GoGold Announces Initial Mineral Resource Estimate at Los Ricos South
GoGold Announces Initial Mineral Resource
Estimate at Los Ricos South
Shares Outstanding: 224,126,309
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
July 29, 2020
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX:
GLGDF)
("GoGold", "the Company")
is pleased to announce their Initial Mineral Resource
Estimate for their Los Ricos South Project located in Jalisco State, Mexico. In addition, the
Company has updated the Mineral Reserve at the Parral Tailings operation, and the Mineral
Resource Estimate at its Esmerelda Tailings Project located near Parral.
Figure 1 – A Visualization of the Block Model (CNW Group/GoGold Resources Inc.)
Highlights of the Mineral Resource Estimate and Mineral Reserve:
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 Resource at Los Ricos South of 19.9 million ounces AgEq grading 190 g/t AgEq
contained in 3.3 Mt
Total Company Measured & Indicated Mineral Resources of 108.6 million ounces AgEq
Proven & Probable Mineral Reserve at Parral of 31.6 million ounces AgEq grading 64 g/t AgEq
contained in 15.4 Mt
Measured & Indicated Mineral Resource at Esmerelda of 13.3 million ounces AgEq grading 72
g/t AgEq contained in 5.7 Mt
Los Ricos South Mineral Resource is amenable to both open pit and bulk underground mining
methods
Los Ricos South Mineral Resource Estimate will form the basis of a Preliminary Economic
Assessment ("PEA") expected to be completed by the end of 2020
Inferred out of pit grades range from 355 g/t AgEq to 512 at higher cut-off rates, as per Table
3.
"This initial Mineral Resource Estimate demonstrates Los Ricos South is a premium asset, in grade
and quantity of ounces. Our Mineral Reserve at Parral is generating cash flows that are being
reinvested into the Los Ricos district. Over the past 16 months, we have aggressively explored and
developed the Los Ricos South Mineral Resource, which we will base our PEA study upon.
Concurrently, we are accelerating our exploration effort on the Los Ricos North project where we
are drilling the first of multiple targets which we believe will highlight the potential of the entire Los
Ricos district," said
Brad Langille
, President and CEO. "Drilling is still underway at Los Ricos South
targeting the northern extensions and extensions at depth."
The effective date of these Mineral Resource and Mineral Reserve Estimates is
July 28, 2020
and a
Technical Report on Los Ricos will be filed on the Company's website and SEDAR within 45 days of
this news release. The pit constrained and out-of-pit Mineral Resources for Los Ricos South are
summarized below in Table 1, and cut-off sensitivities are provided in Tables 2 and 3. The Updated
Parral Mineral Reserve is summarized below in Table 4. The Updated Esmerelda Mineral Resource
is summarized below in Table 5. Table 6 summarizes the Company's total Mineral Resources.
Figure 1 is a visualization of the block model and is available at
https://gogoldresources.com/images/uploads/files/20200729_LRS_Resource.png
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 1.4 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 1.4 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.
Mineral Resource Estimate Methodology – Los Ricos South
A total of 286 drill holes totalling 39,409 metres were used in the Mineral Resource Estimate. The
nearest neighbour mean distance between drill hole collars is
24 m
.
P&E Mining Consultants Inc. ("P&E") collaborated with GoGold personnel to develop the
mineralization models, estimates, and reporting criteria for the Mineral Resources at Los Ricos.
Mineralization models were initially developed by GoGold and were reviewed and modified by P&E.
A total of five individual mineralized domains have been identified through drilling and surface
sampling. The modeled mineralization domains are constrained by individual wireframes based on a
0.40 g/t AuEq cut-off. The average true thickness of the modeled Los Ricos Domain is
15.3 m
. The
average true thickness of the modeled Rascadero Domain is
11.5 m
.
Mineralization wireframes were used as hard boundaries for the purposes of estimation.
A
5m
x
5m
x
5m
three-dimensional block model was used for the Mineral Resource Estimate. The
block model consists of estimated Au and Ag grades, estimated bulk density, classification criteria,
and a block volume inclusion percent factor. Au equivalent block grades were subsequently
calculated from the estimated Au and Ag grades.
