GoGold Resources drills 404 g/t AgEq over 30.2 metres at Los Ricos South, Mexico
GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] reported additional drilling results from Los Ricos South, Mexico, within the main area, including a high-grade intercept from hole LRGG-23-302. The hole intercepted 30.2 metres of 404 g/t AgEq (silver equivalent), including 9.7 metres of 1,110 g/t AgEq, which also included a very-high-grade interval of 5,468 g/t AgEq over 0.8 metres.
“We’ve drilled an additional 100 holes in the main zone at Los Ricos South since our initial July 2020, mineral resource estimate, and we believe they are proving to be quite impactful on our upcoming updated resource and preliminary economic assessment,” said Brad Langille, president and chief executive officer. “Our team is diligently working to complete the studies expected to release before end of summer.”
The main area drilling campaign’s purpose is to better define the very-high-grade portions of the current deposit that may be amenable to bulk underground mining. These holes are in addition to those drilled in 2019 and 2020, which formed part of the initial mineral resource estimate upon which the Los Ricos South preliminary economic assessment was based upon when it was released on January 20, 2021. It is expected that these holes will be included in an updated resource to be released by the end of summer.
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 released 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 released on 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 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. An initial preliminary economic assessment on the project was released on May 17, 2023, indicating a net present value at a 5-per-cent discount of US$413-million.
GoGold Resources also operates the Parral tailings mine in the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco.