GoGold Receives Further Positive Metallurgical Results on Los Ricos South Deposit and Updates Pre-Feasibility Activity
GoGold Receives Further Positive Metallurgical Results on Los Ricos
South Deposit and Updates Pre-Feasibility Activity
Shares Outstanding: 295,258,056
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
May 18, 2022
/CNW/ - GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
is pleased to announce further
positive results of the metallurgical testing of the Los Ricos South ("LRS") deposit. GoGold is also pleased to update on on-going Pre-Feasibility ("PFS") studies
of the LRS project.
The PFS optimization test work program has been completed independently at SGS Laboratories located in
Lakefield, Ontario, Canada
on HQ core samples. The
program was to further develop data for the project to enhance the previously reported Preliminary Economic Assessment ("PEA") to a PFS level of report.
"Since acquiring the Los Ricos district in
March 2019
, we've focused on moving forward with the projects in three key areas. The first area of focus has been
resource definition and expansion through our drilling and exploration programs in the district. The second area of focus has been on engineering and technical
reports ultimately leading towards a construction decision. The third area of focus has been on consolidation of mineral concessions within the district, expanding
from the initial 29 to the current 44 concessions," said
Brad Langille
, President and CEO. "As outlined in this release, we are very pleased with the advancement
of engineering towards the PFS in Los Ricos South, and the growth in resource ounces as defined in our last resource update. Also, we cannot overlook the
success of our consolidation efforts in the district of which potentially more strategic opportunities may present themselves."
The objectives of the program were to develop comminution data to confirm the grindability characteristics of the ore as well as obtain metallurgical data to
optimize the recovery of gold, silver, and the benefits of SART technology as it relates to cyanide regeneration and a saleable copper product. As described in the
PEA, the regeneration of cyanide through the SART process will greatly reduce process operating cost. The metallurgical processes carried out were whole ore
cyanide leaching, Merrill Crowe zinc precipitation, and SART copper sulfide production and cyanide recovery. The envisioned SART plant is similar to that
currently in operation at the Company's Parral project.
The results generated from the test program allowed for further development of the process design criteria, major equipment design and capital costing. The
design included but was not limited to the associated crushing, milling (SAG, ball mill, and pebble crusher), leaching, thickening, and pre-leach and final tailings
filtration. The work also allowed for development and submission of technical requirements for LRS permitting.
Highlights of the metallurgical test program follow:
Optimized leach test work returned 82 to 88% and 92 to 97% for silver and gold recovery, respectively.
The optimized conditions encompassed a 96-hour leach period to maximize silver recovery, four hours of pre-aeration, 2 g/l of sodium cyanide and a nominal
grind of 80% passing 75 microns.
Comminution testing confirmed the grinding characteristics of the ore, as medium to moderately hard.
Merrill Crowe (zinc precipitation) testing determined that gold and silver was efficiently precipitated out of the pregnant solution under optimum conditions.
SART testing on the Merrill Crowe barren solution determined that the WAD (weak acid dissociable) cyanide is fully converted to free cyanide and
recoverable. Copper recovery was in excess of 90%.
Modified acid/base (ABA) showed the solids are non-acid generating and have a net acid consumption potential. Net acid generation (NAG) testing results
also showed the samples were non-acid generating and have a net acid consumption potential.
The following is an update on specific LRS PFS activities:
PFS testing complete with development of final process design criteria underway
Major equipment sized and quotes received to finalize capital costs.
Process flow diagrams completed.
Site Work – crusher and plant locations have been relocated from the PEA to a more strategic location and minimize construction directs costs. Preliminary
layouts complete.
Power – main power for the LRS project will be via a take-off of an existing 115kV line routed 14 km to the project site. Associated capital and operating
costs have been obtained. This planned take-off has been changed from the PEA .
Water – final water balance underway based on the test work. Water source will be from a near-by dam located 3.5 km from the project site.
David J. Salari
, P.Eng.
of D.E.N.M Engineering Ltd is a Qualified Person as defined under National Instrument 43-101. Mr. Salari has reviewed and approved the
scientific and technical information in this press release.
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/decks/10437
and on the Company's website at:
www.gogoldresources.com
.
Los Ricos District Exploration Projects
The Company's two exploration projects at its Los Ricos property are in
Jalisco
state,
Mexico
. The Los Ricos South Project began in
March 2019
and an initial
resource was announced on
July 29, 2020
which indicated a Measured & Indicated Mineral Resource of 63.7 million ounces AgEq grading 199 g/t AgEq contained
in 10.0 million tonnes, and an Inferred Resource of 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 million tonnes. An initial PEA on the project
was announced on
January 20, 2021
indicating an NPV
5%
of
US$295M
.
The Los Ricos North Project was launched in
March 2020
and includes drilling at the El Favor, La Trini, Mololoa, Casados and El Orito targets. The Company is
expecting to release its initial resource estimate on the Project in late 2021, and has a drill program for an additional 100,000 metres of drilling for 2022 in place.
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
.
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 Los Ricos South and North projects, and future plans and objectives
of GoGold, including the intention to undertake further exploration at Los Ricos North, and the prospect of further discoveries there, 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.
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SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/May2022/18/c7111.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 07:30e 18-MAY-22