GoGold Provides Outlook for 2021
GoGold Provides Outlook for 2021
Shares Outstanding: 264,654,288
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
Dec. 30, 2020
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX:
GLGDF)
("GoGold", "the Company")
is pleased to provide an outlook of milestones and
deliverables for 2021.
"As we look forward to 2021, we feel the Company is on the verge of unlocking the significant
potential of Los Ricos to create value for the shareholders,"
Brad Langille
, President and CEO
stated. "The key milestones for the Company in 2021 will include.
a Preliminary Economic Assessment at Los Ricos South in January,
an aggressive 100,000 metre drill program at Los Ricos North focussed on discovery and,
an initial mineral resource at Los Ricos North in the summer of 2021.
Parral continues to generate strong cash flow sufficient to fund the overhead and exploration
allowing the Company to be a self funding junior with one of the largest exploration drill programs in
Mexico
. With our strong balance sheet which exceeds
US$55 million
in cash, we are well funded to
unlock the true value of Los Ricos."
Los Ricos South PEA
A preliminary economic assessment ("PEA") on the project is in the final stages and expected to be
released in
January 2021
. The Company released an initial Mineral Resource Estimate at Los Ricos
South on
July 29, 2020
, which included a Measured & Indicated Mineral Resource of 63.7 million
ounces silver equivalent ("AgEq") grading 199 g/t AgEq contained in 10.0 million tonnes ("Mt"), and
an inferred Resource of 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 Mt. Full
details of the Mineral Resource Estimate are included in Table 1 below.
The Company initially acquired the Los Ricos projects in March of 2019 and began the Los Ricos
South drilling program at that time. The Company was able to drill 222 holes totaling 33,600 metres
in 15 months from the acquisition date to the Resource date at Los Ricos South.
Table 1 – Los Ricos South Mineral Resource Estimate
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.
Los Ricos North
During 2020, GoGold's exploration team identified over 100 targets on the Los Ricos North
properties, demonstrating the significant exploration potential. The Company plans to drill 10 of
these targets as part of its 2021 drilling program which is planned to exceed 100,000 metres of
drilling and will be one of the largest in
Mexico
. The Company is working towards completing an
Initial Mineral Resource Estimate at Los Ricos North, which is expected to be released in 2021.
At Los Ricos North, which is approximately 20km from Los Ricos South, the Company began an
exploration drilling program on the project in March 2020. Since that time, the results of 82 drill
holes have been released at the La Trini and El Favor targets on the project, highlights of the drilling
results included Table 2 below.
Table 2 – Highlights of Drilling Results – Los Ricos North
Hole ID
3
Area
From
To
Length
1
Au
Ag
AuEq
2
AgEq
2
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
(g/t)
LRGT-20-003
La Trini
128.0
157.8
29.8
2.41
531.7
9.50
712.6
Including
137.5
142.0
4.5
12.83
3289.3
56.68
4,251.3
LRGT-20-004
La Trini
7.3
36.7
29.4
1.77
121.7
3.39
254.1
Including
12.2
21.0
8.8
5.11
286.3
8.93
669.7
LRGT-20-011
La Trini
12.2
34.7
22.5
1.37
158.3
3.49
261.4
including
13.6
30.7
17.2
1.80
194.8
4.39
329.6
LRGT-20-033
La Trini
13.9
35.7
21.8
2.73
130.3
4.47
335.2
including
18.4
24.0
5.6
9.40
365.4
14.27
1,070.3
LRGT-20-037
La Trini
34.8
65.8
31.0
1.50
94.6
2.76
207.2
including
38.7
49.8
11.2
3.67
165.3
5.87
440.4
LRGT-20-070
La Trini
55.6
117.0
61.4
1.06
124.0
2.72
203.7
Including
55.6
69.5
13.9
4.29
477.1
10.65
798.9
Including
61.1
64.5
3.4
14.28
1694.1
36.87
2,765.3
LRGF-20-001
El Favor
15.0
56.7
41.7
0.36
141.8
2.25
168.4
including
18.7
29.7
11.0
1.12
444.4
7.05
528.6
and
131.3
147.0
15.7
0.14
48.1
0.79
58.9
LRGF-20-006
El Favor
41.0
53.0
12.0
0.20
95.9
1.48
110.9
including
44.0
47.4
3.4
0.53
271.4
4.15
311.0
and
70.5
97.5
27.0
0.97
113.0
2.47
185.5
including
76.0
83.3
7.3
3.35
349.6
8.01
601.0
LRGF-20-008
El Favor
0.0
52.1
52.1
0.69
254.5
4.08
306.0
including
15.0
52.1
37.1
0.93
343.0
5.51
413.1
including
26.0
31.0
5.0
5.62
2052.0
32.98
2473.4
including
26.7
30.0
3.3
8.47
3039.5
49.00
3674.7
1.
