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.”

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 

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 

GoGold Resources (TSX:GGD) has announced the latest drilling results from the Eagle and Main Deposits at Los Ricos South, with Hole LRGAG-22-125 intercepting 42.3m of 288 g/t silver equivalent, containing 2,017 g/t AgEq over 2.8m. The results are consistent with geophysical targets on the new concession, and drilling at the Eagle has returned the highest grade intercepts to date in the district.

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 3km to the northwest, where the Company holds the rights to additional concessions.

The LRGG holes contained in the results in Table 1 are part of a new drilling program at the Main Deposit. The aim 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.

Table 1:  Drill Hole Intersections 

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 (“PEA”) was based upon when it was released on January 20, 2021.

Overall, the results are a positive indication of the mineral potential in the Los Ricos district, and the Company is confident that further exploration will yield significant results.

Brad Langille, President and CEO of GoGold, commented in a press release: “We continue to see strong results from our drilling program at Los Ricos South, such as those from hole 125 which expands on the high-grade area shown in Figure 1. It is drilling results such as these which we anticipate will provide a very positive impact when our Mineral Resource Estimate and Preliminary Economic Assessment at  Los Ricos South is updated later this year. “

Table 2 : Eagle Deposit Drill Intercept Highlights

Table 3: Drill Hole Locations  

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.

GoGold Resources (TSX:GGD) has announced a second set of drill results at its Eagle concession containing the northern strike extension of the Main Deposit on the Los Ricos South property. The recent highlights add to previous results from the company at the project. New highlights include hole LRGAG-22-035, one of the strongest holes drilled to date in the Los Ricos district, which intercepted 21,580 g/t silver equivalent (“AgEq”) over 0.9m, contained within 11.5m of 3,047 g/t AgEq within a wider intercept of 110.6m of 388 g/t AgEq. 

President and CEO of GoGold Brad Langille commented in a press release: “Drilling along strike on the new Eagle concession continues to return exceptional results in both high grade and very wide widths. Today’s release of hole 35, along with hole 14 in our last release represent two of the best holes drilled in the Los Ricos district. With results like this, we are focussing the majority of our exploration on the new Eagle concession along with additional drill targets on the Main zone in Los Ricos South. Additional results are expected shortly.”

Table 1:  Drill Hole Intersections

The Eagle concession adjoins the Main Deposit where the Los Ricos South Preliminary Economic Assessment (“PEA”) was released on January 20, 2021. This represents an extension to this previously defined Mineral Resource Estimate at Los Ricos South. The concession covers 1,107 hectares, including the area between the Main Deposit and the Company’s Jamaica concession located 3km to the northwest, where the Company holds the rights to additional concessions.  Due diligence drilling 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.  See Figure 1 below which shows a cross section including drill hole LRGAG-22-035.

The Company has completed preliminary geological mapping, sampling, geophysical IP surveying, and has commenced a drill program at the Eagle.  Mapping and geophysics indicate the Eagle structure extending in excess of 2.5km to the northwest, at which point it continues onto the Company’s previously owned Jamaica concessions. The Main Area was included in the initial Los Ricos South Mineral Resource estimate released on July 29, 2020, which included 1.1 km along strike of the mineralized trend. 

While there was some historical underground mining development in the early 1900’s on the Eagle concession, there was only one historical void encountered during drilling, which suggest that the mineralization at the Eagle may be intact and not previously mined. The location and high grade intercepts may indicate the presence of a high grade ore shoot that was not previously exploited.  This differs from the Main Area which has had portions of it’s high grade ore shoots mined out.

The results of the sampling and geophysical IP survey (Figure 4) appear to indicate that the mineralized structure continues in a Northerly direction from the Main Area. Significant geophysical anomalies were identified which will form targets for the drilling campaign. 

The Eagle concession connects the Company’s concessions held in the southern portion of its Los Ricos South project, including the Main area where the Initial Resource was released, to its northern concessions in Los Ricos South, which includes the Jamaica exploration target.  As a result, all of the concessions in Los Ricos South are now contiguous (Figure 5).

The Company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometres over the Jamaica concessions.  This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle.

Table 2: Drill Hole Locations