GoGold Resources (TSX:GGD) Announces Promising High-Grade Silver Intercept in Los Ricos South, Updated Resource Estimate Expected by Summer End

Figure 1: Eagle + Main Area Grade Thickness Longitudinal Section. Source: GoGold Resources Inc.

GoGold Resources (TSX:GGD), has announced new drill findings from Los Ricos South, specifically within its Main area. Hole LRGG-23-302, among the recent discoveries, yielded an impressive high-grade intercept of 404 grams per tonne (g/t) of silver equivalent across a length of 30.2 meters. Within this, an interval of 9.7 meters demonstrated 1,110 g/t of silver equivalent, which further comprised a 0.8-meter segment that showed a significantly high-grade reading of 5,468 g/t.

The aim of the current Main area drill exercise is to more accurately identify high-grade segments of the present deposit suitable for bulk underground mining. These recently drilled holes add to the findings of 2019 and 2020, which played a crucial role in forming the initial Mineral Resource Estimate. This provided the basis for the Los Ricos South Preliminary Economic Assessment (PEA), published on January 20, 2021. The expectation is to incorporate these new holes in an updated Resource set for release by summer’s end.

Brad Langille, President and CEO, commented in a press release: “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 CEO. “Our team is diligently working to complete the studies expected to release before end of summer.”

Figure 2: Los Ricos District Overview. Source: GoGold Resources Inc.

GoGold Resources operates two exploratory ventures at the Los Ricos Property, situated in the state of Jalisco, Mexico. The Los Ricos South Project, initiated in March 2019, disclosed its initial Mineral Resource Estimate on July 29, 2020. The figures comprised a Measured & Indicated Mineral Resource of 63.7 million ounces of silver equivalent at a grade of 199 g/t across 10.0 million tonnes, and an Inferred Mineral Resource of 19.9 million ounces of silver equivalent at a grade of 190 g/t across 3.3 million tonnes. The project’s initial PEA, revealed on January 20, 2021, pointed towards an NPV5% of US$295M. The Eagle Concession, located next to the Main Area, was secured in October 2022.

The Los Ricos North Project, embarked upon in March 2020, publicized its initial Mineral Resource on December 7, 2021. The data included an Indicated Mineral Resource of 87.8 million ounces of silver equivalent at a grade of 122 g/t across 22.3 million tonnes, and an Inferred Mineral Resource of 73.2 million ounces of silver equivalent at a grade of 111 g/t across 20.5 million tonnes. The project’s initial PEA, declared on May 17, 2023, indicated an NPV5% of US$413M.

Highlights from the results are as follows:

Table 1: Drill Hole Intersections 

Hole ID

Area / Vein

From

To

Length1

Au

Ag

AuEq2

AgEq2

(m)

(m)

(m)

(g/t)

(g/t)

(g/t)

(g/t)

