Shares Outstanding:
328,222,500
Trading
Symbols:
TSX: GGD
OTCQX: GLGDF
HALIFAX,
NS, Jan. 10, 2024 /PRNewswire/ - GoGold
Resources Inc. (TSX: GGD) (OTCQX:
GLGDF) ("GoGold", "the Company") is pleased to
provide an outlook of milestones and deliverables for 2024.
"2023 was another year of significant advancements of the Los
Ricos district. In less than five years, we have taken the district
from having no resources to having 186 million silver equivalent
(AgEq) ounces of measured & indicated resources and 87 million
AgEq ounces of inferred resources. We also completed two
preliminary economic assessments ("PEA"), in each of Los Ricos
South and Los Ricos North which showed a combined total NPV of
US$871M for the district.
Additionally, in 2023 we applied for a permit to construct a mine
at Los Ricos South. We're very proud of our technical team's
ability to achieve these significant accomplishments in less than
five years at Los Ricos, and now we look to the future,"
Brad Langille, President and CEO
stated. "In 2024, we see the following key milestones:
- Complete commissioning of SART Zinc circuit in January at
Parral, as we enter our tenth year of production;
- Advancing directly from the PEA completed at Los Ricos
South in 2023 to a definitive feasibility study to be completed
within first six months of 2024;
- Completion of Los Ricos South mine permitting technical
review process in first calendar quarter of 2024, anticipating
receipt of permit by mid year pending governmental review;
- Make construction decision at Los Ricos South after
completion of feasibility study and receipt of mine permit;
- Initiate construction of electrical and water infrastructure at
Los Ricos South by end of 2024;
- Enter into definitive agreement on debt financing for balance
of funds required for construction of Los Ricos South, initial
discussions with prospective lenders have generated significant
interest;
- Assess potential debt financing options that will allow
flexibility to advance Los Ricos North towards a construction
decision during the potential construction of Los Ricos South.
With the above and supported by our strong balance sheet
including our year end cash balance of $95
million USD (see financial results PR dated December 19, 2023), 2024 is sure to be a
transformational year for GoGold as it advances towards a
substantial low-cost silver producer."
Parral Update
At Parral, the SART Zinc circuit was constructed on time and on
budget over the previous two quarters, and the commissioning
process should be completed by the end of January.
Summary of Zinc circuit effects:
- Saleable zinc precipitate to be added to the revenue
stream;
- Regeneration of approximately 750 tons of cyanide per
quarter;
- Anticipated to generate net increased cash flows of
$1.5 million per quarter;
- Zinc circuit capital expenditure as planned at $2 million over 6 month construction period;
- Project payback expected within 6 months after
construction;
- Parral up to end of its mine life will be a producer of silver,
gold, copper and zinc;
- Expected to result in better precious metals recovery;
- Completed on time and on budget.
"The completion of the zinc circuit in the SART is important as
it expected to generate approximately $500,000 per month for cash flow, which will pay
back the $2M capex quickly. We
believe it will improve the metallurgical recoveries of gold and
silver on the material which we are processing currently, so we
expect to see production increase once commissioning is completed,"
said Brad Langille, President and CEO.
Table 1: Quarterly Production Summary
|
Quarter
Ended
|
Sep
2022
|
Dec
2022
|
Mar
2023
|
Jun
2023
|
Sep
2023
|
Dec
2023
|
|
Silver Production
(oz)
|
145,944
|
159,838
|
173,717
|
203,894
|
169,443
|
109,016
|
|
Gold Production
(oz)
|
2,278
|
2,399
|
2,016
|
1,512
|
1,106
|
1,848
|
|
Copper Production
(tonnes)
|
124
|
222
|
143
|
135
|
115
|
95
|
|
Silver Equivalent
Production (oz)1
|
400,467
|
441,217
|
400,145
|
375,112
|
300,789
|
300,260
|
|
1. "Silver equivalent
production" include gold ounces and copper tons produced and
converted to a silver
equivalent based on a ratio of the average market metal price for
each period. The gold:silver ratio for
each of the periods presented was: Sep 2022 – 90, Dec 2022 – 82,
Mar 2023 – 84, Jun 2023 – 82, Sep
2023 – 83, Dec 2023 – 85. The copper:silver ratios were: Jun
2022 – 415, Sep 2022 – 398, Dec 2022 –
377, Mar 2023 – 399, Jun 2023 – 352, Sep 2023 – 356, Dec 2023 –
356.
