GoGold drills 388 g/t AgEq over 110.6 metres at Los Ricos South, Mexico, shares up
GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] has released a second set of drilling results from the newly acquired Eagle concession, which contains the northern strike extension of the Main deposit on the Los Ricos South property, Jalisco state, Mexico. Highlights of the drilling include hole LRGAG-22-035, one of the strongest holes drilled to date in the Los Ricos district, which intercepted 21,580 g/t silver equivalent (AgEq) over 0.9 metres, contained within 11.5 metres of 3,047 g/t AgEq within a wider intercept of 110.6 metres of 388 g/t AgEq. Refer to original press release for complete drill results.
“Drilling along strike on the new Eagle concession continues to return exceptional results in both high-grade and very wide widths. Today’s release of hole 35, along with hole 14 in our last release, represent two of the best holes drilled in the Los Ricos district,” said Brad Langille, president and CEO. “With results like this, we are focusing the majority of our exploration on the new Eagle concession along with additional drill targets on the Main zone in Los Ricos South. Additional results are expected shortly.”
The Eagle concession adjoins the Main deposit where the Los Ricos South preliminary economic assessment (PEA) was released on Jan. 20, 2021. This represents an extension to the previously defined mineral resource estimate at Los Ricos South. The concession covers 1,107 hectares, including the area between the Main deposit and the company’s Jamaica concessions located 3 km northwest, where the company holds the rights to additional concessions. Due diligence drilling has returned the highest-grade intercepts to date in the district. These wide, high-grade intercepts are consistent with geophysical targets on the new concession.
The company has completed preliminary geological mapping, sampling, geophysical induced polarization surveying and has commenced a drill program at the Eagle concession. Mapping and geophysics indicate the Eagle structure extends in excess of 2.5 km to the northwest, at which point it continues onto the company’s previously owned Jamaica concessions. The Main area was included in the initial Los Ricos South mineral resource estimate released on July 29, 2020, which included 1.1 km along strike of the mineralized trend.
The results of the sampling and geophysical IP survey appear to indicate that the mineralized structure continues in a northerly direction from the Main area. Significant geophysical anomalies were identified which will form targets for the drilling campaign.
The Eagle concession connects the company’s concessions held in the southern portion of its Los Ricos South project, including the Main area where the initial resource was released, to its northern concessions in Los Ricos South, which includes the Jamaica exploration target. As a result, all of the concessions in Los Ricos South are now contiguous.
The company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometres over the Jamaica concessions. This offers the potential for an additional bulk-tonnage target in Los Ricos South, with continuity from the Main area and Eagle.
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 an initial mineral resource was announced on July 29, 2020, which disclosed a measured and indicated mineral resource of 63.7 million ounces AgEq grading 199 g/t AgEq contained in 10 million tonnes, and an inferred mineral 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 January 20, 2021, indicating a net present value (5%) of US$295-million.
The Los Ricos North project was launched in March, 2020, and an initial mineral resource was announced on December 7, 2021, which disclosed an indicated mineral resource of 87.8 million ounces AgEq grading 122 g/t AgEq contained in 22.3 million tonnes, and an inferred mineral resource of 73.2 million ounces AgEq grading 111 g/t AgEq contained in 20.5 million tonnes. The company has a drill program for an additional 100,000 metres of drilling for 2022 in place.
In early trading 4Nov22, shares of GoGold Resources gained $0.11 to $1.57.