GoGold Announces Filing of Technical Report for Los Ricos South and Expanded Surface Rights Agreement
GoGold Announces Filing of Technical Report
for Los Ricos South and Expanded Surface
Rights Agreement
Shares Outstanding: 229,370,937
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
Aug. 25, 2020
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX:
GLGDF)
("GoGold", "the Company")
is pleased to announce the filing of a National Instrument 43-
101 Technical Report (the "Report") on the Initial Mineral Resource Estimate for their Los Ricos
South Project located in Jalisco State, Mexico. The highlights of the Report were previously
announced in a news release dated
July 29, 2020
, and the effective date of the Report is
July 28,
2020
.
Highlights of the Mineral Resource Estimate:
Measured & Indicated Mineral Resource at Los Ricos South of 63.7 million ounces silver
equivalent ("AgEq") grading 199 g/t AgEq contained in 10.0 million tonnes ("Mt")
Inferred Mineral Resource at Los Ricos South of 19.9 million ounces AgEq grading 190 g/t
AgEq contained in 3.3 Mt
Los Ricos South Mineral Resource is potentially amenable to both open pit and bulk
underground mining methods
"Beyond some additional Mineral Resource drilling, we see the next steps at Los Ricos South, in
conjunction with our primary technical consultant P&E Mining Consultants Inc., as being a Preliminary
Economic Assessment ("PEA"), which we will endeavour to complete before year's end," said
Brad
Langille
, President and CEO. "We're also pleased to announce the signing of a more robust surface
rights agreement which, in addition to exploration, includes provisions for exploitation and mining at
Los Ricos South."
The Report is available on the Company's website and SEDAR. The pit constrained and out-of-pit
Mineral Resource Estimate for Los Ricos South are summarized below in Table 1.
Surface Rights Agreement
The
Ejido
of
Cinco Minas
owns the surface rights over the majority of the Los Ricos South
concessions including all of those within the Mineral Resource Estimate. On
August 9, 2020
, the
Ejido
of
Cinco Minas
signed an agreement with the Company for a period of 12 years with an
additional 12 year renewal period. The agreement gives access to enter and carry out exploration
and exploitation work on 1280 hectares at the Los Ricos South Project, which covers the above
mentioned Mineral Resource. The details, including a surface concession map and terms, are
included in the Report.
Table 1: Los Ricos South Mineral Resource Estimate – Pit Constrained and Out-of-Pit
(1-8)
Mining
Method
Category
Tonnes
Average Grade
Contained Metal
Au
Ag
AuEq
AgEq
Au
Ag
AuEq
AgEq
(Mt)
(g/t)
(g/t)
(g/t)
(g/t)
(koz)
(koz)
(koz)
(koz)
Pit Constrained
5
Measured
1.1
1.10
152
2.84
249
39
5,464
102
8,917
Indicated
8.7
0.89
113
2.18
191
247
31,681
610
53,330
Measured & Indicated
9.8
0.91
118
2.26
197
287
37,146
711
62,243
Inferred
2.3
0.75
73
1.58
138
56
5,421
118
10,296
Out-of-Pit
6,7
Indicated
0.2
1.23
185
3.35
293
6
907
16
1,434
Inferred
0.9
1.21
209
3.60
315
37
6,360
110
9,588
Total
Measured
1.1
1.10
152
2.84
249
39
5,464
102
8,917
Indicated
8.8
0.89
115
2.20
193
253
32,588
626
54,765
Measured & Indicated
10.0
0.91
119
2.27
199
293
38,053
728
63,677
Inferred
3.3
0.88
112
2.17
190
93
11,781
227
19,884
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 AuEq cut-off grade of 0.43 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, US$18/tonne process and G&A
cost. The constraining pit optimization parameters were $2.00/t mineralized mining cost, 1.50/t waste mining cost and 50-degree pit slopes.
6.
The out-of-pit AuEq cut-off grade of 1.8 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, $40/t mining cost, US$18/tonne process
and G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.8 g/t AuEq 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.
No out-of-pit Mineral Resources are categorized as Measured.
8.
AgEq and AuEq calculated at an Ag/Au ratio of 87.5:1.
Qualified Persons
The independent Qualified Person for the Mineral Resource and Mineral Reserve disclosure for the
project is
Eugene Puritch
, P.Eng., FEC, CET, President of P&E, who has reviewed and approved
the technical contents of this release. Mr.
David Duncan
, P. Geo. is the Qualified Person for GoGold
as defined by National Instrument 43-101 and is responsible for the technical information of this
news release.
Los Ricos Exploration Projects
The Company's two exploration projects at its Los Ricos property are in
Jalisco
state, Mexico. The
South Project began in
March 2019
and includes the 'Main' area, which is focused on drilling around
a number of historical mines including
El Abra
, El Troce,
San Juan
, and Rascadero. The South
Project also includes the
Cerro Colorado
, Las Lamas and East Vein targets. The North Project was
launched in
March 2020
and includes drilling at the Monte del Favor, Salomon, La Trini, and Mololoa
targets.
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
.
About P&E Mining Consultants Inc.
P&E Mining Consultants Inc., established in 2004, provides geological and mine engineering
consulting reports, Mineral Resource Estimate Technical Reports, Preliminary Economic
Assessments and Pre-Feasibility Studies. In addition, they are affiliated with major
Toronto
based
consulting firms for the purposes of joint venturing on Feasibility Studies. Their experience covers
over 350 NI 43-101 Technical Reports on diamonds, most metallic deposits including gold, silver,
base metals, PGM and iron for both open pit and underground deposits.
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 South and
North projects, communication with warrant holders, 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 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.
SOURCE
GoGold Resources Inc.
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For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 09:10e 25-AUG-20