|
Los Ricos South
During 2023, the Company completed an updated Mineral Resource
Estimate ("MRE") and updated PEA at Los Ricos South, with details
provided below. For 2024, GoGold will work with our technical
team and consultants to complete all engineering and technical work
required to make a construction decision on the project in the
upcoming year. As part of this work, the Company is in the process
of completing a definitive feasibility study and front-end
engineering design which is expected to be released in the first
six months of 2024, and advancing the mine permitting application
process. P&E Mining Consultants Inc. has been selected as the
lead author of the study, supported by Ausenco for the process and
mill design.
2023 Mineral Resource Estimate and PEA
The Los Ricos South Mineral Resource Estimate and PEA were
previously announced in a news release dated September 12, 2023, with an effective date of the
Report of September 12, 2023. See
that news release or the 43-101 compliant technical report filed on
SEDAR on October 27, 2023 for
details, in addition to the following summary.
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 $9.02/oz AgEq
- Average annual production of 8 Million AgEq oz;
- Approximately half of LOM metal production is long hole
underground ("UG"), and approximately half is open pit ("OP")
mining.
Highlights of the updated Mineral Resource:
- Increase of 55% in Measured & Indicated Silver Equivalent
("AgEq") Ounces from initial January
2021 MRE, with 39% increase in Measured & Indicated AgEq
grade;
- Inclusion of 1.9 Million tonnes Measured & Indicated at
excellent grade of 516 g/t AgEq in underground Eagle
Deposit;
- Measured & Indicated Mineral Resource at LRS of 98.6
Million ounces AgEq grading 276 g/t AgEq contained in 11.1 Million
tonnes ("Mt");
- Increased confidence in MRE, with conversion of
approximately 9 Million ounces AgEq from initial January 2021 Inferred Mineral Resources to
Measured & Indicated, resulting in 13.6 Million ounces AgEq in
Inferred Mineral Resources at LRS grading 185 g/t AgEq contained in
2.3 Mt;
- Total Los Ricos Measured & Indicated Mineral Resources
of 186 Million ounces AgEq, including Los Ricos North
- Total Los Ricos Inferred Mineral Resources of 84 Million
ounces AgEq, including Los Ricos North
Table 2 – LRS PEA Key Economic Assumptions and
Results
|
Assumption /
Result
|
Unit
|
Value
|
|
Assumption /
Result
|
Unit
|
Value
|
|
Total OP Plant Feed
Mined
|
kt
|
9,367
|
|
Net Revenue
|
US$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$/oz
|
1,850
|
|
Average process
rate
|
t/day
|
3,359
|
|
Copper Price
|
US$/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
|
493.1
|
|
After-Tax
IRR
|
%
|
36.6
|
|
Payable
Copper
|
Mlb
|
13.6
|
|
Pre-Tax IRR
|
%
|
49.1
|
|
Payable AgEq
|
Moz
|
87.5
|
|
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.
|
Los Ricos South 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 12, 2023, which is
available on SEDAR. A summary of the Mineral Resource Estimate is
provided in Table 3.
Table 3: Los Ricos South Mineral Resource Estimate – Pit
Constrained and Out-of-Pit(1-9)
|
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
|
|
Pit - Cerro
C6
|
Inferred
|
0.9
|
0.72
|
31
|
0.01
|
1.12
|
88
|
20.9
|
905
|
0.2
|
32.8
|
2,568
|
|
Out-of-Pit7,8
|
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-Pit7,8
|
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
|
2.3
|
1.02
|
85
|
0.17
|
2.36
|
185
|
75.0
|
6,230
|
8.6
|
173.7
|
13,601
|
|
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.
|
Cerro Colorado Resource
constrained to open pit mining methods only; out-of-pit Mineral
Resources are restricted to the Eagle and Abra mineralized veins,
which exhibit historical continuity and reasonable potential for
extraction by cut and fill and longhole mining methods.
|
|
7.
|
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.
|
|
8.
|
AgEq and AuEq were
calculated at an Ag/Au ratio of 78.2:1 for pit constrained and
out-of-pit Resources.
|
|
9.
|
Totals may not sum due
to rounding.
|
Los Ricos North
During 2023, the Company completed an updated PEA at Los Ricos
North. For 2024, the Company will assess all technical and debt
financing proposals that may allow the continued advancement of the
project towards a construction decision, even during a potential
construction phase of Los Ricos South should a construction
decision be made on that project.
