GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] reported additional drilling results from the main deposit within Los Ricos South as well as from the newly acquired Eagle concession, which contains the northern strike extension of the main deposit on the Los Ricos South property, Mexico.
Highlights of the main deposit drilling include hole LRGG-22-218, which intercepted 7,093 g/t AgEq (silver equivalent) over 0.9 metres, contained within 4.8 metres of 2,558 g/t AgEq within a wider intercept of 15 metres of 828 g/t AgEq (see complete assays in original press release).
“Drilling continues to expand the size of the newly acquired Eagle zone and continues to confirm high-grade, wide intercepts in the main deposit,” said Brad Langille, president and CEO. “These results further confirm that both the main zone and the Eagle are developing into bulk-minable, high-grade deposits, which should significantly increase the value of Los Ricos South.”
The LRGG holes contained in the results above are part of a new drilling program at the main deposit. The purpose of the program is to better define the very-high-grade portions of the current deposit that may be amenable to bulk underground mining.
The company is carrying out a tradeoff study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining. These holes are in addition to those drilled in 2019 and 2020, which formed part of the initial resource upon which the Los Ricos South preliminary economic assessment (PEA) was based on when it was released January 20, 2021.
The Eagle concession adjoins the main deposit where the Los Ricos South PEA is contained. 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 concession 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 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 concessions in Los Ricos South are now contiguous.
The company’s exploration team has been completing detailed mapping and sampling at Jamaica over the past 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. The Los Ricos South project began in March, 2019, and an initial mineral resource was released on July 29, 2020, which disclosed a Measured and Indicated resource of 63.7 million ounces AgEq grading 199 g/t AgEq contained in 10 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 released January 20, 2021, indicating a net present value at a 5% discount of US$295-million. The Eagle concession was acquired in October 2022, and is adjacent to the main area, which contains the initial mineral resource.
The Los Ricos North project was launched in March 2020, and an initial mineral resource was released on December 7, 2021, which disclosed an Indicated resource of 87.8 million ounces AgEq grading 122 g/t AgEq contained in 22.3 million tonnes, and an Inferred 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.