Sample assays were composited to
1m
standard length composites. Au and Ag grades were
estimated using Inverse Distance Cubed weighting of between 4 and 12 composites, with a
maximum of 3 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.
A bulk density model was estimated from 592 measurements taken from drill hole core using Inverse
Distance Squared weighting.
Classification criteria were determined from observed grade and geological continuity as well as
variography. Measured Mineral Resources are informed by 4 or more drill holes within
30 m
;
Indicated Mineral Resources are informed by 3 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 2: Cut-off Sensitivities – Pit Constrained Mineral Resource
1
Cut-off
(AuEq)
Tonnes
Average Grade
Contained Metal
Pit Constrained
Au
Ag
AuEq
AgEq
Au
Ag
AuEq
AgEq
(g/t)
(Mt)
(g/t)
(g/t)
(g/t)
(g/t)
(koz)
(koz)
(koz)
(koz)
Measured
3.0
0.4
2.20
293
5.54
485
26
3,517
67
5,828
2.0
0.6
1.79
238
4.51
395
32
4,295
81
7,119
1.0
0.9
1.33
181
3.39
297
38
5,146
97
8,453
0.8
1.0
1.24
170
3.18
279
39
5,285
99
8,660
0.6
1.0
1.16
160
2.99
261
39
5,394
101
8,818
0.43
1.1
1.10
152
2.84
249
39
5,464
102
8,917
Indicated
3.0
1.8
2.33
270
5.42
474
131
15,250
306
26,741
2.0
3.1
1.74
209
4.13
361
174
20,866
413
36,107
1.0
6.0
1.17
145
2.83
248
227
28,104
548
47,950
0.8
6.9
1.06
133
2.58
225
236
29,578
574
50,240
0.6
8.0
0.95
121
2.33
204
244
30,943
597
52,275
0.43
8.7
0.89
113
2.18
191
247
31,681
610
53,330
Measured & Indicated
3.0
2.1
2.31
274
5.44
476
158
18,766
372
32,568
2.0
3.7
1.75
213
4.19
366
207
25,161
494
43,231
1.0
6.9
1.19
150
2.90
254
265
33,250
645
56,399
0.8
7.9
1.08
137
2.65
232
275
34,864
673
58,895
0.6
9.0
0.98
125
2.41
211
283
36,338
698
61,087
0.43
9.8
0.91
118
2.26
197
287
37,146
711
62,243
Inferred
3.0
0.2
1.83
246
4.64
406
12
1,598
30
2,635
2.0
0.4
1.38
181
3.44
301
20
2,613
50
4,355
1.0
1.5
0.96
93
2.02
177
47
4,553
99
8,691
0.8
1.8
0.88
85
1.85
162
51
4,905
107
9,388
0.6
2.1
0.81
78
1.69
148
54
5,215
114
9,946
0.43
2.3
0.75
73
1.58
138
56
5,421
118
10,296
1.
See Table 1 notes for assumptions
Table 3: Cut-off Sensitivities – Out-of-Pit Mineral Resource
1,2
Cut-off
(AuEq)
Tonnes
Average Grade
Contained Metal
Out-of-Pit
Au
Ag
AuEq
AgEq
Au
Ag
AuEq
AgEq
(g/t)
(Mt)
(g/t)
(g/t)
(g/t)
(g/t)
(koz)
(koz)
(koz)
(koz)
Indicated
3.0
0.1
1.69
281
4.90
429
3
565
10
864
2.5
0.1
1.56
243
4.34
379
4
663
12
1,036
2.0
0.1
1.35
201
3.65
319
6
818
15
1,296
1.8
0.2
1.23
185
3.35
293
6
907
16
1,434
1.6
0.2
1.12
169
3.05
267
7
1,008
18
1,592
1.39
0.2
1.02
154
2.78
243
7
1,114
20
1,759
Inferred
3.0
0.4
2.04
334
5.86
512
24
3,886
68
5,963
2.5
0.5
1.77
293
5.12
448
27
4,466
78
6,832
2.0
0.7
1.38
233
4.05
355
33
5,616
98
8,528
1.8
0.9
1.21
209
3.60
315
37
6,360
110
9,588
1.6
1.1
1.09
191
3.27
286
40
7,015
120
10,526
1.39
1.4
0.98
173
2.96
259
44
7,726
132
11,548
1.