The highlights of the PEA were previously announced in a news
release dated May 17, 2023, and the
effective date of the Report is May 17,
2023. See that news release or the 43-101 compliant
technical report filed on SEDAR on June 30,
2023 for details, in addition to the following summary.
Highlights of the PEA, with a base case silver price of
US$23/oz and gold price of
US$1,800/oz are as follows (all
figures in US dollars unless otherwise stated):
- After-Tax NPV (using a discount rate of 5%) of
$413 Million with an After-Tax IRR of
29% (Base Case);
- 13-year mine life producing a total of 110.3 Million payable
silver equivalent ounces ("AgEq"), consisting of 68.0 Million
silver ounces, 221,700 gold ounces, 22.8 Million pounds of copper,
144.1 Million pounds of lead and 242.2 Million pounds of zinc;
- Initial capital costs of $221
Million, including $29 Million
in contingency costs, over an expected 18 month build, additional
expansion capital of $137 Million,
and sustaining capital costs of $6
Million over the life of mine ("LOM");
- Average LOM operating cash costs of $9.50/oz AgEq, and all in sustaining costs
("AISC") of $9.68/oz AgEq
- Average annual production of 8.8 Million AgEq oz in years
one through twelve;
- Approximately 3/4 of LOM production is from four open pits
containing oxide mineralization and approximately 1/4 is from a
separate open pit which contains only sulphide mineralization.
Table 4 – Los Ricos North PEA Key Economic Assumptions and
Results
|
Assumption /
Result
|
Unit
|
Value
|
|
Assumption /
Result
|
Unit
|
Value
|
|
Total Oxide Feed
Mined
|
kt
|
25,557
|
|
Net Revenue
|
US$M
|
2,307
|
|
Total Sulphide Feed
Mined
|
kt
|
9,964
|
|
Initial Capital
Costs
|
US$M
|
221
|
|
Total Plant Feed
Mined
|
kt
|
35,521
|
|
Expansion and
Sustaining Capital Costs
|
US$M
|
143
|
|
Total Strip
Ratio
|
Ratio
|
6.0
|
|
Mining Costs
|
$/t Mined
|
2.07
|
|
Mine Life
|
Yrs
|
13
|
|
Mining Costs
|
$/t Plant
Feed
|
12.28
|
|
Average process
rate
|
t/day
|
8,000
|
|
Operating Cash
Cost
|
US$/oz AgEq
|
9.50
|
|
Silver Price
|
US$/oz
|
23.00
|
|
All in Sustaining
Cost
|
US$/oz AgEq
|
9.68
|
|
Gold Price
|
US$/oz
|
1,800
|
|
After-Tax NPV (5%
discount)
|
US$M
|
413
|
|
Copper Price
|
US$/lb
|
4.00
|
|
Pre-Tax NPV (5%
discount)
|
US$M
|
645
|
|
Lead Price
|
US$/lb
|
1.00
|
|
After-Tax
IRR
|
%
|
29.1
|
|
Zinc Price
|
US$/lb
|
1.40
|
|
Pre-Tax IRR
|
%
|
39.8
|
|
Payable AgEq
|
Moz
|
110.3
|
|
After-Tax Payback
Period
|
Yrs
|
3.0
|
Table 5 – Los Ricos North PEA Summary of Physical
Attributes
|
Attribute
|
Unit
|
Oxide
|
Sulphide
|
Total
|
|
Plant Feed
Mined
|
kt
|
25,557
|
9,964
|
35,521
|
|
Silver
Grade1
|
g/t
|
83.2
|
30.1
|
68.3
|
|
Gold
Grade1
|
g/t
|
0.29
|
0.07
|
0.23
|
|
Copper
Grade1
|
%
|
-
|
0.12
|
-
|
|
Lead Grade
|
%
|
-
|
0.87
|
-
|
|
Zinc Grade
|
