GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] reported additional drilling results from Los Ricos South, within the Eagle and Main deposits, Jalisco State, Mexico. Hole LRGAG-22-113 intercepted 16.3 metres of 605 gr/t AgEq (silver equivalent), containing 6,490 g/t AgEq over 0.8 metres. The hole also intercepted an additional 12.3 metres of 462 g/t AgEq. Refer to original press release for complete drill results.
“Impressive drill results continue to come in for the Eagle,” said Brad Langille, president and CEO. “We expect these holes, along with our previously released drilling results, will provide a very positive impact when we update our mineral resource estimate and preliminary economic assessment at Los Ricos South later this year.” The Eagle deposit adjoins the Main deposit and represents a northern extension of the previously defined mineral resource estimate in the Los Ricos South PEA. The Eagle concession covers 1,107 hectares, including the area between the Main deposit and the company’s Jamaica concession located 3 km to the northwest, where the company holds the rights to additional concessions. Drilling at the Eagle deposit 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 LRGG holes contained in the results herein 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 trade-off 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 was based on when it was released on Jan. 20, 2021.
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 Jan. 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. The company has a drill program for an additional 100,000 metres of drilling for 2022 in place.
GoGold 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.