GoGold Updates on Parral Zinc Circuit and Reports Parral Production
GoGold Updates on Parral Zinc Circuit and Reports Parral
Production
Shares Outstanding: 326,488,511
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
Oct. 17, 2023
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
announces production for the quarter ending
September 30, 2023
. During the quarter, GoGold completed a rehandling program
at Parral where old pad material was rehandled and restacked which resulted in the reclamation of new pad space which will
defer further pad capital expenditure. Production was impacted as a result of the rehandling program, as the rehandled material
was a lower grade than stacking new material. Production during the quarter was 300,789 silver equivalent ounces, consisting
of 169,443 silver ounces, 1,106 gold ounces, and 115 tonnes of copper. Currently, only new material is being stacked at Parral.
SART Zinc Circuit
Construction of a zinc circuit addition to the SART plant at Parral is well underway and projected to be completed by the end of
this year, with the project on budget and on schedule. Testing completed 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 is expected to greatly
increase cash flow at 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
Parral up to end of its mine life will be a producer of silver, gold, copper and zinc
Expected to result in better precious metals recovery
"The completion of the zinc circuit in the SART is important as it expected to generate approximately
$500,000
per month for
cash flow, which will pay back the
$2M
capex quickly. We believe it will improve the metallurgical recoveries of gold and silver
on the material which we are processing currently, so we expect to see production increase once commissioning is completed,"
said Brad Langille, President and CEO. "The team has been successful on maintaining schedule and budget on their
construction. This discipline to schedule and budget we believe will serve us well as we move closer to a construction decision
on Los Ricos South."
Table 1: Quarterly Production Summary
Quarter Ended
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Silver Production (oz)
213,495
145,944
159,838
173,717
203,894
169,443
Gold Production (oz)
3,081
2,278
2,399
2,016
1,512
1,106
Copper Production (tonnes)
98
124
222
143
135
115
Silver Equivalent Production (oz)
1
509,796
400,467
441,217
400,145
375,112
300,789
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: Jun 2022 – 83, Sep 2022 – 90, Dec 2022 – 82, Mar 2023 – 84, Jun
2023 – 82, Sep 2023 – 83. The copper:silver ratios were: Jun 2022 – 415, Sep 2022 – 398, Dec 2022 –
377, Mar 2023 – 399, Jun 2023 – 352, Sep 2023 – 356.
Table 2: Annual Production Summary
Quarter Ended
Sep 2019
Sep 2020
Sep 2021
Sep 2022
Sep 2023
Silver Production (oz)
1,059,438
1,315,661
1,138,358
741,772
706,891
Gold Production (oz)
9,149
10,089
13,447
10,708
7,032
Copper Production (tonnes)
-
260
470
469
615
Silver Equivalent Production (oz)
1
1,847,835
2,295,416
2,270,073
1,810,326
1,517,264
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: Sep 2019 – 86, Sep 2020 – 89, Sep 2021 – 72, Sep 2022 – 82, Sep
2023 – 83. The copper:silver ratio for the periods presented was: Sep 2020 – 302, Sep 2021 – 348, Sep
2022 – 410, Sep 2023 – 373.
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
GoGold Resources Inc.
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For further information:
please contact: Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E:
CO: GoGold Resources Inc.
CNW 06:30e 17-OCT-23