GoGold tables new resource estimate, shares rise

GoGold Resources Inc. [GGD-TSX] on Tuesday announced an initial mineral resource estimate for the Los Ricos North project in Jalisco State, Mexico, and said it plans to target additional resources in 2022.

The shares advanced on the news, rising 1.9% or $0.06 to $3.21 on volume of 433,340. The shares are currently trading in a 52-week range of $3.79 and $1.59.

The company said indicated mineral resources at the site stand at 87.8 million ounces of silver equivalent (AgEq), grading 122 g/t (AgEq), contained in 22.3 million tonnes.

On top of that is an inferred resources of 73.2 million ounces of AgEq, grading 111 g/t AgEq contained in 20.5 million tonnes.

The Los Ricos North mineral resource is calculated as a pit-constrained resource, forming 96% of the resource estimate with 4.0% being an out-of-pit resource (indicated 900,000 ounces of AgEq and 6.4 million ounces of inferred material, grading 178 AgEq).

GoGold is a Canadian-based silver and gold producer with operations in Mexico. The company operates the Parral Tailings mine in the state of Chihuahua.

Back in March, 2019, it acquired the rights to an agreement that provides it with the option to acquire a 100% interest in Los Ricos, which 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 is split into two projects, Los Ricos South and Los Ricos North. They are 25 kilometres apart. Los Ricos North includes the Salomon-Favor, La Trini and Mololoa targets.

According to an estimate announced in July, 2020, Los Ricos South contains a measured and indicated resource of 63.7 million ounces of silver equivalent (AgEq) grading 199 g/t AgEq, material that is contained in 10 million tonnes.

On top of that is 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 announced in January, 2021, indicating a net present value of US$296 million.

Exploration at Los Ricos North was launched in March 2020, and includes drilling at  the El Favor, La Trini, Mololoa, Casados and El Orito targets.

During 2020, GoGold’s exploration team identified over 100 targets on the Los Ricos North properties, a move that demonstrated the significant exploration potential there.

In Los Ricos North, an additional 100,000 metres of exploration drilling targeting additional mineral resource ounces is planned for 2022. The company has said when factoring in Los Ricos South, total Los Ricos measured and indicated resources now stand at 151.5 million ounces of AgEq, with total Los Ricos inferred resources standing at 93 million ounces of AgEq.