%
|
-
|
1.24
|
-
|
|
Silver
Recovery
|
%
|
87
|
88
|
87
|
|
Gold
Recovery
|
%
|
87
|
76
|
86
|
|
Copper
Recovery
|
%
|
-
|
89
|
89
|
|
Lead
Recovery
|
%
|
-
|
75
|
75
|
|
Zinc
Recovery
|
%
|
-
|
89
|
89
|
|
Payable
Silver
|
Moz
|
59.5
|
8.5
|
68.0
|
|
Payable Gold
|
koz
|
205.2
|
16.5
|
221.7
|
|
Payable
Copper
|
Mlb
|
-
|
22.8
|
22.8
|
|
Payable Lead
|
Mlb
|
-
|
144.1
|
144.1
|
|
Payable Zinc
|
Mlb
|
-
|
242.2
|
242.2
|
|
Payable AgEq
|
Moz
|
75.5
|
34.8
|
110.3
|
|
1. Grades shown
are LOM average plant feed grades. Dilution of approximately
10% was used.
|
Los Ricos North – Mineral Resource Estimate
The basis for the PEA is the Mineral Resource Estimate completed by
P&E in the National Instrument 43-101 Technical Report on the
Initial Mineral Resource Estimate for the Los Ricos North Project
located in Jalisco State, Mexico,
which has an effective date of December 1,
2021. A summary of the Mineral Resource Estimate is provided
in Table 6.
Table 6: Los Ricos North Mineral Resource Estimate
(1-11)
|
Deposit
|
Tonnes
|
Average
Grade
|
Contained
Metal
|
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
AuEq
|
AgEq
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
AuEq
|
AgEq
|
|
(Mt)
|
(g/t)
|
(g/t)
|
( %)
|
( %)
|
( %)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
(Mlb)
|
(Mlb)
|
(Mlb)
|
(koz)
|
(koz)
|
|
Indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
El Favor
|
7.7
|
0.27
|
98
|
-
|
-
|
-
|
1.61
|
119
|
68
|
24,413
|
-
|
-
|
-
|
399
|
29,454
|
|
Casados
|
3.2
|
0.42
|
124
|
-
|
-
|
-
|
2.09
|
154
|
43
|
12,871
|
-
|
-
|
-
|
218
|
16,061
|
|
La Trini
|
3.1
|
0.54
|
74
|
-
|
-
|
-
|
1.54
|
114
|
54
|
7,428
|
-
|
-
|
-
|
155
|
11,424
|
|
Mololoa
|
0.4
|
0.36
|
130
|
-
|
-
|
-
|
2.12
|
157
|
5
|
1,788
|
-
|
-
|
-
|
29
|
2,161
|
|
Silver-Gold
Oxide Zone
|
14.5
|
0.37
|
100
|
-
|
-
|
-
|
1.71
|
127
|
171
|
46,500
|
-
|
-
|
-
|
801
|
59,100
|
|
El Orito Sulphide
Zone1
|
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
|
22.3
|
|
|
|
|
|
1.66
|
122
|
186
|
53,510
|
|
|
|
1,190
|
87,808
|
|
Inferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
El Favor
|
12.4
|
0.27
|
89
|
-
|
-
|
-
|
1.47
|
108
|
106
|
35,505
|
-
|
-
|
-
|
587
|
43,350
|
|
Casados
|
1.8
|
0.35
|
108
|
-
|
-
|
-
|
1.82
|
135
|
21
|
6,323
|
-
|
-
|
-
|
106
|
7,843
|
|
La Trini
|
0.1
|
0.43
|
108
|
-
|
-
|
-
|
1.89
|
139
|
1
|
201
|
-
|
-
|
-
|
4
|
260
|
|
Mololoa
|
0.7
|
0.39
|
94
|
-
|
-
|
-
|
1.66
|
122
|
9
|
2,102
|
-
|
-
|
-
|
37
|
2,739
|
|
Silver-Gold
Oxide Zone
|
15.0
|
0.28
|
91
|
-
|
-
|
-
|
1.52
|
112
|
136
|
44,131
|
-
|
-
|
-
|
734
|
54,191
|
|
El Orito Sulphide
Zone1
|
5.5
|
0.06
|
28
|
0.12
|
0.74
|
1.20
|
1.46
|
108
|
11
|
4,888
|
15
|
90
|
146
|
258
|
19,007
|
|
Total
Inferred
|
20.5
|
|
|
|
|
|
1.51
|
111
|
148
|
49,019
|
|
|
|
992
|
73,198
|
|
1.
