GGD.TO · 2025-02-28 12:00:00

GoGold Announces Filing of Los Ricos South Feasibility Study Technical Report

Resource Estimates Technical Reports (NI 43-101) Economic Studies

GoGold Announces Filing of Los Ricos South

Feasibility Study Technical Report

Halifax, Nova Scotia--(Newsfile Corp. - February 28, 2025) -

GoGold Resources Inc. (TSX: GGD)

(OTCQX: GLGDF) ("GoGold", "the Company")

is pleased to announce the filing of a National

Instrument 43-101 Feasibility Study ("FS") Technical Report ("the Report") at its Los Ricos South

("LRS") Project located in Jalisco State, Mexico.

The FS includes a re-engineered 2,000 tonne per day

underground mine plan compared to the Preliminary Economic Assessment ("PEA") which was

released in September 2023 and incorporates an updated Mineral Resource Estimate ("MRE").

The

Report is available on SEDAR+ and at

www.gogoldresources.com

Highlights of the FS, with a silver price of US$26.80/oz, gold price of US$2,330/oz and copper price of

US$4.00/lb ("Base Case") 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$355 million with an After-

Tax IRR of 28% (Base Case);

At approximate spot metal silver price of $30/oz and gold price of $2,608/oz, NPV (using a

discount rate of 5%) of US$469 million with an After-Tax IRR of 34%;

15-year mine life producing a total of 80 million payable silver equivalent ounces ("AgEq"),

consisting of 41 million silver ounces, 424 thousand gold ounces, and 11 million pounds of copper;

Initial capital costs of $227 million, including $21 million in contingency costs, over an expected two

year build, and sustaining capital costs of $100 million over the life of mine ("LOM");

Average operating cash costs of $9.94/oz AgEq, and all in sustaining costs ("AISC") of $11.19/oz

AgEq over first 5 years of production, with average AISC of $12.32/oz AgEq over the underground

mine life;

Average annual production of 7.3 million AgEq oz over first 5 years;

Successful conversion of Mineral Resources to Proven and Probable Mineral Reserves totalling

10.2 million tonnes grading 276 g/t AgEq containing 91 million ounces AgEq, including 7.5 million

underground tonnes grading 326 g/t AgEq;

Average underground mining width of 11 metres using bulk mining method of longitudinal sub-level

long-hole mining;

"With the filing of this highly detailed feasibility study, it highlights all the great work our technical team

has completed over the last 6 years starting with the initial discovery building to a very large silver-gold

resource. Now the Company finds itself in the position once our permit is in hand, to build our first mine

in the Los Ricos district.

This will be potentially followed by our second mine in Los Ricos North," said

Brad Langille, President and CEO.

"We also look forward to exploring more of the exciting exploration

potential in the district and the opportunity for future growth and prosperity for all stakeholders in the Los

Ricos projects."

Table 1 - LRS FS Underground Key Assumptions and Results

Assumption / Result

Unit

Value

Assumption / Result

Unit

Value

Total UG Ore Mined

7,512

UG Mining Costs

$/t Plant Feed

44.04

UG Silver Grade

g/t

170

Operating Cash Cost

$/oz AgEq

11.22

UG Gold Grade

g/t

1.65

All in Sustaining Cost

$/oz AgEq

12.32

UG AgEq Grade

g/t

326

Mine Life

Yrs

Silver Recovery

Average Mining Width

Gold Recovery

1. Grades shown are LOM average process plant feed grades including underground external dilution of approximately 18%.

2. The underground mining method is longitudinal sub-level long-hole mining.

3. AgEq includes gold converted at a ratio of 86.05:1 and copper % converted at a ratio of 103.4:1.

Table 2 - LRS FS Life of Mine Key Assumptions and Results

Assumption / Result

Unit

Value

Assumption / Result

Unit

Value

Total Plant Feed Mined

10,233

Net Revenue

2,099

Average process rate

t/day

2,000

Initial Capital Costs

227

Silver Recovery

Sustaining Capital Costs

100

Gold Recovery

Mining Costs

$/t Plant Feed

42.92

Silver Price

$/oz

26.80

Processing Costs

$/t Plant Feed

39.63

Gold Price

$/oz

2,330

General and Admin Costs

$/t Plant Feed

6.88

Copper Price

$/lb

4.00

Operating Cash Cost

$/oz AgEq

11.59

Payable Silver Metal

Moz

41.1

All in Sustaining Cost

$/oz AgEq

12.78

Payable Gold Metal

koz

423.6

After-Tax NPV (5% discount)

355

Payable Copper

Mlb

11.2

Pre-Tax NPV (5% discount)

553

Payable AgEq

Moz

79.9

After-Tax IRR

28.0

Mine Life

Yrs

Pre-Tax IRR

38.6

After-Tax Payback Period

Yrs

2.6

Figure 1 - LRS Cash Flow Profile by Year

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_001full.jpg

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 $26.80/oz silver price,

gold price of $2,330/oz and copper price of $4.00/lb.