LRGG-23-302

Main area

52.8

83.0

30.2

1.68

277.7

5.39

404.0

including

67.0

76.7

9.7

4.54

769.1

14.79

1,109.5

including

72.0

73.8

1.8

18.99

3,484.3

65.44

4,908.2

including

73.0

73.8

0.8

30.10

3,210.0

72.90

5,467.5

LRGG-22-281

Main area

135.8

147.5

11.7

0.93

387.3

6.10

457.2

including

136.6

138.0

1.4

5.36

2,780.4

42.43

3,182.6

LRGG-22-282

Main area

175.1

190.8

13.0

0.99

216.0

3.87

290.0

including

186.8

188.8

1.9

2.59

474.0

8.91

668.3

LRGG-22-283

Main area

106.1

118.0

12.0

0.67

80.2

1.74

130.7

including

106.1

107.1

1.1

5.06

169.0

7.31

548.5

LRGG-23-284

Main area

91.1

96.3

5.3

1.62

144.6

3.55

265.9

including

94.6

96.3

1.7

2.98

180.9

5.39

404.3

LRGG-23-285

Main area

68.7

74.8

6.1

1.01

173.4

3.32

249.3

and

90.2

92.6

2.4

1.84

366.0

6.72

503.9

LRGG-23-286

Main area

142.4

165.5

23.1

0.80

143.3

2.71

203.0

including

144.4

146.0

1.7

9.03

1,352.8

27.07

2,030.0

LRGG-23-287

Main area

62.5

72.6

10.1

1.48

81.9

2.58

193.3

including

62.5

69.3

6.8

2.02

97.3

3.31

248.6

and

79.2

80.2

1.1

1.55

459.0

7.67

575.3

LRGG-23-288

Main area

114.6

121.3

6.7

0.45

111.1

1.93

144.8

including

120.2

121.3

1.1

0.36

222.0

3.32

249.0

LRGG-23-289

Main area

101.3

129.4

28.1

0.71

128.7

2.42

181.9

including

111.5

112.5

1.1

3.38

1,080.0

17.78

1,333.5

LRGG-23-291

Main area

87.0

121.8

34.8

1.37

132.4

3.14

235.3

including

113.8

120.8

7.0

4.68

440.4

10.55

791.1

including

116.7

117.7

1.0

19.30

1,935.0

45.10

3,382.5

LRGG-23-292

Main area

141.0

152.8

11.8

0.91

224.1

3.89

292.1

including

141.0

145.3

4.3

2.33

563.1

9.84

737.7

including

144.2

145.3

1.1

3.24

1,295.0

20.51

1,538.0

LRGG-23-293

Main area

8.1

40.7

32.7

1.19

124.4

2.85

213.4

including

26.2

27.3

1.1

3.33

518.0

10.24

767.7

LRGG-23-294

Main area

145.2

161.4

16.3

1.02

69.8

1.95

146.6

including

145.2

146.3

1.1

5.53

125.0

7.20

539.8

LRGG-23-295

Main area

121.9

123.1

1.2

1.30

91.0

2.51

188.1

and

137.3

140.5

3.1

0.43

85.7

1.57

117.7

LRGG-23-296

Main area

147.6

150.2

2.6

0.75

62.4

1.58

118.6

LRGG-23-297

Main area

221.6

232.2

10.6

1.15

189.9

3.68

276.4

including

228.5

230.0

1.6

3.06

414.4

8.59

644.2

LRGG-23-298

Main area

196.2

204.5

8.3

0.83

121.7

2.45

183.6

including

199.1

201.8

2.7

1.71

222.2

4.68

350.7

LRGG-23-299

Main area

233.5

244.8

11.3

1.36

223.7

4.35

325.9

including

242.4

243.4

1.0

3.92

662.0

12.75

956.0

LRGG-23-300

Main area

135.4

138.4

3.1

1.23

112.5

2.73

204.5

1. Not true width

2. AgEq converted using a silver to gold ratio of 75:1 at recoveries of 100%

The Main area drilling campaign’s purposes 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 (“Resource”) upon which the Los Ricos South Preliminary Economic Assessment (“PEA”) 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 the summer.

Table 2: Drill Hole Locations 

Hole ID

Easting

Northing

Elevation

Azimuth

Dip

Length

LRGG-22-281

610614

2327542

1253

50

-53

177

LRGG-22-282

610423

2327672

1280

50

-53

191

LRGG-22-283

610665

2327547

1251

50

-53

156

LRGG-23-284

610272

2327935

1278

50

-51

129

LRGG-23-285

610722

2327532

1245

50

-49

125

LRGG-23-286

610571

2327568

1254

50

-52

183

LRGG-23-287

610300

2327962

1281

50

-59

104

LRGG-23-288

610272

2327935

1278

50

-67

164

LRGG-23-289

610699

2327512

1246

50

-49

153

LRGG-23-290

610248

2328048

1306

50

-55

104

LRGG-23-291

610300

2327928

1284

50

-64

149

LRGG-23-292

610428

2327742

1270

50

-64

160

LRGG-23-293

610422

2327934

1312

50

-60

65

LRGG-23-294

610272

2327902

1278

50

-66

186

LRGG-23-295

610317

2327812

1256

50

-56

170

LRGG-23-296

610207

2327916

1251

50

-52

186

LRGG-23-297

610223

2327766

1233

50

-61

290

LRGG-23-298

610223

2327766

1233

50

-50

250

LRGG-23-299

610281

2327717

1237

50

-65

302

LRGG-23-300

610604

2327563

1258

50

-45

144

LRGG-23-301

610604

2327563

1258

50

-49

136

LRGG-23-302

610318

2327943

1286

50

-51

116

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Matthew Evanoff

I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. With a degree in finance and economics from the University of Toronto, I've contributed to a wide range of industry publications. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.

By Matthew Evanoff

I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. With a degree in finance and economics from the University of Toronto, I've contributed to a wide range of industry publications. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.

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