|
El Orito is a
silver-base metal sulphide zone, all other deposits are silver-gold
oxide zones.
|
|
2.
|
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.
|
|
3.
|
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.
|
|
4.
|
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
(2014) prepared by the CIM Standing Committee on Reserve
Definitions and adopted by the CIM Council and CIM Best Practices
(2019).
|
|
5.
|
Historically mined
areas were depleted from the Mineral Resource model.
|
|
6.
|
Approximately 98.9% of
the Indicated and 91.3% of the Inferred contained AgEq ounces are
pit constrained, with the remainder out-of-pit. See tables 4 and 6
for details of the split between pit constrained and out-of-pit
deposits.
|
|
7.
|
The pit constrained
AgEq cut-off grade of 29 g/t Ag was derived from US$1,550/oz Au
price, US$21/oz Ag price, US$3.66/lb Cu, US$0.90/lb Pb, US$1.26/lb
Zn, 93% process recovery for Ag and Au, 90% process recovery for
Cu, 80% process recovery for Pb and Zn, US$18/tonne process and
G&A cost. The constraining pit optimization parameters were
US$2.00/t mineralized mining cost, US$1.50/t waste mining cost and
50-degree pit slopes.
|
|
8.
|
The out-of-pit AuEq
cut-off grade of 119 g/t Ag was derived from US$1,550/oz Au price,
US$21/oz Ag price, US$3.66/lb Cu, US$0.90/lb Pb, US$1.26/lb Zn, 93%
process recovery for Ag and Au, 90% process recovery for Cu, 80%
process recovery for Pb and Zn, US$57/t mining cost, US$18/tonne
process and G&A cost. The out-of-pit Mineral Resource grade
blocks were quantified above the 119 g/t AgEq cut-off, below the
constraining pit shell within the constraining mineralized
wireframes and exhibited sufficient continuity to be considered for
cut and fill and longhole mining
|
|
9.
|
No Mineral Resources
are classified as Measured.
|
|
10.
|
AgEq and AuEq
calculated at an Ag/Au ratio of 73.8:1.
|
|
11.
|
Totals may not agree
due to rounding
|
Los Ricos District – Combined
Mineral Resource Estimate
The Los Ricos District, including both Los Ricos North and Los
Ricos South, has a combined 186 million measured & indicated
silver equivalent ounces and 84 million inferred silver equivalent
ounces in Mineral Resource Estimates. See Figure 1 and Table 7
below for details.
Table 7: 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
|
2.3
|
1.02
|
85
|
0.17
|
-
|
-
|
2.36
|
185
|
75
|
6,230
|
9
|
-
|
-
|
174
|
13,601
|
|
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
|
22.8
|
|
|
|
|
|
1.59
|
119
|
222
|
55,249
|
24
|
90
|
146
|
1,166
|
86,799
|
|
1.
|
See Table 3 notes for
assumptions
|
|
2.
|
See Table 6 notes for
assumptions
|
|
3.
|
AgEq and AuEq
calculated at an Ag/Au ratio of 87.5.
|
|
4.
|
Totals may not agree
due to rounding.
|
Mr. Robert Harris, P.Eng. is the qualified person as
defined by National Instrument 43-101 and is responsible for the
technical information of this release related to Parral.
Mr. David Duncan, P. Geo. is the
qualified person as defined by National Instrument 43-101 and is
responsible for the technical information of this release related
to Los Ricos North and Los Ricos South.
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 mine 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 Parral tailings project, the Los Ricos project, future
operating margins, future production and processing, and future
plans and objectives of GoGold, 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 the 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.