GoGold Resources Inc. [GGD-TSX] on Wednesday released impressive drill results from the Mololoa target at its Los Ricos North project in Jalisco State, Mexico.
Drilling highlights include hole LRMG-21-104, which intersected 1.1-metres of 4,366 g/t silver equivalent (AgEq), contained within 33.4 metres of 317 g/t AgEq.
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.
The company has said indicated mineral resources at Los Ricos North stand at 87.8 million ounces of AgEq, grading 122 g/t AgEq, contained in 22.3 million tonnes.
On top of that is an inferred resources of 73.2 million ounces of AgEq, grading 111 g/t AgEq contained in 20.5 million tonnes.
Exploration at Los Ricos North was launched in March 2020, and has featured drilling at the El Favor, La Trini, Mololoa, Casados and El Orito targets.
The company has said it is planning an additional 100,000 metres of exploration drilling this year in a bid to outline additional mineral resource ounces.
â€œMololoa continues to contribute strong results with high grade intercepts in addition to wider intercepts of potentially bulk minable material,â€™â€™ said GoGold President and CEO Brad Langille. â€œWe believe these results will contribute to our goal of aggressively expanding our mineral resources at Los Ricos in 2022.â€™â€™
The Mololoa is located approximately 1.0 kilometre north of the El Favor deposit, which is estimated to contain 29.4 million ounces of AgEq in the indicated resource category. The company is speculating that Mololoa may be an extension of the Casados deposit.
â€œThe deposit [Mololoa] consists of multiple veins with a total strike length exceeding 1,000 metres to date and numerous historical workings have been encountered in the drilling to date,â€™â€™ the company said in a press release.
GoGold shares were virtually unchanged on the news, easing 0.16% or $0.005 to $3.09 on volume of 196,510. The shares are currently trading in a 52-week range of $3.79 and $2.17.