GoGold Intersects 5.4m of 923 g/t Silver Equivalent at Rascadero and Accelerates Warrant Expiry Date
GoGold Intersects 5.4m of 923 g/t Silver
Equivalent at Rascadero and Accelerates
Warrant Expiry Date
Shares Outstanding: 223,218,046
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
July 22, 2020
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
is pleased to release the assay results from 6 diamond drill holes at
the Los Ricos South Project, including 2 at Rascadero, 2 at
San Juan
, and the initial 2 at Las
Lamas.
Hole LRGG-20-192 was drilled on section 875N in the Rascadero area of the project and
intersected the Los Ricos quartz vein from
43.7m
to
63.7m
for
16.7m
of 368 g/t silver equivalent,
consisting of 1.32 g/t gold and 268 g/t silver. The intersect included
5.4m
of 923 g/t silver
equivalent.
"The Rascadero area continues to return significant drill intercepts and the first holes into Las Lamas
warrant additional drilling," said
Brad Langille
, President and CEO. "We have passed the data cut-
off for the resource, as such these results will not be included in the initial resource, but we will
continue to drill at Los Ricos South which could add additional ounces prior to completion of a
preliminary economic assessment."
The initial two holes drilled at the Las Lamas area found mineralization, with hole LRGG-20-194
intercepting multiple sections of mineralized quartz vein near surface. These holes, although
moderate grade, indicate the surface structure has divided into three structures at depth, and
warrant additional drilling to potentially find enriched areas of the structures.
Detailed intersections are listed in Table 1, and the hole locations are shown in Table 2.
A longitudinal section summary of all the holes drilled at Los Ricos to date is available at
https://gogoldresources.com/images/uploads/files/2020_07_22_Long_Section.pdf
Warrant Expiry Acceleration
GoGold is accelerating the expiry date of the common share purchase warrants of the Company
("Warrants") issued pursuant to the financing of the Company that closed on
February 25, 2020
and
governed by the warrant indenture dated
February 25, 2020
(the "Warrant Indenture").
"The results achieved at Los Ricos and Parral have advanced the Company's market price to the
trigger point for acceleration of the Warrants. The exercise of the
85 cent
(Canadian Dollar)
Warrants are expected to bring up to
$11M USD
to the Company's treasury. These funds, in
addition to the current cash balance of approximately
$17M USD
, and cash flow generation from the
Parral operations, put the Company in a well financed position to execute on our Los Ricos district,"
said Langille.
Pursuant to the terms of the Warrant Indenture and the certificates evidencing the Warrants (the
"Warrant Certificates"), in the event that the volume weighted average price of the issued and
outstanding common shares of the Company (the "Common Shares") is equal to or greater than
$1.20
per Common Share for any period of 10 consecutive trading days (the "Acceleration Trigger"),
the Company may, at its option within five (5) calendar days following such period, elect to
accelerate the expiry of the Warrants by providing notice to the holders thereof, in which case the
Warrants will expire on the date that is specified in the notice, which shall be not less than thirty (30)
calendar days following the delivery of such notice.
The Company confirms that as of the close of markets on
July 21, 2020
, an Acceleration Trigger
had occurred. In accordance with the terms of the Warrant Indenture and the Warrant Certificates,
notice of the Acceleration Trigger will be sent to Warrant holders. The Company confirms that the
Warrants shall expire at
5:00 p.m.
(Toronto Time) on
August 31, 2020
(the "Early Expiry Date"). Any
Warrants remaining unexercised after the Early Expiry Date will be cancelled.
Table 1: Drill Hole Intersections
Hole ID
Area
Section
From
To
Length
1
Au
Ag
AuEq
2
AgEq
2
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
(g/t)
LRGG-20-190
Rascadero
925N
46.5
54.5
8.0
0.25
59.1
1.04
77.7
LRGG-20-192
Rascadero
3
875N
43.7
63.7
16.7
1.32
268.2
4.90
367.5
including
52.2
57.5
5.4
3.33
672.9
12.30
922.5
LRGG-20-193
San Juan
975N
322.5
344.0
21.5
0.21
26.5
0.57
42.5
including
335.0
339.0
4.0
0.62
32.4
1.05
78.5
LRGG-20-194
Las Lamas
1175S
41.3
44.0
2.7
0.33
18.6
0.58
43.6
and
58.0
61.9
3.9
0.38
24.3
0.70
52.8
and
78.9
86.5
7.7
0.45
65.3
1.32
99.2
LRGG-20-195
Las Lamas
1175S
94.4
100.5
6.1
0.12
23.1
0.43
31.9
LRGG-20-196
San Juan
1000N
305.1
314.0
8.9
0.80
31.4
1.22
91.3
1. Not true width
2. AuEq and AqEq converted using a silver to gold ratio of 75:1
3. Excluding 3.3m of open stopes from historical underground workings.
Table 2: Drill Hole Locations
Hole ID
Easting
Northing
Elevation
Azimuth
Dip
Length
LRGG-20-190
925N
610310
2328165
1351
50
-45
LRGG-20-192
875N
610339
2328124
1339
50
-45
LRGG-20-193
950N
610012
2327948
1323
50
-65
LRGG-20-194
1175S
611638
2326538
1059
50
-50
LRGG-20-195
1175S
611638
2326538
1059
50
-75
LRGG-20-196
1000N
610017
2328024
1333
50
-70
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.
Procedure, Quality Assurance / Quality Control and Data Verification
The diamond drill core (HQ size) is geologically logged, photographed and marked for sampling.
When the sample lengths are determined, the full core is sawn with a diamond blade core saw with
one half of the core being bagged and tagged for assay. The remaining half portion is returned to
the core trays for storage and/or for metallurgical test work.
The sealed and tagged sample bags are transported to the ActLabs facility in
Zacatecas, Mexico
.
ActLabs crushes the samples and prepares 200-300 gram pulp samples with ninety percent passing
Tyler 150 mesh (106μm). The pulps are assayed for gold using a 50-gram charge by fire assay
(Code 1A2-50) and over limits greater than 10 grams per tonne are re-assayed using a gravimetric
finish (Code 1A3-50). Silver and multi-element analysis is completed using total digestion (Code 1F2
Total Digestion ICP). Over limits greater than 100 grams per tonne silver are re-assayed using a
gravimetric finish (Code 8-Ag FA-GRAV Ag).
Quality assurance and quality control ("QA/QC") procedures monitor the chain-of-custody of the
samples and includes the systematic insertion and monitoring of appropriate reference materials
(certified standards, blanks and duplicates) into the sample strings. The results of the assaying of
the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. All
results stated in this announcement have passed GoGold's QA/QC protocols.
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.
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 exploration project
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,
communication with warrantholders, 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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http://www.newswire.ca/en/releases/archive/July2020/22/c7056.html
%SEDAR: 00029249E
For further information:
please contact: Steve Low, Corporate Development, GoGold Resources,
T: 416 855 0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 08:00e 22-JUL-20