GoGold Resources drills 617 g/t AgEq over 23.3 metres at Los Ricos South, Mexico
GoGold Resources Inc. [GGD-TSX; GLGDF-OTCQX] reported additional drilling results from its Los Ricos South, within the Eagle and Main deposits, Jalisco, Mexico. Hole LRGAG-22-126 intercepted 23.3 metres of 617 g/t silver equivalent, containing 5,818 g/t AgEq over 0.8 metres.
“We continue to be impressed with the results which we’re seeing from Los Ricos South, particularly in the Eagle deposit. Hole 126 is a great example of why we believe this deposit is so special as it has excellent grades over wide intercepts,” said Brad Langille, president and CEO. “We continue moving towards our targets for 2023, which are as follows: completion of the preliminary economic assessment at Los Ricos North by the end of April; a revised mineral resource and revised preliminary economic assessment, including the effects of the Eagle at Los Ricos South, targeting the end of June; and a prefeasibility study, final engineering and permitting for Los Ricos South, targeting a construction decision by the end of the year. We feel that all of this is very achievable and 2023 is truly a catalyst-rich year, and we anticipate will bring great value to the shareholders of GoGold.”
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 northwest where the company holds the rights to additional concessions. Drilling at Eagle 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 here 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 January 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 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 Dec. 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.
GoGold also operates the Parral tailings mine in Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco.