GoGold set for mine construction in Mexico, shares rally
GoGold Resources Inc. [GGD-TSX] said the Mexican Federal Environmental Department (SEMARNAT) has granted all permits and approvals required from SEMARNAT for construction of the Los Ricos South bulk tonnage underground mine.
GoGold shares advanced on the news, rising 11.2% or 34 cents to $3.37 in early trading Monday. The shares trade in a 52-week range of $4.12 and $1.96.
The company said its board of directors has given the green light for construction to begin. The first gold pour is anticipated around 24 months after the start of construction.
GoGold is a silver and gold producer with a focus on Mexico. It operates the Parral Tailings mine in the state of Chihuahua, and the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco.
Los Ricos consists of 29 concessions and covers over 22,000 hectares. The property is home to several historical mining operations and is located roughly 100 kilometres northwest of Guadalajara.
Los Ricos South includes the “Main” area, which is focused on drilling around a number of historical mines, including El Abra, El Troce, San Juan and Rascadero.
In a press release on February 28, 2025, GoGold announced the filing of a NI 43-101 compliant feasibility study technical report for Los Ricos South. It said the feasibility study includes a re-engineered 2,000 tonne per day underground mine.
The feasibility study envisages a 15-year mine plan producing a total of 80 million payable silver equivalent ounces (AgEq), consisting of 41 million ounces of silver, 424,000 gold ounces and 11 million pounds of copper.
Also envisaged is an initial capital cost of $227 million, including $21 million in contingency costs, over the expected two-year build, and sustaining capital costs of $100 million over the life of the mine.
“We are deeply grateful and committed to Mexico and the people of Jalisco for their partnership and trust as we advance this project, and we remain fully committed to creating long-term value for the country and its communities,’’ said GoGold President and CEO Brad Langille.
He said the project has been designed with rigorous environmental protections and sustainability practises at its core.
The company recently raised $144 million from an upsized bought deal offering and said it would the proceeds for exploration and development of its Los Ricos. The offering consisted of 54.24 million units priced at $2.65 per unit. The amount raised included the full exercise of a 15% over-allotment option that enabled the underwriters to purchase an additional 7.07 million units.
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