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
|
Length1
|
Au
|
Ag
|
AuEq2
|
AgEq2
|
|
|
|
(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
|
Rascadero3
|
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.