GoGold Reports Parral Production for Quarter Ending June 2023 and Reports on Planned Zinc Circuit
GoGold Reports Parral Production for Quarter Ending June 2023 and
Reports on Planned Zinc Circuit
Shares Outstanding: 326,301,011
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
July 12, 2023
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
is pleased to report production
for the quarter ending
June 30, 2023
of 375,112 silver equivalent ounces, consisting of 203,894 silver ounces, 1,512 gold ounces, and 135 tonnes of copper.
Proposed SART Zinc Circuit
The Company has completed bench scale and in-field heap leach testing that has demonstrated that an addition of a zinc circuit to the SART plant should
produce a saleable zinc product and more importantly regenerate cyanide that will greatly increase cash flow at our Parral operation over the next seven years
of mine life.
Summary of Zinc circuit effects:
Saleable zinc precipitate to be added to the revenue stream
Regeneration of approximately 750 tons of cyanide per quarter
Anticipated to generate net increased cash flows of
$1.5 million
per quarter
Zinc circuit capital expenditure estimated at
$2 million
over 6 month construction period
Project payback expected within 6 months after construction
Construction of zinc circuit is independent of current SART operations, therefore no interruption to current operations is expected
Parral up to end of its mine life will be a producer of silver, gold, copper and zinc
"During the quarter at Parral, we continued with our planned reprocessing of old pad material which resulted in further metal extraction plus reclamation of new
pad space which has the benefit of delaying further pad capital expenditure. In addition, we have been working on further optimization of the SART process to
generate an additional saleable metal (zinc) and more importantly, the regeneration and recycling of more cyanide which has the benefit of reducing the volume
of fresh cyanide required for purchase. Our expectation is the circuit will generate an additional
$1.5 million
in cash flows per quarter after the circuit is
completed," said Brad Langille, President and CEO. "Our main focus at GoGold is our flagship asset at Los Ricos. With that being said, we are now in our
tenth year of production at our Parral operation, with a remaining seven years ahead of us. The addition of a zinc circuit is another way that Parral can remain
a meaningful contributor of revenue over its remaining mine life. At Los Ricos South, our next objective is the completion of a revised mineral resource estimate
and updated preliminary economic assessment this summer."
Table 1: Quarterly Production Summary
Quarter Ended
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Silver Production (oz)
186,655
213,495
145,944
159,838
173,717
203,894
Gold Production (oz)
2,791
3,081
2,278
2,399
2,016
1,512
Copper Production (tonnes)
125
98
124
222
143
135
Silver Equivalent Production (oz)
1
455,991
509,796
400,467
441,217
400,145
375,112
1.
"Silver equivalent production" include gold ounces and copper tons produced and converted to a silver
equivalent based on a ratio of the average market metal price for each period. The gold:silver ratio for
each of the periods presented was: Mar 2022 – 77, June 2022 – 83, Sep 2022 – 90, Dec 2022 – 82, Mar
2023 – 84, Jun 2023 – 82. The copper:silver ratios were: Mar 2022 – 411, June 2022 – 415, Sep 2022 –
398, Dec 2022 – 377, Mar 2023 – 399, Jun 2023 – 352.
Mr.
Robert Harris
, P.Eng. 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 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 production and cash flows of the Parral tailings mine, the ability of
GoGold to self fund its ongoing exploration and administrative costs, 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.
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SOURCE
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For further information:
please contact: Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 07:00e 12-JUL-23