See Table 1 notes for assumptions
2.
No Mineral Resources are categorized as Measured in the out-of-pit area.
Parral & Esmerelda
In addition to announcing the Initial Mineral Resource Estimate at Los Ricos South, the Proven &
Probable Mineral Reserve at Parral was updated to reflect the mining of material since the Project's
inception, as well as for updated gold and silver pricing consistent with that of Los Ricos South's.
The Updated Mineral Reserve at Parral resulted in a positive reconciliation of 14% on tonnage and
27% on AgEq ounces.
The Mineral Resource Estimate for the Esmerelda Project was updated as well based on the
updated metal pricing, which resulted in an increase of 6% on AgEq ounces.
Table 4: Proven & Probable Mineral Reserves – Parral
(1-3)
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)
Proven
8.7
0.34
32.4
0.71
62
95
9,088
199
17,480
Probable
6.7
0.35
34.8
0.74
66
75
7,483
159
14,106
Total
15.4
0.34
33.4
0.72
64
171
16,570
358
31,585
1.
Mineral Reserves have demonstrated economic viability. The estimate of Mineral Reserves may be materially affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing or other relevant issues.
2.
The Mineral Reserves in this press 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.
3.
The Mineral Reserve in this estimate are based on US$1,400/oz Au, US$16/oz Ag, operating costs of US$9.95/t and Au and Ag process recoveries of 65% resulting in a
AuEq cut-off grade of 0.34g/t, calculated at an Ag/Au ratio of 87.5:1.
Table 5: Mineral Resource Estimate – Esmerelda
(1-3)
Category
Area
Tonnes
Average Grade
Contained Metal
Au
Ag
AgEq
Au
Ag
AgEq
(Mt)
(g/t)
(g/t)
(g/t)
(koz)
(koz)
(koz)
Measured
Upper
3.07
0.24
64
85
23.5
6,339
8,395
Lower
2.60
0.29
32
57
24.6
2,646
4,799
Total
5.67
0.26
49
72
48.1
8,985
13,194
Indicated
Upper
0.01
0.18
62
78
-
12
14
Lower
0.05
0.22
46
65
0.3
68
97
Total
0.05
0.00
48
67
0.3
80
112
Measured & Indicated
Total
5.72
0.26
49
72
48.4
9,065
13,305
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, sociopolitical, marketing or other relevant issues.
2.
The Mineral Resources in this press 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.
3.
The Mineral Resource in this estimate are based on US$1,400/oz Au, US$16/oz Ag, operating costs of US$10.14/t and Au and Ag process recoveries of 50% resulting in a
AgEq cut-off grade of 41 g/t, calculated at an Ag/Au ratio of 87.5:1.
Table 6: Company Wide Mineral Resources
Project
Classification
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)
Los Ricos South
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
Parral
Measured
1
8.7
0.34
32
0.71
62
95
9,088
199
17,480
Indicated
1
6.7
0.35
35
0.74
66
75
7,483
159
14,106
Measured & Indicated
1
15.4
0.34
33
0.72
64
171
16,570
358
31,585
Esmerelda
Measured
5.67
0.26
49
0.82
72
48
8,985
151
13,194
Indicated
0.05
0.00
48
0.77
67
0.3
80
1
112
Measured & Indicated
5.72
0.26
49
0.82
72
48
9,065
152
13,305
Total
Measured
15.5
0.37
47
0.91
80
182
23,537
452
39,591
Indicated
15.6
0.66
80
1.57
138
328
40,151
786
68,983
Measured & Indicated
31.1
0.51
64
1.24
109
512
63,688
1,238
108,567
Los Ricos South
Inferred
3.3
0.88
112
2.17
190
93
11,781
227
19,884
1.
Mineral Reserves are a subset of Mineral Resources
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 project,
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.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/July2020/29/c4601.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 08:29e 29-JUL-20