Not true width
2.
AuEq and AqEq converted using a silver to gold ratio of 75:1
Concession Consolidation Program
Since the initial acquisition of the Los Ricos properties in
March 2019
, as part of an ongoing
concession consolidation program, GoGold has acquired 2 new concessions in the South and 11 in
the North. As of this press release, there are 13 concessions at Los Ricos South and 29 at Los
Ricos North for a total of 42 concessions.
Strong Balance Sheet
During the year, the Company completed two bought deal financings for net proceeds of
US$53
million
which significantly strengthened the balance sheet from a net book value of
US$73 million
on
September 30, 2019 to
US$171 million
on
September 30, 2020
, which included cash of
US$53
million
as compared to
US$2 million
in the prior year. The bought deal financings also allowed
additional institutional investors to join and strengthen the Company's shareholder register.
Parral
The Company's Parral mine, which has over eight years of remaining mineral reserves, had a record
year for production, revenue, and cash flow. Production increased by 29% over the previous year's
record, to 2.3 million silver equivalent ounces. In the quarter ended
September 30, 2020
Parral
generated
US$6.5 million
of free cash flow at a realized silver price of
$22.71
. At current metal
prices, Parral is generating sufficient free cash flow to fund all of the Company's general and
administrative costs, and exploration costs at the Los Ricos projects.
In July this year, GoGold updated the remaining Mineral Reserves at Parral, which resulted in a
positive reconciliation of 14% on tonnage and 27% on silver equivalent ounces.
Environmental, Social and Governance ("ESG")
GoGold's wholly owned subsidiary Grupo Coanzamex, SA de CV, which operates the Parral project,
was awarded an ESR (Empresa Socialmente Responsable) designation this year as a result of the
ESG processes and procedures in place at Parral. The Parral project is a partnership with the
Municipality of Parral, as the Company removes tailings from the center of the municipality that were
deposited from over 300 years of silver mining. This provides an environmentally friendly and
economic solution to the Municipality while also creating approximately 200 jobs in the area.
At Los Ricos, the Company is working with key stake holders in
Jalisco
, including multiple Ejidos
which own the surface rights on the property. The Company signed agreements with two Ejidos in
2020, which will ensure that the economic benefits of the development of the projects are shared
with the communities where they are operating, in addition to providing GoGold with the required
rights to move the projects forward.
The Company is currently in the process of completing an ESG report, which will be made available
on the GoGold website in 2021 after completion. This report will provide full detail on all of the ESG
processes in place by the Company.
VRIFY Slide Deck and 3D Presentation
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours
of remote mining assets, 3D models and interactive presentations. VRIFY can be accessed by
website and with the VRIFY iOS and Android apps.
Access the GoGold Company Profile on VRIFY at:
https://vrify.com
The VRIFY Slide Deck and 3D Presentation for GoGold can be viewed at:
https://vrify.com/explore/decks/9404
and on the Company's website at:
www.gogoldresources.com
.
Technical information contained in this news release with respect to GoGold has been reviewed and
approved by Mr.
David Duncan
, P.Geo., who is a qualified person for the purposes of NI 43-101.
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 mine, the Los Ricos South and
North projects, the timing and delivery of the preliminary economic assessment on Los Ricos South,
the delivery and timing of the initial mineral resource on Los Ricos North, the ability of Parral to
continue to deliver free cash flow, 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, the effects of the global COVID-19 pandemic, 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.
View original content:
http://www.prnewswire.com/news-releases/gogold-provides-outlook-for-2021-301199210.html
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/December2020/30/c8450.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources Inc., T: 416 855
0435, Email : [email protected] Or visit : www.gogoldresources.com
CO: GoGold Resources Inc.
CNW 08:30e 30-DEC-20