GoGold Resources Inc. [GGD-TSX] on Wednesday released the final batch of drilling results ahead of an initial resource estimate that the company plans to announce for its Los Ricos North project in Jalisco State, Mexico.
GoGold is a Canadian-based silver and gold producer with operations in Mexico. The company operates the Parral Tailings mine in the state of Chihuahua.
Back in March, 2019, it acquired the rights to an agreement that provides it with the option to acquire a 100% interest in Los Ricos, which consists of 29 concessions and covers over 22,000 hectares. The property is home to several historical mining operations and is located roughly 100 kilometres northwest of Guadalajara.
Los Ricos is split into two projects, Los Ricos South and Los Ricos North. They are 25 kilometres apart. Los Ricos North includes the Salomon-Favor, La Trini and Mololoa targets.
According to an estimate announced in July, 2020, Los Ricos South contains a measured and indicated resource of 63.7 million ounces of silver equivalent (AgEq) grading 199 g/t AgEq, material that is contained in 10 million tonnes.
On top of that is an inferred resource of 19.9 million ounces AgEq, grading 190 g/t AgEq contained in 3.3 million tonnes. An initial PEA on the project was announced in January, 2021, indicating a net present value of US$296 million.
Exploration at Los Ricos North was launched in March 2020, and includes drilling at the El Favor, La Trini, Mololoa, Casados and El Orito targets.
During 2020, GoGold’s exploration team identified over 100 targets on the Los Ricos North properties, a move that demonstrated the significant exploration potential there. The company has said it plans to drill 10 targets as part of its 2021 drilling program which is expected to exceed 100,000 metres, making it one of the largest in Mexico.
Results released on Wednesday are from five holes at El Favor East, two at El Orito, one at Mololoa and one at El Nayar. Drilling highlights include hole LRGF-21-095, which intersected 0.7 metres of 1,523 g/t AgEq within 13.3 metres of 139 g/t EgEq.
“With these final drill holes, we’ve reached the data cut-off for our initial Los Ricos North mineral resource estimate, which we expect to release shortly,’’ said GoGold President and CEO Brad Langille.
“While the data cut-off for the resources has been hit, the drills continue to progress on the next 100,000 metres, which is budgeted for the Los Ricos district through 2022,’’ he said.
“Today’s release includes results from the El Favor East target, which continue to extend the discovery to the east,” Langille said. “This is one key area where we plan to continue drilling and exploring in our 2022 drilling program.’’
On Wednesday, GoGold shares rose 0.815% or $0.03 to $3.71 on volume of 477,570. The shares are currently trading in a 52-week range of $3.74 and $1.46.