Shares Outstanding: 229,370,937
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS, Aug. 25, 2020 /CNW/ - GoGold Resources
Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the
Company") is pleased to announce the filing of a National
Instrument 43-101 Technical Report (the "Report") on the Initial
Mineral Resource Estimate for their Los Ricos South Project located
in Jalisco State, Mexico. The highlights of the Report were
previously announced in a news release dated July 29, 2020, and the effective date of the
Report is July 28, 2020.
Highlights of the Mineral Resource Estimate:
- Measured & Indicated Mineral Resource at Los Ricos South of
63.7 million ounces silver equivalent ("AgEq") grading 199 g/t AgEq
contained in 10.0 million tonnes ("Mt")
- Inferred Mineral Resource at Los Ricos South of 19.9 million
ounces AgEq grading 190 g/t AgEq contained in 3.3 Mt
- Los Ricos South Mineral Resource is potentially amenable to
both open pit and bulk underground mining methods
"Beyond some additional Mineral Resource drilling, we see the
next steps at Los Ricos South, in conjunction with our primary
technical consultant P&E Mining Consultants Inc., as being a
Preliminary Economic Assessment ("PEA"), which we will endeavour to
complete before year's end," said Brad
Langille, President and CEO. "We're also pleased to
announce the signing of a more robust surface rights agreement
which, in addition to exploration, includes provisions for
exploitation and mining at Los Ricos South."
The Report is available on the Company's website and
SEDAR. The pit constrained and out-of-pit Mineral Resource
Estimate for Los Ricos South are summarized below in Table 1.
Surface Rights Agreement
The Ejido of Cinco
Minas owns the surface rights over the majority of the Los
Ricos South concessions including all of those within the Mineral
Resource Estimate. On August 9,
2020, the Ejido of
Cinco Minas signed an agreement with
the Company for a period of 12 years with an additional 12 year
renewal period. The agreement gives access to enter and carry out
exploration and exploitation work on 1280 hectares at the Los Ricos
South Project, which covers the above mentioned Mineral
Resource. The details, including a surface concession map and
terms, are included in the Report.
Table 1: Los Ricos South Mineral Resource Estimate – Pit
Constrained and Out-of-Pit(1-8)
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
Constrained5
|
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-Pit6,7
|
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 1.8 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 1.8 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.
|
Qualified Persons
The independent Qualified Person for
the Mineral Resource and Mineral Reserve disclosure for the project
is Eugene Puritch, P.Eng., FEC, CET,
President of P&E, who has reviewed and approved the technical
contents of this release. Mr. David
Duncan, P. Geo. is the Qualified Person for GoGold as
defined by National Instrument 43-101 and is responsible for the
technical information of this news release.
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.
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.
About P&E Mining Consultants Inc.
P&E Mining
Consultants Inc., established in 2004, provides geological and mine
engineering consulting reports, Mineral Resource Estimate Technical
Reports, Preliminary Economic Assessments and Pre-Feasibility
Studies. In addition, they are affiliated with major
Toronto based consulting firms for
the purposes of joint venturing on Feasibility Studies. Their
experience covers over 350 NI 43-101 Technical Reports on diamonds,
most metallic deposits including gold, silver, base metals, PGM and
iron for both open pit and underground deposits.
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 South and North
projects, communication with warrant holders, 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.