As illustrated in the following sensitivity tables, the

Project remains robust even at lower commodity prices or with higher costs.

Figure 2 - LRS Process Plant Grade and Feed Tonnes Mined by Source

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_002full.jpg

The Project mine plan is primarily underground, with a 12 year underground mine life engineered,

followed by an open pit mine which begins in the 10

year.

Figure 3 - LRS Annual Production (AgEq oz ore feed) and AISC ($/oz AgEq) by Year

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_003full.jpg

Table 3 - LRS FS Gold and Silver Price Sensitivities

Sensitivity

Base

Case

Silver Price ($/oz)

26.80

Gold Price ($/oz)

1,739

1,913

2,087

2,330

2,608

2,869

3,130

After-Tax NPV (5%) ($M)

110

184

255

355

469

575

681

After-Tax IRR (%)

13.6

18.3

22.5

28.0

33.7

38.8

43.7

After-Tax Payback (years)

4.7

3.8

3.2

2.6

2.0

1.8

1.7

Table 4 - LRS FS Operating Cost and Capital Cost Sensitivities

Sensitivity

-20%

-10%

Base

Case

10%

20%

Operating Costs - NPV ($M)

440

399

355

317

275

Operating Costs - IRR (%)

32.6

30.6

28.0

26.3

24.1

Capital Costs - NPV ($M)

394

373

355

331

310

Capital Costs - IRR (%)

35.1

30.9

28.0

24.5

22.0

FS Summary

The LRS Project has been envisioned as an underground mining operation for the first ten years, with

contract underground mining supplying a 2,000 tonne per day process plant.

The FS was prepared by independent consultants P&E Mining Consultants Inc ("P&E") acting as lead

consultant and completing the MRE, Mineral Reserves, and mining.

Additional contributing consultants

and their roles were as follows:

Ausenco - Process plant & infrastructure

SGS Canada Inc.'s Lakefield office - Metallurgical

WSP - Underground and Open Pit Geotechnical

CIMA - Environmental

Paterson & Cooke - Paste backfill

BQE / D.E.N.M. Engineering - SART design & costing

BCG - Tailings geotechnical

Table 5 - LOM Capital Cost Estimate

Type

Initial

($k)

Sustaining

($k)

Total

($k)

Process Plant direct costs

83,544

10,223

93,767

Underground development

51,054

62,763

113,817

Open pit stripping

17,661

Infrastructure

38,558

EPCM

17,969

Project indirect costs

14,576

Total

205,701

90,647

296,348

Contingency (10%)

20,987

9,065

30,052

Grand Total

226,688

99,712

326,400

Table 6 - Operating Costs (Average LOM)

Operating Costs (Average LOM)

$/tonne

Plant Feed

$/tonne

Mined

Open Pit Mining

17.72

2.64

Underground Mining

49.92

Total LOM Mining

42.92

Processing ($/t processed)

39.63

General and Admin ($/t processed)

6.88

Total ($/t processed)

89.43

1. Bulk underground long hole mining.

$44.04 is the mining cost, $5.88 is cemented paste backfill, and additional development costs of $8.35/t

mined are included in sustaining capital in table 6, providing a total UG mining cost of $58.27/t.

2. Average LOM mining cost of both open pit and underground.

Mining

Contract underground mining will be completed using the longitudinal sub-level long-hole mining method

and cemented paste back filling of the mined-out stopes. Approximately 10% of the underground ore will

be sourced in close proximity to historical workings.

Figure 4 - Underground Mine Plan by Year

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_004full.jpg

Process Plant Design

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 recover cyanide back to the process

and to produce a saleable copper sulfide product.

The process plant will produce saleable silver-gold

doré bars and a copper precipitate.

