GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] reported results of six new drill holes from the El Favor deposit in the 100%-optioned Los Ricos North project, Jalisco, Mexico. Drill hole LRGF-21-041 intersected 56.1 metres of 105 g/t silver equivalent (AgEq), including 1.3 metres of 1,243 g/t AgEq.
The merging of four veins in the western portion of El Favor continue to provide significant widths of good grade, which could be potentially amenable to bulk mining. Currently at El Favor drilling is under way on an eastern extension of the structure where good mineralization has been encountered and assay results are expected in the coming weeks. See the associated table for breakdown of silver and gold values.
“Over the last several months, our exploration drilling on El Orito and El Favor led us to believe that these structures may connect to form a mineralized zone in excess of three kilometres. This is a very exciting development, which could add greatly to the potential mineral resources in Los Ricos North,” said Brad Langille, president and CEO. “The combination of geophysics and drill testing on this El Orito — El Favor trend are powerful tools in the development of Los Ricos North.”
Three of the four major veins (Salomon, Guitarrillas and Los Chivos) appear to converge into a 100-metre wide zone at the western end of the El Favor deposit in the vicinity of the Hundido pit at an elevation of 1,300 meres. The wallrock in between the veins is strongly silicified, altered and mineralized. This mineralization can be observed in outcrop at the Hundido pit, underground in the Salomon crosscut and in the road cuts along the north side of the El Favor hill and in the drill holes. More holes are required in this area to determine the strike length and potential depth of these wide combined zones.
The eastern end of the El Orito deposit (as presently defined) is located about 800 metres along strike to the west of the Hundido pit. Wide zones of precious and base metal mineralization were cut by drill holes at El Orito at elevations between 600 and 800 metres. Geological mapping, prospecting and sampling programs in the area between El Orito and the Hundido Pit have been accelerated and given priority.
There are two exploration projects at its Los Ricos property. The Los Ricos South project began in March, 2019, and an initial resource was announced July 29, 2020, which stated a Measured and Indicated 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. An initial PEA on the project was announced on Jan. 20, 2021, indicating an NPV5 (net present value at a 5% discount) of US$295-million.