Shares Outstanding: 264,266,768
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS, Oct. 21, 2020 /CNW/ - GoGold Resources
Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the
Company") is pleased to provide an update on the progress
of the Preliminary Economic Assessment ("PEA") at their Los Ricos
South project located in Jalisco
state, Mexico.
GoGold contracted SGS Canada Inc.'s Lakefield ("SGS") office to complete work
required for portions of the PEA including extraction testing on
the Los Ricos South core samples. Two composites of the material
were prepared representing six samples each from across the deposit
and at difference grade ranges. Testing on the composites involved
bottle rolls at different grind sizes, cyanide strengths and leach
times. Based on the testing of the samples, the test program
concluded that 93% of gold and 88% of silver can be recovered over
a 72 hour conventional cyanide milling process at a typical mill
grind which produces a saleable precious metals doré bar. SGS has
also been contracted to complete a series of communition tests
(determining rock hardness for grinding and crushing) on the
mineralized core. These tests are currently underway.
The test work above will lead to a processing cost which will be
an input to the PEA to be completed before the end of the year. The
objective is to design as simplistic as possible of a mill circuit
which achieves high recoveries of precious metals at a low process
cost.
"We are very pleased with the strong gold and silver recoveries
achieved in the metallurgical test work. The metallurgical focus of
this study is to demonstrate a conventional milling circuit could
lead to exceptional economics that we believe could be achieved at
the first deposit in our Los Ricos district," said Brad Langille, President and CEO. "The PEA is on
track for completion before the end of this year. With our strong
cash flow from Parral and our cash balance in excess of
$52 million USD, we are aggressively
advancing the Los Ricos district."
The PEA is being led by P&E Mining Consultants Inc, with
metallurgical test work completed by SGS, geotechnical study is by
Golder & Associates of Tucson,
plant design and costing by D.E.N.M. Engineering Ltd., and
environmental and permitting led by CIMA Mexico.
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 includes the 'Main'
area, which is focused on drilling around a number of historical
mines including El Abra, El Troce,
San Juan, and Rascadero, as well
as the Cerro Colorado, Las Lamas
and East Vein targets. An initial resource on the Los Ricos South
project was announced on July 29,
2020 and 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.
The Los Ricos North Project was launched in March 2020 and includes drilling at the
Salomon-Favor, La Trini, and Mololoa targets.
Mr. Bob 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
the Parral tailings project, the Los Ricos South and North
projects, future operating margins, future production and
processing, and future plans and objectives of GoGold, including
the timing for completing a PEA at Los Ricos South and for
completing an initial resources estimate at Los Ricos North,
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.