Figure 5 - Process Plant Design

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_005full.jpg

Figure 6 - Mill Process Flow Sheet

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_006full.jpg

Metallurgy

In support of the feasibility study on the Los Ricos South deposits, an extensive metallurgical test

program was completed at SGS Lakefield on representative drill core from the deposit. The program

was designed to test and validate the key components of the process to confirm process plant

performance including:

Crushing and grinding

Thickening and filtration

Cyanide leaching and reagent consumptions

SART performance

Merrill Crowe (zinc precipitation)

Dry-stack tailings detoxification and dewatering (maximizing water recovery)

Based on the extensive program, and life of mine mill simulation, the process plant will use a

conventional whole ore leaching process and simple flow sheet to produce silver-gold doré bars and a

copper precipitate. The cyanide leaching process recoveries range from 92 to 93% for gold and 85 to

87% for silver. Approximately 70% of the copper was also leached.

Dewatered and detoxified tailings were tested at Paterson and Cook in Sudbury, Ontario to determine

the paste backfill cement addition rate for the underground mine and to minimize process water usage.

The advantages of using underground paste backfill include maximized stability of the mine and the

ability to store a majority of the process plant tailings as cemented paste underground, reducing surface

impact.

Infrastructure

The Company has an agreement in place with the Comision Federal de Electricidad ("CFE"), which has

secured an adequate power supply for LRS.

Electricity for the Project is sourced from the nearby La

Yesca hydroelectric dam.

Figure 7 - La Yesca Hydroelectric Dam

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/1683/242890_240c68d65466aaa7_007full.jpg

The Company has also secured the rights to the land where the process plant will be located.

Agreements were entered into with multiple farmers and stakeholders providing compensation for the

usage of the required land.

Agreements are also in place with the local Ejido which owns the surface

rights over all of those concessions included in this FS.

Mineral Reserves and Mineral Resource Estimate

The basis for the FS is an inaugural Proven and Probable Mineral Reserve estimate totalling 10.2 million

tonnes grading 276 g/t AgEq (145 g/t Ag, 1.39 g/t Au, and 0.10% Cu) containing 90.7 million ounces

AgEq (47.8 Moz Ag, 457 Koz Au, 23.8 Mlb Cu), reflecting the successful conversion of Mineral

Resources.

A summary of the Mineral Reserves is provided in Table 7 and an updated Mineral

Resource Estimate is provided in Table 8.

Table 7: Los Ricos South Mineral Reserve

(1-8)

Classification

Tonnage

Average Grade

Contained Metal

AgEq

(kt)

(g/t)

(%)

(g/t)

(koz)

(Mlb)

(koz)

Underground

Proven

3,902

187

1.61

0.09

334

23,472

202

7.5

41,939

Probable

3,611

152

1.70

0.18

318

17,647

197

14.6

36,895

Subtotal Underground

7,512

170

1.65

0.13

326

41,119

399

22.1

78,834

Open Pit

Proven

580

0.72

0.02

159

1,768

0.3

2,965

Probable

2,140

0.64

0.03

130

4,961

1.4

8,924

Subtotal Open Pit

2,720

0.66

0.02

136

6,728

1.7

11,889

Total

Proven

4,482

175

1.49

0.08

312

25,240

215

7.7

44,904

Probable

5,751

122

1.31

0.13

248

22,607

241

16.1

45,819

Total Proven & Probable

10,233

145

1.39

0.10

276

47,847

457

23.8

90,723

Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.

Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of

January 14, 2025.

Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.

Open Pit Mineral Reserves are based on metal prices of $23.75/oz Ag, $1,850/oz Au and $4.00/lb Cu, and are constrained within optimized pit

shells and designs that use 45-48º overall wall slopes, and process recoveries of 86% Ag, 95% Au and 51% Cu.

An Open Pit cut-off grade of 46.4 g/t AgEq is estimated to differentiate ore from waste and is based on cost assumptions of $26.22/t

processing, $4.11/t site general and administrative, and 0.5% government mining tax on net revenue. Mining costs are estimated at $2.10/t of ore

and waste rock.

Underground Mineral Reserves are based on metal prices of $23.75/oz Ag, $1,850/oz Au and $4.00/lb Cu, and are constrained within a mine

design, and use process plant recoveries of 86% Ag, 95% Au and 77% Cu.

An Underground marginal cut-off grade of 150 g/t AgEq is estimated to differentiate ore from waste, and is based on cost assumptions of

$34.93/t processing, $4.46/t site general and administrative, and mining costs of $41.93/t. An Underground economic cut-off grade of 210 g/t

AgEq is estimated to account for capital development costs of $53.86/t in addition to those used to calculate the marginal cut-off grade.

Totals may not sum due to rounding.

Table 8: Los Ricos South Mineral Resource Estimate - Pit Constrained and Out-of-Pit

(1-9)

Mining

Method