151
|
229
|
2,449
|
186,390
|
|
Inferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LRN
(Oxide)2
|
15.0
|
0.28
|
91
|
-
|
-
|
-
|
1.52
|
112
|
136
|
44,131
|
-
|
-
|
-
|
734
|
54,191
|
|
LRS
(Oxide)1
|
1.4
|
1.22
|
120
|
0.28
|
|
|
3.17
|
248
|
54.1
|
5,325
|
8.5
|
-
|
-
|
140.9
|
11,033
|
|
LRN
(Sulfide)2
|
5.5
|
0.06
|
28
|
0.12
|
0.74
|
1.2
|
1.46
|
108
|
11
|
4,888
|
15
|
90
|
146
|
258
|
19,007
|
|
Total
Inferred
|
21.9
|
|
|
|
|
|
1.61
|
120
|
201
|
54,344
|
24
|
90
|
146
|
1,133
|
84,231
|
|
1.
|
See Table 6 notes for
assumptions
|
|
2.
|
See GoGold press
release #04-2022 dated January 21, 2022 for full details regarding
the LRN Resource.
|
|
3.
|
AgEq and AuEq
calculated at an Ag/Au ratio of 87.5.
|
|
4.
|
Totals may not agree
due to rounding.
|
Qualified Persons
Robert Harris, P.Eng. and
David Duncan, P.Geo. are the GoGold
Qualified Persons and Eugene
Puritch, P.Eng., FEC, CET, President of P&E Mining
Consultants Inc. and David J.
Salari, P. Eng., D.E.N.M. Engineering Ltd. are Independent
Qualified Persons all as defined by National Instrument 43-101 and
have reviewed and approved the technical information in this press
release.
VRIFY Slide Deck and 3D
Presentation
VRIFY is a platform being used by companies to communicate with
investors using 360° virtual tours of remote mining assets, 3D
models and interactive presentations. VRIFY can be accessed by
website and with the VRIFY iOS and Android apps.
The VRIFY 3D Slide Deck for GoGold can be viewed
at: https://vrify.com/companies/gogold-resources-inc and
on the Company's website at: www.gogoldresources.com.
Los Ricos District Exploration
Projects
The Company's two exploration projects at its Los Ricos Property
are in Jalisco state, Mexico. The Los Ricos South Project began in
March 2019, with the most recent
Mineral Resource Estimate announced on September 12, 2023, which disclosed a Measured
& Indicated Mineral Resource of 98.6 Million ounces AgEq
grading 276 g/t AgEq contained in 11.1 Million tonnes, and an
Inferred Mineral Resource of 11.0 Million ounces AgEq grading 248
g/t AgEq contained in 1.4 Million tonnes. The most recent PEA
on the Project was announced on September
12, 2023, indicating an after-tax NPV5% of
US$458M.
The Los Ricos North Project was launched in March 2020 and an initial Mineral Resource
Estimate was announced on December 7,
2021, which disclosed an Indicated Mineral Resource Estimate
of 87.8 million ounces AgEq grading 122 g/t AgEq contained in 22.3
Million tonnes, and an Inferred Mineral Resource Estimate of 73.2
million ounces AgEq grading 111 g/t AgEq contained in 20.5 Million
tonnes. An initial PEA on the Project was announced on May 17, 2023, indicating an NPV5% of
US$413M.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold
producer focused on operating, developing, exploring and acquiring
high quality projects in Mexico. The Company operates the
Parral Tailings Project in the state of
Chihuahua and has the Los Ricos South and Los Ricos North
exploration Projects in the state of Jalisco. Headquartered in Halifax, NS, GoGold is building a portfolio of
low cost, high margin projects. For more information visit
gogoldresources.com.
CAUTIONARY STATEMENT:
The securities described herein have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws,
and may not be offered or sold within the
United States or to, or for the benefit of, U.S. persons (as
defined in Regulation S under the U.S. Securities Act) except in
compliance with the registration requirements of the U.S.
Securities Act and applicable state securities laws or pursuant to
exemptions therefrom. This release does not constitute an offer to
sell or a solicitation of an offer to buy of any of GoGold's
securities in the United
States.
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the Los Ricos South and North projects, and future plans and
objectives of GoGold, including the NPV, IRR, initial and
sustaining capital costs, operating costs, and LOM production of
Los Ricos South, constitute forward looking information that
involve various risks and uncertainties. Forward-looking
information is based on a number of factors and assumptions which
have been used to develop such information but which may prove to
be incorrect, including, but not limited to, assumptions in
connection with the continuance of GoGold and its subsidiaries as a
going concern, general economic and market conditions, mineral
prices, the accuracy of Mineral Resource Estimates, and the
performance of the Parral Project. There can be no assurance that
such information will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such forward-looking information.
Important factors that could cause actual results to differ
materially from GoGold's expectations include exploration and
development risks associated with GoGold's projects, the failure to
establish estimated Mineral Resources or Mineral Reserves,
volatility of commodity prices, variations of recovery rates, and
global economic conditions. For additional information with respect
to risk factors applicable to GoGold, reference should be made to
GoGold's continuous disclosure materials filed from time to time
with securities regulators, including, but not limited to, GoGold's
Annual Information Form. The forward-looking information contained
in this release is made as of the date of this release.
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SOURCE GoGold Resources Inc.
